史密斯集团：2025年第三季度交易更新初步观点

January 31, 2025January 14, 2025November 13, 2024 Andy Douglas * | Equity Analyst44 (0) 20 7029 8166 | andrew.douglas@jefferies.comDavid Farrell * | Equity Analyst44 (0)20 7029 8407 | david.farrell@jefferies.comVanessa Jeffriess * | Equity Analyst44 (0)20 7548 4123 | vjeffriess@jefferies.comRichard Hill * | Equity Associate+44 (0)20 7548 4540 | rhill1@jefferies.com Company DescriptionSmiths GroupSmiths Group is a diversified engineering business spanning Detection (global leader in detection and screening technologies in airports,ports/borders defence, urban security); John Crane (global leader in rotating equipment solutions to numerous process industries, includingoil & gas, pharma, chemical/petrochemical, power generation, and numerous other end markets); Interconnect (leading provider of technicallydifferentiated electronic components, subsystems, microwave, and RF products that provide secure connectivity to defence, aerospace,communications, and industrial markets); and Flex-Tek (global provider of engineered components that heat and move fluids/gases foraerospace, medical, industrial, and construction end markets). The group has a 170-year history, and in many cases, Smiths is the market leaderin its fields, notably in Detection and John Crane.Company Valuation/RisksSmiths GroupValuation:Our SOTP-driven PT of 1,930p is equivalent to an annualised FY26F EV/EBITA of 10.1x.Risks:Global macroeconomic slowdown,OCC sales growth disappointing (through-the-cycle), change programme having less benefit than expected, raw material/cost inflation, poorlyexecuted M&A, and FX.Analyst Certification:I, Andy Douglas, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations orviews expressed in this research report.I, David Farrell, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report.I, Vanessa Jeffriess, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations orviews expressed in this research report.I, Richard Hill, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report.Registration of non-US analysts:Andy Douglas is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading securities held bya research analyst.Registration of non-US analysts:David Farrell is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading securities held bya research analyst.Registration of non-US analysts:Vanessa Jeffriess is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading securities held bya research analyst.Registration of non-US analysts:Richard Hill is employed by Jefferies International Limited, a non-US affiliate of Jefferies LLC and is not registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and therefore maynot be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading securities held bya research analyst.As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instrument