Polaris Capital Management, LLC on Astor Enerji A.Ş.
Thesis
Polaris rotated into Astor Enerji after selling HD Hyundai Electric at what it considered a rich valuation. Astor is a Turkey-based transformer manufacturer with a large backlog. The switch maintained exposure to power-equipment demand while moving capital away from a holding whose valuation had become less attractive and toward a business with visible backlog support.
“rotating into Astor Transformator Enerji, a Turkey-based transformer producer with a large backlog.”
Key risks
- Backlog does not convert into expected revenue and earnings
- Power-equipment demand weakens