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Research Tree provides access to ongoing research coverage, media content and regulatory news on FRAPORT AG FRANKFURT AIRPORT. We currently have 32 research reports from 1 professional analysts.
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FRAPORT AG FRANKFURT AIRPORT
FRAPORT AG FRANKFURT AIRPORT
Frankfurt passenger number up in January
10 Feb 17
This number increased by 1.8% to 4.23m in the last month while the cargo volume increased by 5.8% to 165,835 tons. Lima’s passenger number was up by 12% to 1.68m. Of the at-equity consolidated airports, St Petersburg (+30% to 1.02m) has started to see a strong recovery and Xi’an (+19% to 3.31m) continued to boom. On the other hand, the number of passengers having used the Antalya terminal continued falling (-1.9% to 0.68m).
2016 passenger number just below the previous year’s
13 Jan 17
The passenger number was up by 3.9% to 4.26m in December in Frankfurt which brought the full-year number to 60.8m, a decrease of 0.4%. Lima, the other large fully-consolidated airport, saw its passenger number rising by 7.6% to 1.58m and 10% to 18.84m, respectively. Xi’an (at-equity consolidated) also experienced strong growth (+16% to 3.04m and +12% to 37.0m) while the full-year passenger numbers fell at all other at-equity consolidated airports and terminals (Antalya -31% to 19.0m; St Petersburg -1.7% to 13.27m; Hanover -0.8% to 5.4m). Frankfurt’s number of passengers on European destinations was up by 4.3% in the last month (-0.4% full-year) while those to/from inter-continental destinations was up by 3.5% (-0.3%). Except for APAC, where the passenger number was down in both the last month and full-year, it was up to all other inter-continental destinations in December but also down to Africa in the full-year. The latest numbers indicate that retailers in Frankfurt have also received some support for their businesses lately.
Frankfurt’s passenger number will not be up in 2016
12 Dec 16
The number was up by 4.9% to 4.14m in November which brought the ytd number to 56.53m, a decrease of 0.7%. To reach last year’s number of 61m in the full-year, December needs to show an increase of almost 10%, which is very unlikely indeed. Lima (70% controlled) has been the star performer in 2016 among airports and terminals that are fully consolidated. Its passenger number was up by 7.6% to 1.55m in the last month and 10.3% to 17.26m ytd. Xi’an (24.5% controlled) has also achieved strong growth (+14% to 2.99m and +12% to 33.96m, respectively). On the other hand, political problems in Turkey resulted in a fall of 18% to 0.87m in November and 32% to 18.36m in Antalya (51%). The passenger number seems to have stabilised in St Petersburg (35.5%) with an increase of 20% to 0.95m in the last month but a fall of 3.3% to 12.28m ytd. The latest regional growth numbers in Frankfurt were evenly split between those flying to/from European (+5.2%) and intercontinental destinations (+4.5%). The respective ytd (negative) growth numbers were also quite similar (-0.7% and -0.6%).
Fraport’s new pricing structure
09 Dec 16
The airport operator has received approval to increase fees at Frankfurt Rhein-Main by 1.9% as of January 2017. At the same time, it is able to offer incentives to airlines that open flights to new destinations if they increase their passenger numbers by 3%. Under this condition, the fee for the new destination is reduced by 50% in the first year, by 33% in the second, and by 25% in the third. Management argues that the fee increase and the incentives are necessary to finance the company’s investments in the new runway and the construction of an entirely new terminal. Based on the airlines’ earlier indications, these investments were necessary to cope with rising passenger numbers. However, this number has grown by less than 1.5% p.a. during the last ten years when we assume that the 2016 number is unchanged from last year’s. Consequently, revenue growth would be insufficient without the fee increase. By offering the above incentives to existing and new clients (i.e. airlines), management sees the passenger growth rate accelerating in the years to come. Whether this will allow Fraport not to ask for further fee increases in the future remains to be seen.
Fraport increases fees by 1.9% in Frankfurt but the Ryanair discount is prohibited
05 Dec 16
The company has received approval from the State of Hesse to increase its fees by a total of 1.9% as of 1 Janaury 2017 compared to 2016. It is allowed to grant incentives to airlines for new inter-continental routes and continental routes outside of Germany if the aircraft have low noise emissions. Further incentives are granted if the aircraft is equipped with a ‘Ground Based Augmentation System’ which allows it to approach an airport by flying over densely populated cities. At the same time, the State of Hesse has prohibited Fraport from offering separate discounts to Ryanair.
Passenger number -0.3% in October in Frankfurt
10 Nov 16
The number has fallen to just below 5.7m in the last month which brought the ytd number to 52.4m, a drop of 1.1%. The negative and positive growth rates have also moderated at Fraport’s other fully-consolidated airports like Lima, but all of these numbers were in positive territory. Of the at-equity consolidated airports, Antalya continued suffering from the lack of tourists (-16% to 2.37m in October and -32% to 17.5m ytd) while St Petersburg started to see positive growth in the last month (+8.6% to 1.15m; -4.8% to 11.3m ytd). The regional passenger growth has not changed much in Frankfurt as of late. Those flying within Europe were about unchanged in the last month (-1.1% ytd) while those flying inter-continental were down by 0.6% (-1.0% ytd). This changing passenger mix continues to put pressure on the Retail operations at Frankfurt Rhein-Main.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.
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.
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.