OTIS - Quercus Fund - Tianjin Development Holdings: How Is The Portfolio Growing

2024-06-11 22:55:00 ET

Summary

• Tianjin Development Holdings has a 16.5% stake in Otis China, with a focus on growing elevator maintenance service contracts.
• Otis China's portfolio has grown significantly, with a goal of reaching 2.8mm units globally by 2028, driven by strong service revenue.
• Despite a low P/E multiple and strong financial position, there is still a risk of losing money, but patience is key for long-term growth.

The following segment was excerpted from this fund letter.

Tianjin Development Holdings ( OTCPK:TJSCF )

As you may recall , its most significant asset is a 16.5% stake in Otis China. Last February, OTIS Worldwide presented its Investor Day, which has been happening every two years since it came back to the markets as a stand-alone company (it was part of a conglomerate, United Technologies, for decades)....

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