Elementis PLC（ELM LN）：新Elementis被低估且被忽视；重申买入

FY24Exhibit 2 - The 19%+ FY26F EBITA margin targetwas set in Nov-23 on a 'no-recovery' basis, andthe $12m cost savings target for FY25F has beenreiterated. The departure of Talc should logicallypush this beyond 20%, supplemented by operatingleverage (we note margins were higher yoy in1Q25 despite volumes contracting).(2%)0%2%4%6%8%10%12%14%16%18%20%FY19AFY20FY21FY22FY23Group EBITA MarginTalc EBITA MarginSource: Company Data, Jefferies20262027Exhibit 4 - ELM has the second-highest FCF yieldamong peers in FY25F.2%3%3%4%5%5%7%8%8%8%0%2%4%6%8%10%12%BASSHW CRDA DOW SYNT ASH JMAT EVKVCTELMSource: FactSet, JefferiesELMVCTSHW20%22%24%Exhibit 6 - ELM has rejected multiple bids overrecent years, from both private equity & industry.0p20p40p60p80p100p120p140p160p180pDec-20Apr-21Feb-24Highest reported bidFY1 EV/EBITFY2 EV/EBITSource: FactSet, JefferiesMinerals Technologies, Innospec & KPS Capital Partners FY2411%AKE0x2x4x6x8x10x12x14x16x18x20x Vanessa Jeffriess * | Equity Analyst44 (0)20 7548 4123 | vjeffriess@jefferies.comAndy Douglas * | Equity Analyst44 (0) 20 7029 8166 | andrew.douglas@jefferies.comDavid Farrell * | Equity Analyst44 (0)20 7029 8407 | david.farrell@jefferies.comRichard Hill * | Equity Associate+44 (0)20 7548 4540 | rhill1@jefferies.com Company DescriptionElementis PLCElementis is a speciality chemicals company composed of three businesses: Coatings (rheology modifiers and additives for decorative andindustrial coatings); Personal Care (natural and synthetic rheology modifiers for personal care applications, as well as active ingredients forantiperspirants); and Talc (additives to a wide range of markets, including paper, plastics, coatings, and life sciences).Company Valuation/RisksElementis PLCValuation:Our 180p PT is based on our FY26F SOTP and equates to an FY26F EV/EBITA multiple of 11.2x.Risks:Slow progress on margin target,loss of pricing, continued weakness in end markets, and FX.Synthomer PLCValuation:Our 107p PT is equivalent to an FY26F PER of 7.8x.Risks:Timing of recovery in demand for medical gloves, ability to comply withrevised banking covenants, length of destocking, extended construction downturn, FX.Analyst Certification: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, 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, 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: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: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 o