Research Tree | Equity Research for Investors

05 May 21

boohoo group plc (BOO LN) - FY21 Results

boohoo Group has announced results for the 12 months ended 28 February 2021, reporting a strong finish to the year, with performance ahead of ZC’s forecasts, driven by strong momentum in both the UK and USA in the final months of the year. Profit generation has been robust, despite significant cost headwinds resulting from COVID and the impact of a number of dilutive acquisitions made over the year. The shares have traded sideways in recent months, despite the Group’s continued strong trading pe

Companies: boohoo group Plc

30 Apr 21

LIBERUM: Sylvania Platinum* - Another record quarter

Given the stellar performance of PGM prices, it is no surprise that Sylvania have achieved another record quarter with EBITDA of $58.7m and cash balance increasing 52% to $102.1m. Annualising this past quarter, the stock trades on a ridiculously cheap EV/EBITDA of 1.5x. Production of 17.4koz was inline with expectations and guidance of 70koz for the year remains in place. We remain very comfortable on rhodium on a five-year view (see here) and expect the abnormal cashflows to continue (30% FY22

Companies: Sylvania Platinum Ltd.

30 Apr 21

LIBERUM: Futura Medical* - Full EU approval kicks off the start of a rich period of catalysts

Futura received full EU approval for MED3000 this morning following indicative approval last month. This removes the last hurdle to signing meaningful commercial agreements in our view. We have reassessed our sales forecasts to account for its over-the-counter rather than prescription status which drives longer-term upgrades. This more valuable commercial proposition helps to drive an upgrade of our TP to £0.80 (c.80% upside) from £0.68. We expect the start of the US study, regulatory approvals

Companies: Futura Medical plc

06 May 21

Somero Enterprises - Positive trading update: 15% EPS forecast upgrade

The group has released a positive trading update with strong trading seen recently in the US along with signs of recovery in Europe and Australia. It is quite unusual for this conservative company to boost its guidance at this fairly early stage in the year, with raised guidance for FY21 leading us to increase our adjusted EPS by 15%. The shares trade on a discount to peers and offer a premium yield. We lift our price target from 435p to 520p, up 20% and offering decent upside to current levels.

Companies: Somero Enterprises, Inc.

06 May 21

Q1'21: Digital delivering

Reach continues to successfully execute on its enhanced Customer Value Strategy, driving strong top-line momentum in Digital. Digital sales (c.20%/revs) rose +25% y/y in Q1 supported by further growth in registered users (6.2m; Dec: 5.0m), whilst high demand for the Group’s ‘plus’ product portfolio is attracting strong advertiser interest, creating an attractive opportunity pipeline via enhanced monetisation of the Group’s growing first-party consumer interest data pool. In Print revenue decline

Companies: Reach plc

05 May 21

Recovery at ITV Studios, positive reversal in advertising in March

Q1 21 was characterised by opposing trends at ITV Studios and advertising. Revenue recovered at ITV Studios (+9%), while advertising decreased (-6%) due to a high comparative last year and continuing COVID-19 restrictions in the UK. Total advertising revenue turned favourably in March 2021 (+8%) and the positive trend was confirmed in April 2021 and until the end of H1 21 (+26% estimated vs -20% in H1 20).

Companies: ITV PLC

04 May 21

Cenkos: Trinity Exploration and Production Plc -- Strategic Acquisition

Trinity has announced the strategic bolt-on acquisition of a 100% operated interest in the producing PS-4 lease block, onshore Trinidad, for a headline cash consideration of US$3.5m. Strategically located up-dip of Trinity's largest and most prolific onshore block, WD-5/6, PS-4 adds considerable additional opportunity in a licence which has been significantly underinvested in over the last 30-40 years. With 80% of the PS-4 block covered by Trinity's 3D seismic, Trinity will be able to integrate

Companies: Trinity Exploration & Production Plc

04 May 21

Cenkos: Pelatro Plc -- Major framework agreement signed

Pelatro has signed a framework agreement which extends a relationship with an existing customer for three years. This framework agreement deepens and broadens the engagement and is expected to produce higher revenues with the client as a consequence.

Companies: Pelatro Plc

05 May 21

Cenkos: TClarke Plc -- Top line path to growth

The AGM trading update quantifies the current order book position which, at a fully committed £472m, has put on another 3.5% since the end of January. In itself that may look a modest sum but YoY the increase is 23.5% and is a critical aspect of the trajectory towards its medium-term target of £500m revenue (pre-COVID 2019 was £335m). Allied to strong levels of outstanding tenders and pipeline bid opportunities, management's target revenue is becoming more credible and with it the underpinning o

Companies: TClarke plc

06 May 21

AFC Energy (AFC LN) - Feedback post Capital Markets Event

AFC Energy hosted its maiden Capital Markets Event yesterday, giving an excellent summary of its progress in the last year and its prospects. The company is making good progress in commercialising its EV charging product alongside ABB and should be ready for market in 2022. We believe the long-term prospects for the company remain exciting.

Companies: AFC Energy plc

06 May 21

LIBERUM: Virgin Wines UK* - Strong trading leads to upgrades

Virgin Wines has upgraded its sales and EBITDA margin outlook for FY’21E (ending June), driven by continuing strong demand from both new and existing customers over Jan-Apr 2021. The company now expects sales of at least £73m in FY’21E, 4% ahead of our estimates, and an improvement in EBITDA margin (we upgrade +30bps to 8.6%) which leads to a 9% FY’21E EPS increase. We leave FY’22E estimates unchanged for now mindful of the uncertainty around consumer behaviour as lockdowns ease. However it is l

Companies: Virgin Wines UK PLC

06 May 21

WHI First Light: AFC Energy (AFC) - Capital Markets Day

AFC Energy hosted a virtual Capital Markets Event yesterday attended by over 750 participants. The company re-emphasised its key technological advantage, namely, AFC Energy's technology can successfully run on a range of cheaper hydrogen sources including hydrogen ‘cracked' from green ammonia. Based on AFC Energy's market analysis, it stated that on an energy equivalent basis ammonia costs less than one quarter of the cost of hydrogen. Ammonia is a liquid under normal conditions, making it a d

Companies: AFC Energy plc

30 Apr 21

Synairgen - Home cohort Phase II (SG016) results

Headline results from the cohort of non-hospitalised patients were presented from the Phase II trial (SG016) of SNG001 in SARS-CoV-2 infected patients as well as data from the combined analysis of the Hospital and Home Cohort. SNG001 treatment led to a threefold likelihood of recovering to ‘no limitation of activities’ in the markedly/severely breathless COVID-19 patients compared with those on placebo in the home and hospital setting; strengthening the efficacy signal and reinforcing the previo

Companies: Synairgen plc

05 May 21

AB Dynamics (ABDP LN) - Premium valuation, mixed outlook mium valuation, mixed outlook

Following the interims last week, the outlook for earnings appears somewhat mixed. Recovery has been stronger in the Lab Testing & Simulation unit, but Track Testing continues to lag due to COVID restrictions. H2 FY21e and FY22e will benefit from recently acquired Vadotech. However, Group gross margins are likely to be lower with this new activity. Combined with higher overheads, profits are forecast to be squeezed for the rest of this calendar year before reaching pre-COVID levels by end FY22e

Companies: AB Dynamics plc

05 May 21

WHI Morning Comment: i3 Energy (I3E) - Operational and Financial Update

i3 Energy has provided an operational and financial update, which, we believe, is both material and highly positive.

Companies: i3 Energy Plc

07 May 21

IPO of Energy business expected before July

Having released a set of strong figures for Q1, Acciona confirmed that the public offering of the Energy business is on track for completion during the first half of the year. This could give the Spanish group financial muscle to invest massively in renewables. By 2025, the €7.8bn growth in capex is expected to double the total capacity to 20GW. A promising but not risk-free move.

Companies: Acciona (ANA:BME)Acciona SA (ANA:MCE)

07 May 21

Adidas still expects strong growth in China for FY21

Adidas slightly upgraded its guidance for FY21 after a better-than-expected first quarter. The group has experienced healthy growth across all markets despite the prolonged lockdowns in some markets, highlighting the strong 156% sales growth in Greater China. The strong growth in China and the group’s very encouraging guidance for Q2 21 have confirmed our view on the “boycott on Xinjiang cotton matter”. We believe that smaller, easily replaceable brands will be affected more than well-position

Companies: adidas AG

07 May 21

Ability to resist in a very tough environment

Amadeus demonstrated its ability to resist in a tough environment. Q1 21 revenue and EBITDA were in line with expectations and still impacted by travel restrictions. Air bookings and the number of passengers boarded decreased by 60% and 67% respectively. There was a very slight improvement in the trend in March and April 2021 vs the 2019 levels. Despite low revenue (€497m), EBITDA was positive at €54m (excluding the cost related to the cost savings programme) thanks to lower fixed costs.

Companies: Amadeus It Group (AMS:BME)Amadeus IT Group SA Class A (AMS:MCE)

07 May 21

Odd one out?

Unlike its peer Siemens Gamesa, Vestas posted a rather weak set of figures. The result was below consensus all across the board and was lower than our expectations too. Order intake decreased yoy but the order backlog remained strong. Revenues and EBIT both declined despite some positive development in gross profits. However, despite these results, the company kept its FY21 outlook unchanged.

Companies: Vestas Wind Systems (VWS:CPH)Vestas Wind Systems A/S (VWS:CSE)

07 May 21

Robust Q1 performance

Elecnor’s Q1 FY2021 results came in slightly ahead of our expectations. Revenue grew c.8% yoy thanks to projects in both domestic and international markets. The group’s order backlog increased by c.10% from Q4 FY2020 levels with contract wins across geographies — international operations accounted for c.73% of the backlog mix. Management re-affirmed its outlook for 2021 performance to exceed the 2020 levels, underpinned by the robust order backlog along with the essential and strategic nature of

Companies: Elecnor (ENO:BME)Elecnor S.A. (ENO:MCE)

07 May 21

Q1 21 results: resilient performance, in line with guidance

Leonardo published a good set of results with an increase in sales and a good order intake. Profit was also better yoy. Overall, Leonardo is well set to reach its 2021 guidance.

Companies: Leonardo SpA

07 May 21

Market Wrap: London remains upbeat while weaker than expected US jobs growth weighs on Wallstreet

07 May 21

Q1 results: a precise guidance for mid-term growth

SES released a very good Q1 with a strong improvement in profitability and great projects expected to start in 2023, boosting both the top and bottom line. A share buy-back programme of €100m was announced yesterday, as management believes the stock is under-valued.

Companies: SES (SESG:EPA)SES SA FDR (Class A) (SESG:PAR)

07 May 21

Q1 21: last year’s growth drivers - this year’s laggards

Buzzi released its Q1 trading statement with net sales down by 0.8% (+4.5% lfl), the growth driven mainly by Italy, which benefited from the strengthening in domestic demand and an easy comparison base. FX had a significant impact of -5% on sales. Buzzi has reiterated its outlook for the year.

Companies: Buzzi Unicem (BZU:BIT)Buzzi Unicem S.p.A. (BZU:MIL)

07 May 21

Nabaltec - Recovery underway

Nabaltec’s results for the first three quarters of 2020 were blighted by the coronavirus pandemic, which depressed demand for most product categories, particularly materials used by European steelmakers. This resulted in a 10.8% decrease in FY revenues and a halving in pre-exceptional EBIT. Revenues began to recover in Q420. This positive trend has continued into FY21, with management anticipating record highs again by FY22. We expect strong demand for materials such as boehmite, which is used i

Companies: Nabaltec AG

07 May 21

Q1 consensus topped; order book suggests a buoyant year ahead

Q1 21 results came in well above expectations thanks to a vigorous demand in all segments and regions. The favourable price realisation and capacity optimisation more than offset the headwinds in input costs and should keep doing so for the remainder of the year. In all, with a filled order book, CNH is more confident for FY21 and, thus, upgraded its top-line and FCF guidance.

Companies: CNH Industrial NV

07 May 21

Close to pre-crisis levels

The top line has already matched the Q1 19 level, but profitability could not fully catch up, despite the optimised business structure, which might be related to the strongly rising raw material prices. Additionally, management managed the organic momentum of the growth well as NWC outflow remained quite stable. Management has become more optimistic after the clear beat in its Q1 guidance. Figures were slightly above our expectations and beat street estimates.

Companies: Arkema (AKE:EPA)Arkema SA (AKE:PAR)

07 May 21

Soft urology and continence lead to Q1 21 miss

Coloplast reported mixed Q2/H1 2021 numbers. Sales were up 2% on an organic basis, driven by ostomy (+4%) and urology (+3%). Adjusted EBIT was up 2% with the associated margin at 33% (+100bp). FY21 top-line growth outlook was maintained (7-8% organic, 4-5% in DKK), while the adjusted EBIT margin is now expected at 32-33% (vs 31-32% earlier). We do not expect any significant changes to our estimates, as we believe the soft Q2 showing should be offset by stronger H2 growth.

Companies: Coloplast A/S Class B (COLO.B:CSE)Coloplast (COLO-B:CPH)