Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RENAULT SA. We currently have 17 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.
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.
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 - Northern lights - Shining prospects for 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.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
APPLIED GRAPHENE MATERIALS PLC (AGM LN) | BELLWAY (BWY LN) | GOALS SOCCER CENTRES (GOAL LN) | GRAFENIA PLC (GRA LN) | GRAINGER PLC (GRI LN) | GREGGS (GRG LN) | HARGREAVES SERVICES (HSP LN) | IMMUNODIAGNOSTIC SYSTEMS HLDGS (IDH LN) | INSTEM PLC (INS LN) | KROMEK GROUP PLC (KMK LN) | NORTHGATE PLC (NTG LN) | QUANTUM PHARMA PLC (QP/ LN) | RHYTHMONE PLC (RTHM LN) | SCS GROUP PLC (SCS LN) | SHIELD THERAPEUTICS PLC (STX LN) | SQS SOFTWARE QUALITY SYSTEMS AG (SQS LN) | UTILITYWISE PLC (UTW LN) | VERTU MOTORS PLC (VTU LN) | VISLINK PLC (VLK LN) | ZYTRONIC (ZYT LN)
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
ACTUAL EXPERIENCE PLC (ACT LN) | BAGIR GRP LTD (BAGR LN) | BIOQUELL (BQE LN) | BROWN(N.)GROUP (BWNG LN) | CARADOR INCOME FUND PLC (CIFU LN) | HALFORDS GROUP (HFD LN) | NCC GROUP (NCC LN) | ST IVES PLC (SIV LN) | SUMMIT THERAPEUTICS PLC (SUMM LN) | WILMINGTON PLC (WIL LN)
Another encouraging update reassures FY17 forecasts are intact
20 Jan 17
CCT has released another encouraging trading update, giving reassurance that FY17 consensus expectations remain firmly intact. We particularly note management commentary that the “cash position continues to strengthen considerably”, further adding to the £6.9m of net cash at FY16. This reminds us of one of CCT’s key investment attractions; the highly attractive financial model with low capital intensity provides the capacity for significant cash generation as profits continue to grow, in turn supporting a progressive dividend policy and the continuation of the multi-year share buyback programme. We maintain our BUY.