Edison Reports on Ocean Wilsons Holdings: Strong Performance in FY23 and Upcoming Strategic Review

On March 26, 2024, Edison Investment Research Limited issued a report on Ocean Wilsons Holdings (OCN), emphasizing the company’s substantial performance in FY23. According to the report, Ocean Wilsons, a company with major operations through its Brazilian subsidiary Wilson Sons, showcased robust results alongside positive outcomes from its investment portfolio. Before this announcement, Edison had valued OCN at 2,564p/share, indicating a significant undervaluation at a 48% discount.

The investment portfolio of Ocean Wilsons generated impressive returns, with a gross return of 10.1% and a net return of 8.9%, surpassing the company’s performance benchmark of 6.4%. These results are attributed to strong performances from sizable technology firms within the portfolio. Ocean Wilsons has strategically broadened its portfolio by incorporating value-oriented funds and increasing the weight of defensive assets, thus maintaining a neutral position. Despite the strategic review being in progress, with completion anticipated in 2024, the report reflects an optimistic outlook for the company, suggesting potential upside risks.

The full report can be accessed for further details on Edison's website.