EVENTS:   Best Equity Short Ideas Conference Call 12 - Zach Shannon/Corto Capital Advisors & Craig Huber/Huber Research Partners & Thomas Beevers /Forensic Alpha & Ed Steele/Iron Blue Financials & Bill Campbell/Paragon Intel - 12 Nov 25   Will AI Deflate the World? Macro Lessons from Three Industrial Revolutions and China - Manoj Pradhan/Talking Heads Macro - 13 Nov 25     ROADSHOWS: Forest Products Sector Equity and Commodity Research With Expertise in Distressed Debt - Kevin Mason /ERA Research   •   London   12 - 14 Nov 25       Buyside to Buyside Forum and Expert Calls across TMT, Consumer, Healthcare and Fintech - Andrew Peters /Revelare Partners   •   London   17 - 19 Nov 25       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   17 - 19 Nov 25      

Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Foster Electric (6794)

Technology

Asymmetric Advisors

At 0.65x PBR with balance sheet net cash and on 12x CoE of OP +25% Y/Y after +80% last FY, this still looks good value despite its rise from 0.4x PBR at the start of 2024. Foster is the global No.1 supplier of car speakers on an OEM basis and is entering an upturn as car makers switch from prioritising investment in EV batteries to improving interiors and the numbers of speakers per car is rising whilst speakers are being incorporated for non-entertainment purposes such as proximity alerts which are becoming semi-mandatory. Foster has also fully exited and taken close down losses from its consistently loss-making i-Phone earphone business.

Edition: 191

- 26 July, 2024