Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KUKA AG. We currently have 12 research reports from 1 professional analysts.
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Strong order intake but lacklustre operating performance
09 Nov 16
In Q3 16, revenues declined by 1.5% to €710.9m and EBIT was reduced by 3.2% to €36.7m. The EBIT margin, however, remained stable at around 5.2%. EBITDA declined 13.9% to €57.5m and the EBITDA margin dropped from 9.3% to 8.1%. The company, however, reported a strong order intake which jumped 42.1% to €987.5m. The order backlog increased 26.6% to €2.2bn.
Split performance with two types of shares
09 Nov 16
The takeover by Midea is going according to plan. On 16 June 2016, Midea submitted the tender document. All KUKA shareholders received a voluntary takeover bid in the form of a cash offer worth €115 per share. The initial period for accepting the deal ended on 15 July and the extended acceptance period on 3 August 2016. On 8 August, Midea owned 94.55% of KUKA. The settlement and payment for the shareholders who accepted the offer may take until March 2017. The shares which were already tendered are now quoted under the identity number ISIN DE000A2BPXK1. Those shares owned by Midea hovered at around €105, whereas the remaining free float (5.45% of total share capital) hovered at around €75 per share. The identity number of the shares are ISIN DE0006204407. Due to the high level of acceptance, the free float reached 5.45% and, consequently, KUKA shares were delisted from the MDAX.
Mixed results but strong order intake
04 Aug 16
In Q2 16 revenues declined 7.1% to €704.1m and gross profit declined 0.4% to €185.3m. The order intake, however, jumped 28.3% to €893.2m and the order backlog increased 7.7% to €1.9bn. EBITDA plummeted 59.4% to €29.7m and the EBITDA margin declined from 9.6% to 4.2%. EBIT dropped 58.7% to €16.5m and the EBIT margin declined from 5.3% to 2.3%. Net income dropped from €26.2m to €9.5m.
Profit warning ahead!
22 Jul 16
Due to the takeover by Midea, KUKA reported additional costs of around €30m, of which €21m will be booked in the second quarter. The Q2 16 results are due to be published on 3 August. We expect real EBIT to plummet by 42.9% to around €22.8m. The EBIT margin will reach 3%. According to management, order intake reached a record level of €890m (estimate: €693m). We are not quite sure which division reported this strong order increase.
Over and out?!
30 Jun 16
As discussed earlier, Voith’s management had already prepared a takeover offer for KUKA and was taken by surprise when Midea offered €115 per share. According to the press, Midea is only interested in buying a stake in KUKA up to 49% (appeasement policy). Therefore KUKA’s management is looking for large investors and family offices to participate. The only way to attract these investors is to offer an attractive dividend yield of at least 2% or €2.30 per share. For 2015, the company paid a dividend of €0.50. KUKA cannot afford the dividend payment. Therefore we do not expect investors to buy the shares at a price of €115 just to support the 49% threshold self-imposed by Midea. Especially after Brexit, the automotive industry, a major customer of KUKA, will reduce capital spending. In addition, the CFO sold his shareholding in the company completely and the CEO half of his.
Supervisory board is supporting the offer
29 Jun 16
KUKA’s management has signed an agreement with Midea and recommends accepting the offer. The commitment Midea signed will last until 2023 and includes that locations and jobs will be retained. In addition, Midea guarantees the protection of business partners’ data and the executive independence. The stock listing will remain but we believe that the free float will suffer and the MDax listing will be at risk.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.