Capital Protection Certificate on Hoya and Monster Beverage

We see that US rates recently increased giving the opportunity to consider capital protection structured products. The following instrument has only two stocks in the basket with participation coefficient 100% and no cap on the equity price growth in three years.

Companies represent Health Care and Consumer Staples sectors. For Hoya the 10-year CAGR stands at 19%. Additionally, Hoya stock has delivered positive returns in 99% of rolling three-year periods over the last decade. For the Monster Beverage stock, the 10-year CAGR stands at 13%. In 99% of rolling three-year periods over the last decade, MNST has delivered positive returns.

Hoya Corp [Internal score 62/100] is a Japanese company manufacturing optical products for the medical sector. Its current market capitalization stands at $49 billion. The company holds critical monopoly positions within the semiconductor, optoelectronics, and healthcare supply chains. Its revenue structure comprises two segments: Information Technology (40%) and Healthcare (60%). Key growth drivers include rising demand for Hoya’s photomask substrates from hyperscalers, as well as increasing demand from the medical sector.

In the second quarter of fiscal year 2026 (2Q26), the company’s revenue grew by 9.2% yearover-year to $1.6 billion. Net profit for the same period rose by 20% year-over-year to $0.4 billion. EBITDA margin for the past quarter was above 38%. For the past five years FCF of Hoya has been positive. Over the past three years, the share price has increased by 43%, outperforming the TOPIX-17 Pharmaceutical index, which rose by 12%.

Monster Beverage Corp [Internal score 67/100] is a leading American company in the energy drink category, it currently has a market capitalization of $87.6 billion. Together with Red Bull, the company maintains a global duopoly in the energy drink market. Its revenue is divided into the following segments: Monster Energy Drinks (90%), Strategic Brands (6%), and Alcohol Brands (4%). Additionally, Coca-Cola holds an approximately 19.5% stake in Monster and serves as its primary global exclusive distributor.

In the second quarter of 2026, the company’s revenue grew by 20% year-over-year to $2.5 billion. Net income for the same period rose by 17% year-over-year to $0.6 billion. EBITDA margin for the past quarter was above 30% and stayed on the same level for many quarters. For the past five years FCF of Monster has been positive. Over the past three years, the share price has increased by 59%, outperforming the broader consumer staples index (S&P 500 Consumer Staples), which rose by 22%.

The timing is particularly attractive because higher rates now coincide with unusually low equity volatility. The Fed raised rates to 3.75–4.00% on 16 September and its latest projections point to further tightening, while markets are still pricing relatively little volatility ahead of the 27–28 October Fed meeting and the US midterms on 3 November. That creates a useful window to add protection before a busy risk calendar that could bring volatility back.