Xylum

The results of Xylum, a leading water supplier, were announced. Both sales and EPS were better than expected. Sales of MCS and WSS increased as demand for smart metering increased in the U.S. and the need to provide solutions based on data centers/industries increased. Sales growth continues in the profitable business, and orders are increasing in the WI and WSS sectors, which account for a high proportion of sales.

It is also a company that is expected to benefit from the U.S. Democratic policy. Former President Trump has also emphasized the need for clean water. The recent adjustment has also eased the burden of valuation. We believe that it is a company with high investment attractiveness as sales are expected to increase due to the expansion of demand for water supply infrastructure in the short and long term.