Industrials
Yurtec is a construction company of electric power facilities. It is a beneficiary of increased power consumption, reshoring manufacturing and the surge in construction activities, particularly due to government-backed offshore wind power and solar projects. The firm boasts a robust balance sheet with ¥27bn in net cash, leaving it well-equipped to finance its expansion initiatives. The share price jumped c.15% post FY24 results and are up 35% YTD, but still trade at a low PE of 13.3x for FY25E and PB of 0.76x. Yuka Marosek believes Yurtec can catch up with industry leader, Kyudenko, which trades at 17.7x PE. Under this multiple expansion scenario, the shares offer 30% upside.
Edition: 185
- 03 May, 2024