HLN LN

Haleon plc

Consumer, Event Driven/Special Sit


Presented:03/02/2023
Price:£3.14
Cap:$44.49B
Current Price:£3.81
Cap:$53.37B

Presented

Date03/02/2023
Price£3.14
Market Cap$44.49B
Ent ValueN/A
P/E Ratio27.32x
Book Value£2.91
Div Yield0%
Shares O/S9,234.57M
Ave Daily Vol9,773,019
Short IntN/A

Current

Price£3.81
Market Cap$53.37B
Haleon Plc provides personal healthcare products. The firm focus on consumer healthcare and driven by its purpose of delivering better everyday health with humanity. Its brands are built on science, innovation and human understanding and are trusted by millions of consumers globally. The company is headquartered in Brentford, the United Kingdom.

Publicly traded companies mentioned herein: Haleon PLC (HLN LN)

Highlights

The presenter is long shares of Haleon PLC (HLN LN) a 2022 spin-out/de-merger of GSK (formerly GlaxoSmithKline, plc). Haleon is the consumer healthcare business, featuring worldwide brands in oral health, respiratory, pain relief, digestive health-such as power brands, Advil, Centrum, Sensodyne, Tums, Polident and many more. Post de-merger GSK continues to own 13% of the company shares, while Pfizer owns 32%. The presenter believes the spin-off provides management with an opportunity, outside of the GSK R&D-focused culture, to focus on innovation, marketing, and organic growth of its best and most profitable brands. Their seven best brands are models for what this company can be with organic growth (5%+) driven by price and volume increases, 60% gross margins, and 20% operating margins. While comps trade at 20-25X, HLN currently trades at ~15X earnings, a discount that does not seem warranted long term and gives the investor comfort that downside should be more than 10% while upside could be 35-40%.

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Idea Discussion

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