YB new stock pitches (Mon, Apr 13)

VEEV: Leading vertical SaaS for life sciences w/ GxP-ready regulatory workflows creating high switching costs. Divorcing Salesforce by 2030 eliminates ~15% CRM royalty, improving margins. Embedding agentic AI across clinical, regulatory, quality workflows adds usage-based revenue layer + deepens moat. FY25: 74.5% gross margin, 25.2% op margin, 26% net margin. 3Y PT $371 (+107%), 5Y PT $513 (+187%) despite trading 9.4x EV/Rev vs 4.1x peer median—premium justified by clean SaaS model, net cash, mission-critical platform. Risks: customer concentration, life sciences spending cycles, cyber threats.

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Aker ASA (AKER.OL) is a Norwegian conglomerate with oil & gas and AI infrastructure assets, trading at a small discount to NAV, in which the investor initiated a new small position. The investment thesis centers on Norway's unique energy position: it is the most electrified country globally, generates almost all domestic electricity from hydropower with growing wind power capacity, and is positioned to become a net electricity exporter. Norway exports the vast majority of oil & gas it produces since domestic transportation is largely electrified and electricity is generated from hydro and wind, creating insulation from energy shocks while being located on a wealthy continent dependent on energy imports. The investor believes we may be entering a multi-year or multi-decade era of global instability causing disruptions, with most European countries being large energy consumers producing little domestically and therefore at risk of dramatic energy price swings from geopolitical events. Additional risks include potential US presidential action to limit or halt O&G exports during crises to protect against domestic economic threats, which would exacerbate price effects in Asia and Europe. The investor's concerns about oil disruptions in the Middle East and within Russia as Ukraine's strike capabilities improve have materialized faster than expected, reinforcing the thesis for stable energy suppliers like Norway.

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The Hongkong and Shanghai Hotels (0045.HK) owns the Peninsula Hotels brand and trades at 0.3x book value with a price target of $25.98 versus the current $5.90, representing a 77% discount to adjusted NAV of $25.98 per share. FY25 revenue grew 11% to $972 million, adjusted EBITDA jumped 42% to $221 million, and cash from operations surged 69% to $107 million, driven by hotel improvements and ramp-ups in Istanbul and London. The company operates 12 luxury hotels across the U.S., Europe, and Asia with high brand awareness but low utilization, and new CEO Benjamin Vuchot from LVMH is shifting strategy toward an asset-light model focused on management fees, branded residences, and expansion into Middle East locations and resorts rather than capex-heavy hotel builds. RevPar growth was strong across all regions: USA +13%, Asia +18% (led by Tokyo), Europe +14%, and Greater China +8% (with Hong Kong benefiting from long-haul traffic). The company also owns commercial properties including Repulse Bay residential ($2.3 billion value), Peak Tower retail ($222 million), and Saint-John office building ($126 million at 80% occupancy), plus the Peak Tram tourist attraction with 7 million annual riders. Debt stands at $1.6 billion (23% of asset value) with a 3.9% interest rate and 1.9-year maturity, positioned to decline as new builds complete. Key catalysts include potential dividend resumption, selling commercial properties worth $2.5 billion to reduce debt and fund a large dividend, or spinning off either the hotel business or commercial properties to unlock the 77% NAV discount. The conservative upside case assumes a re-rating to a 40% NAV discount (normal for hotel REITs), implying 164% upside, while the asset-light model should increase return on capital as the Peninsula brand expands from 12 to potentially 24+ hotels by 2035 through management contracts and branded residences requiring minimal capital. The Kadoorie family owns 72.3% of shares, limiting buyback potential but making strategic changes possible with board approval.

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