Rockwool A/S

“Rockwool is one of Europe's best industrial compounders — a specification-moat business with fire-safety regulation permanently restricting substitution, 15-20 years of reinvestment runway from mandatory building renovation, and through-cycle ROIC of 12-15%. The current construction downturn has compressed earnings and the stock has fallen 40% from highs, but at 13x trough forward earnings the market has already priced some recovery, leaving insufficient margin of safety. The thesis is high-conviction; the entry price is not. Target DKK 155-170 for a genuine buy, where normalized valuation offers a 20-25% discount and appropriate compensation for construction cycle uncertainty.”