Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RENAULT SA. We currently have 16 research reports from 1 professional analysts.
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Nissan’s profit fall accelerates with yen appreciation
07 Nov 16
Car deliveries increased by a good 3% in both the last quarter and H1 (FYE 31 March) to 1.05m and 2.05m units, respectively. However, as the yen’s appreciation accelerated (its average was up by 9% from April through to May and some 15% from July through to September), Nissan’s revenue fall accelerated from -8.4% in Q1 to -12% in Q2. The same holds true for profits. EBIT was down by 9% to Y176bn in Q1 and by 19% to Y164m in Q2, i.e. expressed in euros it also fell in the last quarter. The company’s respective net earnings were -11% to Y136bn and -16% to Y146bn. As the Q2 net profit fall expressed in yen was similar to the yen’s appreciation against the euro, the at-equity contribution to Renault’s Q3 accounts should have been in the vicinity of last year’s €524m. It had been down by 23% to €749m in H1 16. Nissan’s deliveries fell by 20% to 201,942 in H1 in Japan and 0.3% to 355,466 in Europe but they were up by 8.3% to 1.06m in Nafta and 50% to 203,144 in Asia. Sharply rising volume in Asia has allowed at-equity profits (overwhelmingly from China) to increase by 32% to Y75bn. Simultaneously, exchange losses (including gains and losses from derivatives) fell from Y28bn in H1 15/16 to Y22.6bn. In spite of higher at-equity profits and lower exchange losses, net earnings were down as the operating result was lower (see comment above).
Mercedes-Benz starts pick-up production, but not for Nafta and Asia
30 Sep 16
Daimler’s CEO Dieter Zetsche stated at the Paris Motorshow that the cooperation between Daimler and Renault-Nissan has been expanded during the course of 2016. He focused on four topics: Smart cars will eventually also be available as full-electric cars using Renault’s engines and Daimler’s batteries. The Smart fortwo is to continue to be produced in Daimler’s Hambach/Alsace factory while the forfour is to be produced in Renault’s Slovenian plant along with the Renault Twingo. Daimler and Nissan have laid the foundation for a car plant in Mexico in 2015. Starting in 2017, this plant will produce premium compact cars for the Infiniti brand and from 2018 for the Mercedes-Benz brand. An all-new Mercedes-Benz pick-up will be produced in Renault’s Argentine plant and in Nissan’s Spanish plant. The car will be based on Nissan’s NP300 but, according to Daimler, will look different. It intends to sell the pick-up in all markets outside North America and Asia. We believe that this limitation is a Nissan request and wonder how many of these cars can be sold outside these two regions. A Nissan engine plant in the USA has been producing 2L, 4-cylinder gasoline engines for Daimler since 2014. This plant is currently being expanded to increase capacity. During the last two years, it has produced some 250,000 engines for Daimler and these are used in cars for the Nafta market as well as for Africa. Additionally, engine components are shipped to Germany.
Q2 was superb
28 Jul 16
Renault increased registrations by 18% to 876k vehicles in the last quarter which brought the H1 number to 1.57m, an increase of 13%. Although the ASP was down by a good 2% in Q2, consolidated revenue was up by 15% to €14.7bn (+14% to €25.2bn in H1). This has allowed the group to increase H1 EBIT by 44% to €1.54bn while net income increased by ‘only’ 9% to €1.50bn. All these numbers are better than we had expected.
Strong yen has started to bite into Nissan’s accounts
12 May 16
Nissan’s full-year 2015/16 numbers are reasonable, but the last quarter has shown that growth rates have moderated. This is true for both the delivery volume and revenue number, but in particular for the profit numbers. Management sees revenue and profit numbers falling in 2016/17.
Panmure Morning Note 01-12-16
01 Dec 16
Consistent with the FY16 trading update/pre-close on September 14, today’s FY16 results are in line with our and consensus underlying PBT expectations of £12.5m (+22.5% YoY). The total FY16 dividend is up 36%, covered 3.4x, whilst net cash is £6.9m (+53%). FY16 represented another good year of execution, and FY17 has started well. The company's business mix is now more diverse across geographies (International accounted for 26% of total sales vs 21% in FY15) and we see CCT’s increasing diversity in retail distribution as both a further risk-mitigation and opportunity driver. We make no changes to our FY17 and FY18 PBT forecasts of £13.5m and £14.5m (albeit, we make some changes to the constituent parts) and introduce a FY19 PBT of £15.5m. We maintain our BUY and TP of 635p.
Strong H2 expected
30 Nov 16
H1 results were in line with expectations with PBT of £9.0m, EPS of 9.9p and DPS of 7.2p. The NAV / share is 253p. We expect the company to have a strong H2 based on its forward sales position and the timing of developments coming through. Telford has a strong balance sheet, a large development pipeline and impressive forward sales position, as well as good levels of demand for its product and geography from a diverse group of buyers. No change to forecasts at this stage.
US$500m to be invested in start-ups by 2026
28 Nov 16
BMW started a venture capital fund in 2011 with an initial investment of $100m. This is now to be expanded to $500m within the next ten years. The fund, called ‘BMW i Ventures’, has been moved from NYC to Mountain View, CA, to have closer access to the technology developed in the Silicon Valley. The investment focus will be on Enabling Technology and Digital Vehicle Technology, Mobility and Digital Services, Customer Experience, and Advanced Production Technology. According to BMW, the fund has closed 15 deals in ‘mobility-related’ technologies so far. It typically acquires a minority stake in start-ups which allows it to gain access to external innovations (so-called ‘outside-in’) that secure the company’s role as a technology pioneer. Simultaneously, it provides support for start-ups by offering internal resources (so-called ‘inside-out’) such as technical expertise and access to its own network of an established car producer.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.