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Research Tree provides access to ongoing research coverage, media content and regulatory news on BAYERISCHE MOTOREN WERKE AG. We currently have 21 research reports from 1 professional analysts.
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BAYERISCHE MOTOREN WERKE AG
BAYERISCHE MOTOREN WERKE AG
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.
BMW delivery growth almost at a standstill in October
11 Nov 16
The brand increased deliveries by 1.1% to 166,805 in the last month which brought the ytd number to 1.65m, an increase of 5.5%. Simultaneously, Mini deliveries increased by 8.9% to 28,746 and 7.3% to 292,823, respectively. It is the American market that is causing the slow-down. Deliveries in this region were down by 12% to 36,743 in October and by 7.1% to 373,822 ytd. On the other hand, October deliveries continued rising in Europe (+6.4% to 90,574) and Asia (+6.6% to 63,006).
BMW delivered what we had expected
04 Nov 16
The growth rate of car deliveries accelerated to 7.1% (to 583,499 vehicles) in Q3, thus bringing the ytd number to 1.75m, an increase of 6.2%. Consolidated revenue growth also accelerated to 4.6% (€23.4bn) which brought the ytd number to €69.2bn, an increase of 3.0%. These numbers show that ASPs continued falling. The combination of both (i.e. higher sales volume with falling ASP) resulted in EBIT coming in almost flat in Q3 (+1.1% to €2.38bn) and in 9M (+2.2% to €7.56bn). As the ‘other financial result’ turned around from a loss to a profit in both periods while the tax rates were almost unchanged, net earnings were up by 15% to €1.82bn in Q3 and 12% to €5.41bn ytd. All these 9M numbers are some €100m higher than we had expected.
September was a superb month
13 Oct 16
Deliveries of the BMW brand were up by 9.4% to 197,419 and of the Mini brand by 16% to 40,164. The respective ytd numbers were +6.0% to 1.48m and +7.2% to 264,077. On a consolidated basis, monthly deliveries increased by 12% to 121,538 in Europe and by 17% to 71,237 in Asia but they fell by 2.7% to 38,258 in the Americas. These latest numbers suggest that our full-year expectation of a shipment increase of 4.5% is very conservative indeed. This is primarily the result of much stronger than expected growth in China. As a result, we will raise our forecasts. BMW’s model break-down through to September shows disproportionate growth for X1, X3, and X4 models, and the models 7 and 2 did also very well indeed. On the other hand, deliveries of the models 5 and X5 as well as 3 and 4 fell. All combined, we believe that the average unit sales price should have stabilised as of late whereas it was down by around 3% in H1 16.
Europe and China were good markets in August
13 Sep 16
BMW increased passenger car deliveries by 5.7% to 165,431 in the last month which brought the ytd number to almost 1.51m, an increase of 5.5%. Deliveries of the BMW brand were up by 5.0% to 142,554 and 5.5% to 1.28m, respectively, while Mini deliveries increased by 10% to 22,575 and 5.7% to 223,913. Because of the continuing weakness in the USA, deliveries fell by 4.4% to 38,200 in August in the Americas. The ytd number stood at 298,821 (-7.0%). BMW blames a lack of attractive and new products for the setback in the USA while deliveries continued rising in Canada and Mexico, but these markets are tiny compared to the States (each of these two markets is around 10% of the size of BMW’s US market). On the other hand, European deliveries were up by 6.3% to 62,653 in August and by 10% to 685,328 ytd. Asian deliveries increased by 14% to 59,047 and 8.1% to 476,777, respectively. China continues to be the driving force behind these growth rates.
Volume growth continues moderating
10 Aug 16
Deliveries of both the BMW and Mini brands increased by 4.0% to 153,392 and 26,439, respectively, in the last month. This brought the ytd numbers to 1.14m (+5.6%) and 201k (+5.2%). The trend of previous months, i.e. of falling deliveries in the Americas and rising numbers in both Europe and Asia, continued. We expect the group’s car deliveries to increase by 4.5% in the full year. In view of the above, this number continues to be realistic.
Civil: No Reflation here, only a Race to the Bottom
05 Dec 16
The strengthening of the US dollar since the election of Trump is adding to the headwinds in the airline industry: over-capacity and falling yields. The airline industry, which is expected to generate $8bn of free cashflow in 2016 on $600bn of capital employed, needs to spend $120bn annually to maintain current delivery rates. Deferrals and down-gauging is now spreading to narrow-bodies as more and more airlines review their capex plans. We expect acceleration of seat densification as airlines look to sweat their existing fleets. We now expect deliveries to fall by 5% over 2015-18 as opposed to our previous forecast of flat growth. Aftermarket may also suffer as seat densification helps cut number of flights. This leads to reduction in our EPS forecasts for key Civil Aerospace names: Rolls-Royce, Meggitt, GKN and Senior.
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
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - MJ Gleeson - Strong demand underpins full year expectations
08 Dec 16
A positive AGM statement confirms strong demand at Gleeson Homes (queues forming at new sites) and progress on all key metrics. Net reservations are up 20% and the division is now active on 50 sites, up from 48 at the year end. The land pipeline has extended further and now stands at 9,310 plots, providing visibility for many years. A new regional office is planned for Nottingham, in line with the strategy to replicate the unique Gleeson model in adjacent regions. Gleeson Strategic Land also continues to experience strong demand and will have another good year. Full year guidance is reiterated with growth expected to accelerate in H2. Gleeson is in excellent shape with a very positive medium term growth outlook, which, in our view, is not reflected in the current share price.
Short term blip provides an attractive entry point
04 Aug 16
Portmeirion Group has reported their interim results this morning which are inline with our revised estimates. The company has had a mixed first half year but should be well positioned to rectify underlying issues in South Korea and India and hit our full-year numbers. The recent profit warning should be viewed as a blip and should not overshadow the company’s fantastic track record.