Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VALEO SA. We currently have 12 research reports from 1 professional analysts.
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Valeo and Siemens start joint-venture
02 Dec 16
In April 2016, the two companies had announced their intention to form a joint-venture in high-voltage powertrains for on-road vehicles. This 50/50 operation is now starting with Valeo contributing its high-voltage power electronics, range extenders, and charging solutions, whereas Siemens supplies the car industry with e-motors and power electronics. The two companies believe that demand for these products will increase by 20% annually through to 2020. As the joint-venture is equally owned by the two companies, neither will fully consolidate the accounts but via at-equity. However, it will be small initially and start with some 1,000 employees.
Valeo intends to increase its Ichikoh stake
22 Nov 16
Valeo holds a 31.6% stake in the Japanese lighting company and intends to increase it to at least 50.09% or to a maximum of 55.08%. It is offering Y408 per share (25% premium to yesterday’s closing price) and the purchase price will be between €61m and €78m, i.e. it will be relatively small. The offer will last from 24 November through to 12 January of next year. The deal will allow Valeo to consolidate Ichikoh fully but will leave a reasonable free float for the listing on the Tokyo stock exchange.
H1 16 has been exceptionally good
27 Jul 16
Valeo’s H1 numbers are clearly better than we had expected. In fact, revenue growth accelerated from +9% in Q1 to +13% in Q2, which brought the total to €8.13bn. Simultaneously, H1 EBIT and net earnings increased by 20% to €647m and by 23% to €422m, respectively.
Non-dilutive cash-settled convertible bond issue
09 Jun 16
To finance some of the upcoming purchase price for the takeover of FTE automotive, the company has issued a $450m convertible bond. The details can be found below. Valeo’s press release: Paris, 9 June 2016, Valeo announces today the launch of an offering of non-dilutive cash-settled convertible bonds due 2021 (the “Bonds”) with a nominal amount of USD450m. As conversion rights in respect of the Bonds will only be cash-settled, the instrument will not result in the issuance of new shares or the delivery of existing shares of Valeo upon conversion. Concurrently, Valeo will purchase cash-settled call options over its own shares to hedge its exposure to pay cash amounts upon any potential exercise of conversion rights embedded in the Bonds. This USD-denominated debt will be immediately converted into euros. The net proceeds of the Bonds offering will be used for general corporate purposes and to finance the acquisitions announced recently. The Bonds will not bear any interest. The Bonds will have a nominal value of USD200,000 per Bond. The Bonds will be issued with an issue price of 100% to 104% of nominal value, corresponding to an annual gross yield to maturity of -0.78% to 0.00%. The Bonds’ initial conversion price will represent an issue premium of 45% above the reference share price for Valeo share, which will be determined as the arithmetic average of the daily volume-weighted´average prices of Valeo share on the regulated market of Euronext in Paris (“Euronext Paris”) over a period of 10 consecutive trading days, starting on 10 June 2016 (the “Reference Period”). The reference share price, the initial conversion price and the initial conversion ratio will be announced by Valeo on or around 23 June 2016. The initial conversion ratio of the Bonds will correspond to the nominal value converted in euros and divided by the initial conversion price. The final terms of the issuance are expected to be announced today, except for the initial conversion price and the initial conversion ratio. Settlement and delivery of the Bonds is expected to take place on 16 June 2016. If not converted or redeemed earlier, the Bonds will be redeemed at nominal value on 16 June 2021.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
Actual Experience (ACT LN) 2017 – a milestone year for revenue | Bagir Group (BAGR LN) Independent NED appointment to strengthen Board composition | Bioquell (BQE LN) Reassuring pre-close statement | Carador Income Fund (CIFU LN) Q4 dividend increased to 2.75c, 0.5c higher than forecast | FreeAgent (FREE LN) Contract with Royal Bank of Scotland | Halfords Group (HFD LN) Excellent Q3 update, special divi and confidence in FX mitigations | N Brown Group (BWNG LN) Robust peak trading with reversal of drag from older titles | NCC Group (NCC LN) Interims confirm underlying business sound | St Ives (SIV LN) Downgrade | Summit Therapeutics (SUMM LN) Dr David Roblin appointed Chief Operating Officer and R&D President | Wilmington Group (WIL LN) Acquisition – Further scaling of Healthcare
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
23% profit growth in FY16 and a positive outlook in FY17 and FY18
18 Jan 17
FY16 results show a strong performance with 9.3% increase in revenue to £267.0m leading to a 23% increase in profitability as adj PBT increased to £40.2m (FY15 £32.8m). The 220bp improvement in gross margin underpinned the increase in profitability as legacy low margin projects continued to fall out of the mix. The 20.2% gross margin was ahead of the 19.5% forecast and in line with Group’s target of generating a through the cycle 20% margin. The forward sale announcements of five developments since the year end provide an increasing level of visibility on both FY17 and FY18, we estimate c. 70% of FY17 gross profit is currently derived from forward sold projects. The announcement on Duncan Road Stratford means the forward sold pipeline is already building into FY19. Current valuation does not reflect the forecast certainty with the shares trading on 9.0x FY17 earnings and yielding a prospective 5.1%.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.