Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Strong Orders And Large Markets Keep Hollysys Moving Forward

The combination industrial automation and train signaling/control story that is Hollysys (NASDAQ:HOLI) continues to improve. Building on solid share in its existing businesses, Hollysys is adding products and targeting end markets that should billions to its long-term addressable opportunity. Although the stock has doubled the return of the S&P 500 over the past year, the company is still largely unknown and the prospects of many years of strong revenue and FCF growth still argue for owning these shares.

Another Strong Quarter

Hollysys delivered a strong fiscal second quarter without any particularly glaring points of concern.

Revenue rose 76% as reported, with the rail business up 157% as the company converts orders to sales. The industrial automation business was...

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