YB new stock pitches (Feb 10)

Bridge Solutions Hub (BSH.WA), a Polish e-commerce company, has experienced rapid growth driven by its car AC replenishment products, which account for 85% of sales. The company's revenue grew 100% in 2023 and has tripled in 2024, trading at a 5.5x P/E ratio with a 90% ROE and no debt. BSH acquired the ClimaSet brand and production assets in March 2023, followed by AC Fix and Bionic in Q4 2024. The company is expanding into beauty care and pet care products, with talks to acquire Look4Dog. Despite strong growth and profitability, investors should note that co-founder Mrs. Łaszkiewicz has sold 1-4% of her shares. Key risks include maintaining growth, the success of acquisitions, and potential insider selling. With a market cap of approximately $5 million, BSH faces competition from US and European brands in the AC replenishment market but maintains advantages in online presence and cost.

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European Wax Center (EWCZ), the largest out-of-home waxing provider with 75% recurring revenue, is trading at a 15% FCF yield compared to peers at 3%. The company is expected to beat Q4 consensus by 9%+, driven by improved marketing strategies. With a potential for 3,000 centers versus the current 1,064, EWCZ has significant growth opportunities. The stock has a $14/share target, representing 200% upside. Catalysts include the end of tax-loss selling and a potential Q4 beat pre-ICR conference. EWCZ trades at 8x EBITDA compared to historical 18x and peer range of 15-25x. The company plans a 10%+ share buyback and targets high single-digit unit growth and SSS, low double-digit revenue growth, and low-to-mid teens EBITDA growth. Recent issues, including unsuccessful marketing campaigns, are being addressed with a new agency. Franchisees expect 3-10% SSS growth in 2025, and the company's long-term potential remains strong despite short-term challenges from laser hair removal competition and economic factors.

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Alantra Partners, a Spanish financial services company trading at 2.53x P/E, presents a potential 100% upside as its four segments (Investment Banking, Asset Management, Credit Portfolio Advisory, and minority investments) are at cyclical lows. The company's normalized profit is estimated at €35.5M, with €240M in cash and investments. Current market cap is €330M, while a conservative valuation suggests €737M. Key catalysts include recovery in M&A activity, European equities performance, and potential sector acquisitions. Risks involve prolonged downturn in financial services and employee retention. The company's cost structure allows flexibility in adjusting workforce, with plans to reduce headcount to 600-650 employees. Normalized sales projections are €145M for IB, €50M for AM, and €48M for CPA. The stock represents a 3-4% position in the Attitude Small Caps portfolio, offering attractive risk-reward even if sector recovery takes 2-5 years.

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