YB new stock pitches (Thu, Nov 6)

THG Plc (THG.L) is a contrarian investment opportunity with MyProtein driving growth through a successful rebrand, offline retail expansion into major retailers like Walmart, CVS, 7-Eleven, and Costco, plus co-branded deals with top multinationals. The Beauty division is recovering with year-over-year growth improving from -9.8% in Q1 to +4.2% in Q3, benefiting from Beauty being one of the fastest consumer spending categories in the UK. The company benefits from macro tailwinds including the fast-growing strength training market driving protein demand and falling whey input costs as more supply enters the market. Short interest has retreated from 3%+ with 6 firms declared in June to only 1.2% with 2 names, indicating shorts are in retreat. The stock has a price target of 65p+ with potential for private equity bids, as several have already approached and been rejected in recent years, and the shares surged to 48p following positive Q3 trading updates.

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Beng Kuang Marine (BEZ.SI) is a Singapore-listed marine engineering firm that has executed a striking turnaround under a new CEO since 2021, transforming from a capital-intensive, debt-laden shipyard operator into a service-oriented, highly cash-generative business by selling non-core divisions and focusing on higher-margin Infrastructure Engineering and Corrosion Prevention services, particularly FPSO maintenance and refurbishment. The company has cut debt from over S$40 million to just S$8 million while building cash to S$22 million for a net cash position of S$15 million, with gross margins expanding from mid-teens to over 30%, revenue doubling since 2020 to S$111.9 million in 2024, and free cash flow of S$13.6 million exceeding net income of S$11.5 million. Despite this structural transformation into a growing, asset-light services business with sticky revenues from an aging global FPSO fleet, the company trades at a mid-single digit P/E multiple with a current market cap of S$71 million, while applying a 12x P/E ratio to net income implies a value of S$138 million, or S$153 million including net cash, suggesting substantial upside as the market remains anchored to the company's past rather than recognizing its successful pivot to a durable competitive niche with strong financial discipline.

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W.R. Berkley Corporation (WRB) is a property and casualty insurer with a market capitalization of $27 billion that operates through 58 decentralized business units providing commercial insurance, excess and surplus lines, and specialty personal lines across global markets, with reinsurance and monoline excess accounting for about 12% of total revenue. The company distinguishes itself through disciplined underwriting in profitable niche markets that other insurers avoid, maintaining a stable combined ratio of 89-90% over the past three years and earning A+ (Superior) ratings from A.M. Best for 33 of its insurance subsidiaries. WRB has historically outperformed the S&P 500 during the tech bull market, with market cap moving in tandem with total investment values of approximately $22 billion in bonds yielding just over 5%. However, concerns include a problematic $1 billion stock portfolio heavily allocated to overvalued tech stocks and acquisition corps, though hedged with puts of undisclosed strike prices, and limited shareholder returns through minimal buybacks and dividends, with returns primarily coming through earnings growth rather than direct capital allocation to shareholders

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