Q: Hmm.a is a spin off hps.a. would you invest in one or both? If one ,which one and why?
5i Research Answer:
Both companies do have certain tailwinds due to increasing demands for their specialized electrical equipment. We prefer HPS. A due to its slightly better capital-light business model, while HMM.A is quite capital-intensive. HPS.A is also significantly larger. That said, HMM.A is still quite cheap, and could do well if revenue continues to grow at a healthy pace. We are more inclined toward HPS.A, but would also be comfortable holding both.