Heidelberg Materials weaker earnings, Japan and Global market drops
Heidelberg Materials reported 10B euros of revenue for the first half of 2024 which is 4.6% lower compared to same period of 2023. Net Income is at 574M euros which is 20% lower compared to first half 2023. The decline is attributed to lower volume as well as higher cost of materials which is typical while high interest rates are sustained.
Impact to Portfolio
$HEI.DE (HeidelbergCement AG) have 3.7% share in the overall portfolio currently in 6% gain mark. It is a position with the EU Infrastructure sector in preparation to reflation and recovery stage after the high inflation environment. I like Heidelberg Cement of the lower valuation (9x PE) and high dividends (3%) which is ideal for medium to long term hold.
Japan and Global Market drop
We encountered weakness in the overall market after the US jobs market and Japan Interest rates hike. The sentiments are also dampened by the reported liquidation of AAPL share by Berkshire Hathaway (50%) in exchange for government securities position. Nikkei 225 fell as much as 12%. Based on my previous experiences in market crashes, it is best not to panic, avoid unnecessary big moves and stick with the strategy. We added shares of Digital Realty Trust, Vietnam Opportunity Fund, and Vinci S.A the past 2 weeks of overall market decline.... Show More
