Summary of Jerash Holdings Conference Call Company Overview - Jerash Holdings is a contract manufacturer located in Jordan, specializing in high-quality apparel for premium global brands. The company operates six factories and produces over 20 million garments annually [4][5]. - The company has a history of strategic growth, including an IPO in 2018 and expansion into PPE manufacturing during the COVID-19 pandemic [6][7]. Customer Base and Sales Dynamics - In 2019, VF Corporation accounted for over 80% of Jerash's sales, primarily through brands like The North Face. As of the last fiscal year, this has decreased to 65%, with projections for the current year indicating a further decline to 54% [10][11]. - New Balance has grown to represent about 12% of sales, with expectations to increase to 14% [11]. Tariff and Competitive Advantages - Jordan's current tariff rate for apparel exports to the US is 15%, significantly lower than competitors like China (70%), Vietnam (38%), and India (64%) [14][15][16]. - Jordan has a duty-free agreement with the EU, allowing for zero tariffs on exports to European countries [18]. Operational Capabilities - Jerash is recognized for its ability to manufacture complex garments, such as jackets and outerwear, which require skilled labor and high-quality control [25][26]. - The company has recently partnered with a major Korean manufacturer, Hansel, to fulfill increased demand, which has fully booked their production capacity [28][30]. Capacity Expansion and Future Growth - All factories are fully booked until summer 2026, indicating strong demand for Jerash's products [34][35]. - The company is considering expanding its capacity through new facilities, with potential costs ranging from $20 million to $30 million for a new building, while a satellite factory in Al Hasa is expected to cost around $2 million [45][47]. Profitability and Capital Expenditure - The growth in production capacity is expected to lower unit costs, enhancing overall profitability [43]. - Minimal capital expenditure is planned for the current fiscal year, focusing on automation and internal expansions [44][45]. Strategic Focus - Jerash is currently prioritizing organic growth over mergers and acquisitions, although it remains open to opportunities if they arise [48]. - The company aims to diversify its geographical sales, with significant growth in the European market and plans to expand into the Middle East [50][51]. Conclusion - Jerash Holdings is well-positioned in the apparel manufacturing industry, leveraging competitive tariff advantages, a strong customer base, and operational capabilities to drive future growth. The focus on capacity expansion and strategic partnerships will be critical in meeting increasing demand and enhancing profitability.

Investment Rating - The industry investment rating is Attractive [6] Core Insights - Despite weaker May industrial profit growth, the incremental impact on industrial credit risks remains small due to concentrated profit deterioration in a few sectors affected by US tariffs, a notable decline in US tariffs from their peak, and modest negative impacts on EBIT interest coverage [2][4] - More sectors are slowing capacity expansion, with ferrous metal processing showing a 1.6% year-on-year decline in fixed asset investment in May 2025, down from 5.4% year-on-year growth in the first half of 2024, indicating continued capacity control [3] - Year-to-date industrial sector profit fell 1.1% year-on-year in May compared to a 1.4% year-on-year decline in April, primarily affected by mining, particularly oil mining [4] - Risks around loans to the auto sector are emerging as a new concern, representing 40% of sectors showing expanding capacity with deteriorating profit, which is the largest drag on year-on-year profit growth in manufacturing firms [5] - Overall manufacturing sector profit growth moderated to 5.4% year-on-year in January-May 2025 from 8.6% in January-April 2025, partly due to the peak in US tariffs [9] Summary by Sections Industrial Credit Risks - The report indicates that the impact of weaker industrial profit growth on credit risks is limited due to the concentration of issues in specific sectors and the decline in US tariffs [2][4] - The mining sector, dominated by large state-owned enterprises, poses less concern for credit risks unless commodity prices remain pressured for an extended period [4] Capacity Expansion and Profit Trends - A significant portion of sectors (73.5% by liabilities) slowed capital expenditure growth in May 2025 compared to the first half of 2024, an increase from 66.8% in April 2025 [9] - Profit trends show that 42.7% of sectors experienced improvements, while 27.5% saw deterioration, indicating a shift in profit dynamics influenced by US export exposure and capital expenditure growth [9] Sector-Specific Insights - The auto sector is highlighted as a potential risk area, with significant capacity expansion occurring alongside profit deterioration [5] - The report emphasizes the importance of market-oriented credit allocation and loan pricing to manage industrial credit risks effectively over time [3]

Report Industry Investment Rating - The report maintains a short - allocation view on zinc [1] Core View - The lead price is supported at the bottom and will be range - bound in the short term, with subsequent focus on demand improvement and macro uncertainties. The zinc price rebound space is limited [1] Summary by Related Indicators Lead - related Indicators - SMM1 lead ingot average price is 16,725.00 yuan/ton, down 0.15%. The closing price of the Shanghai lead futures main contract is 16,860.00 yuan/ton, down 0.71%. The Shanghai lead basis is - 135.00 yuan/ton, up 95.00 yuan. The Shanghai lead futures active contract trading volume is 29,996.00 lots, down 0.81%. The position is 41,457.00 lots, down 1.43%. The LME lead inventory is 287,450.00 tons, unchanged. The Shanghai lead warehouse receipt inventory is 45,503.00 tons, unchanged. The LME 3 - month lead futures closing price (electronic trading) is 1,976.00 US dollars/ton, down 1.52%. The Shanghai - London lead price ratio is 8.53, up 0.83% [1] - The primary lead production is stable with a slight increase. The recycled lead production is at a relatively low level due to raw material shortages and cost - price inversion. The recycled lead finished product inventory is increasing. The demand is expected to improve as it transitions from the off - season to the peak season [1] Zinc - related Indicators - SMM1 zinc ingot average price is 21,940.00 yuan/ton, up 0.05%. The closing price of the Shanghai zinc futures main contract is 21,905.00 yuan/ton, up 0.30%. The Shanghai zinc basis is 35.00 yuan/ton, down 55.00 yuan. The Shanghai zinc futures active contract trading volume is 124,389.00 lots, down 24.14%. The position is 105,668.00 lots, down 9.11%. The LME zinc inventory is 128,875.00 tons, unchanged. The Shanghai zinc warehouse receipt inventory is 9,788.00 tons, down 1.79%. The LME 3 - month zinc futures closing price (electronic trading) is 2,636.50 US dollars/ton, down 0.88%. The Shanghai - London zinc price ratio is 8.31, up 1.19% [1] - Hindustan Zinc (HZL) approves a 120 billion - rupee (about 1.39 billion US dollars) capacity expansion project, aiming to increase annual zinc production from 102 million tons to 200 million tons in the next few years. A northwest zinc smelter plans to add a 70,000 - ton zinc alloy production line by the end of the year and a second - phase project in 2026 [1] - The zinc concentrate supply shortage is improving, the refinery profit and production enthusiasm are increasing, and the production volume is on the rise. The end - user demand is in the off - season, but the downstream purchase has improved after the zinc price decline [1]

Growth Capital Raise Corporate Update June 17, 2025 Confidential Information. Do Not Distribute. 11 Confidential Information. Do Not Distribute. Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected timing of the closing of the proposed offering of preferred stock and the continued execution of PureCycle's business plan; the expected growth in the number of PureCycle's facilities, including the timing of such growth and the expected product ...

Core Insights - NGL Energy Partners LP (NGL) is expected to see significant increases in capacity due to the LEX II expansion, which is likely to enhance future free cash flow growth [1] - Recent debt refinancing is also a factor that may positively impact the company's financial outlook [1] Financial Analysis - The analysis focuses on cash flow statements and unlevered free cash flow figures, with assumptions based on historical financial data and forecasts regarding the business model [1] - Financial models may include various metrics such as cost of capital, cost of debt, WACC, share count, and net debt [1] - The study typically emphasizes trading multiples like EV/FCF, net income, and EV/EBITDA [1]

Financial Data and Key Metrics Changes - Ternium reported a sequential increase in EBITDA driven by improved margins and slightly higher shipments [6] - Net income for Q1 2025 stood at $142 million, including a $45 million provision adjustment charge related to ongoing litigation [18] - Adjusted net income, excluding the major charge, was $188 million, marking a significant improvement over the prior quarter [19] Business Line Data and Key Metrics Changes - The steel segment saw higher shipments in Brazil and other markets, partially offset by lower sales volumes in Mexico [19] - Mining segment shipments increased slightly quarter over quarter and rose 14% year over year, driven by higher production levels in Mexico and Brazil [22] Market Data and Key Metrics Changes - In Mexico, apparent consumption of steel decreased almost 5% in 2024, affecting demand [30] - Brazilian trade authorities reported a significant year-over-year increase in imports during Q1 2025, with ongoing anti-dumping investigations on imports from China [9] Company Strategy and Development Direction - The company aims to enhance competitiveness by increasing operational efficiency and reducing costs amid a challenging trade environment [10] - Ternium's expansion project in Mexico has a revised total CapEx of $4 billion, representing a 16% increase compared to previous estimates [12] - The company expects to achieve a double-digit EBITDA margin in Q2 2025, supported by increased realized prices and cost reduction initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management noted that trade tensions and uncertainty are impacting global economic growth, but there is optimism regarding the Plan Mexico initiative to enhance industrialization [6][8] - The outlook for the steel sector in Argentina is improving, with expectations of a 20% increase in shipments in the upcoming quarters [56] Other Important Information - The company maintains a strong balance sheet with a net cash position of $1.3 billion as of March 2025 [23] - Ternium's CapEx for 2025 is projected to be around $2.5 billion, with significant investments in ongoing projects [23] Q&A Session Summary Question: Situation in Mexico and GDP impact - Management acknowledged the challenging environment in Mexico, with expectations for demand to improve in the following quarters, particularly in the commercial market [30][31] Question: Margins and profitability outlook - Management indicated that margins are expected to improve in Q2 2025, with a potential return to more reasonable levels compared to previous quarters [37][38] Question: Cost reduction and volume growth opportunities - Management confirmed ongoing cost reduction programs and highlighted the potential for volume growth in Mexico due to decreased imports [41][45] Question: Cash returns and dividend payments - Management expressed confidence in sustaining dividend payments despite ongoing CapEx plans, citing a solid financial position [54] Question: Argentina's steel sector outlook - Management noted improvements in Argentina's steel sector, with expectations for increased shipments and no immediate plans for capacity expansion [56] Question: CapEx increase reasons and timeline - Management explained that the CapEx increase was due to higher construction costs and inflation, with the additional costs expected to be distributed over the project timeline [64]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 10.6% to $1.46 billion, while adjusted EBITDA rose by 14.9% to $313.6 million [16] - Total discharges grew by 6.3%, with same-store discharges increasing by 4.4% [8][16] - Net revenue per discharge increased by 3.9%, driven by a favorable payer mix [16][20] Business Line Data and Key Metrics Changes - The company reported a discharge community rate of 84%, with a discharge to acute rate of 8.9% and a discharge to skilled nursing facility (SNF) rate of 6.4% [9] - Annualized RN turnover decreased to 20.1% from 20.4%, and therapist turnover fell to 6.3% from 7.7% [10] Market Data and Key Metrics Changes - The demand for inpatient rehabilitation services remains strong, with plans to open six de novo hospitals and add 300 beds in 2025 [11][12] - The company anticipates adding approximately 120 beds to existing hospitals in both 2026 and 2027 due to strong volumes and occupancy levels [12] Company Strategy and Development Direction - The company is increasing its 2025 guidance based on strong Q1 results, with net operating revenue expected to be between $5.85 billion and $5.925 billion [20] - The company continues to invest in capacity additions to meet the growing demand for inpatient rehabilitation services, particularly as the U.S. population ages [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for services is not expected to fluctuate with economic conditions, as patients are nondiscretionary [95] - The company is closely monitoring the payer mix and does not anticipate the recent trends to become the new normal [25][121] Other Important Information - The company opened a new 40-bed joint venture hospital in Athens, Georgia, and plans to open additional facilities throughout the year [11] - The company has a strong pipeline of de novo projects, with 10 hospitals and 500 beds expected to open beyond 2025 [12] Q&A Session Summary Question: Inquiry about the increase in Medicare fee-for-service discharges - Management confirmed that the increase was not due to strategic actions but rather a surprising shift in payer mix, with Medicare fee-for-service growing faster than Medicare Advantage [24][25] Question: Discussion on employee metrics and hiring plans - Management stated that they remain committed to maintaining an employee per occupied bed (EPOB) ratio of 3.4 and are actively hiring to meet demand [30][32] Question: Concerns regarding supply costs and construction expenses - Management indicated that they do not foresee significant near-term risks related to construction costs or supply chain issues [40][41] Question: Clarification on Medicaid supplemental payments - Management noted that Medicaid supplemental payments are not a significant concern for the company compared to acute care hospitals [45] Question: Insights on labor efficiency and sustainability - Management expressed optimism about maintaining low contract labor levels and improving labor efficiency, although they cautioned that one quarter's performance does not establish a trend [51][52] Question: Discussion on capacity expansion and growth strategy - Management confirmed that they are accelerating their growth strategy through bed expansions and are focused on maintaining high-quality patient outcomes [62][64] Question: Inquiry about the impact of economic conditions on demand - Management reassured that demand for services remains stable regardless of economic fluctuations, as patients require care regardless of economic status [95]