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Q4 closed in line with expectations LU-VE reported results broadly in line with consensus. Sales were up c1% and the company saw strong growth from industrial cooling in Q4 (+c60%), while the special application segment was slightly up and A/C and refrigeration were both down DD (with likely weaker HP and commercial refi). Adj. EBITDA increased 5% in Q4, with growth driven by c40bps of margin expansion chiefly due to self-help. Net debt closed at EUR 126m and was down QoQ with lower working cap
Companies: LUVE (LUVE:BIT)LU-VE SpA (LUVE:MIL)
BNP Paribas Exane - Sponsored Research
Q2 23 results were in line In Q2 there were no surprises from the release. Sales (of EUR 168.9m) were in line with last year. We estimate organic performance was flattish with positive pricing (up LSD) almost offsetting slightly negative volumes. In the quarter, we saw a divergent performance across businesses with strong Air conditioning (ie HP) and Industrial cooling, helping to cope with weak special applications (ie appliances) and still subdued (commercial) refrigeration. EBITDA was stable
With momentum improving in H2 and top-line accelerating in 2024/25e, we see LU-VE as well-positioned to deliver HSD sales CAGR with expanding margins. Market share gains in the US and booming demand for heat pumps in EU should support the growth story. LU-VE trades at c12x 2024e EBIT, a c40% discount to its HVAC/R peers. EU heat pump growth is far from cooling... LU-VE looks best positioned to benefit from the EU push on building decarbonisation. We forecast the EU business to grow at HSD CAGR,
Stable Q1 despite a challenging comparison base LU-VE posted a soft start in Q1 mainly due to a tough comparison base. Sales of EUR 151.4m grew by c2%, mainly driven by Air conditioning (+75%) more than offsetting a general weakness of the other applications. Adj. EBITDA was stable YoY at EUR 19.2m (overall in line with BNPPe) with a 12.7% margin (ie same level as last year). Price/mix and volumes more than offset the cost inflation. That said, the result was impacted by EUR 1.9m one-offs (due t
4Q 22 overall in line with orders starting strongly in 2023 In FY22 LU-VE posted 2% beat on (Reuters) consensus EBITDA with results overall in line with our estimates. In Q4 22, the company generated c.13% sales increase and we estimate organic growth was HSD vs c.17% BNPPe due to lower than expected volume and pricing contributions. In Q4, adj. EBITDA was almost in line and came in at EUR c.17m, implying a 11.1% margin which is not far from last year (11.7%). FCF generation was slightly below o
With improving macroeconomics and reduced political noise, we selected four names across the Italian Sponsored Research space - ALMAWAVE, SALCEF, CEMENTIR and LU-VE - that offer a combination of sound growth, potential margin expansion, healthy BS and MandA momentum. Better macro and lower country risk brings Italian Mid and Small caps back on the radar Following a challenging past year for Italian MidandSmall Cap equity performance, a more benign macro backdrop, easing consumer concerns and ea
Companies: LUVE AIW CEM SCF CEM LUVE
9M 22 results came in line In 9M 22, LU-VE posted a set of results in line with our estimates. Sales increased by c.28% YoY at constant perimeter. We estimate a DD increase in volumes and almost 20% contribution from prices. It is worth highlighting the strong performance of the Air Conditioning application (with heat pumps up by 150%), while the US business doubled. Looking at profitability, the reported EBITDA of c.EUR 60m was substantially in line with our estimate, despite EUR 2m of incremen
Megatrends feed long-term growth prospects... Yesterday LU-VE hosted an Investor Day, shedding light on the megatrends that are likely to support the group''s growth ambitions. We discussed these dynamics in our latest in depth note (LU-VE: Cold Rush). Growth and increasing sustainability in cold chain and heating electrification are the main factors supporting LU-VE''s organic development in the near future. By region, the EU remains at the core as it is benefitting from the increasing penetra
Elections confirm polls, with the right-wing coalition winning a majority of seats The Italian elections resulted in the right-wing coalition led by Giorgia Meloni of the Brothers of Italy winning a majority of seats in both lower and upper chambers, though far from the 2/3 needed to change the constitution. The new government will officially start in the week of Oct 10th, and after an initial phase of selecting ministers, it can begin effectively governing from early November. Thus, we may ne
Companies: SAB LUVE FNM IRE MN SES HER AIW IF TIP FNM IRE GHC CEM IGD WIIT COM SAB IF UNIR SCF CEM ILTY MN LUVE IGD TIP HER SES ORS
H1 22 results showed strong profitability In H1 22 sales grew by +39.9% YoY with organic figure of c.36% (BNPPe) which was the result of c.25% increase of the price list, while the rest came from volume/mix. Profitability was well ahead of our number. LU-VE posted 13.2% EBITDA margin (vs BNPPe of 12%), implying EUR 42.1m of EBITDA (+c.59% YoY) which was 12% above our estimate. Pricing power continues to protect profitability with the positive impact of the price hikes and volumes, more than offs
Though macro fears are looming, we also find opportunities. Of the 18 stocks we cover under Sponsored Research (SR) agreements, we have selected four companies to navigate the next few months: LU-VE, Orsero, Hera and Sesa, offering a combination of structural growth, no/low gas/energy risk, cheap valuation, upside to consensus and specific catalysts (MandA or self-help). Gas price is the key issue in Italy - screenings With natural gas and electricity prices being the biggest concern impairing
Companies: 0QHK 0RQV HER LUVE HER SES ORS
LU-VE benefits from two long-lasting trends, namely the development of a stronger, more sustainable cold chain and booming heat pumps. These two combined forces have pushed its growth above other component makers (e.g. CAREL, BELIMO) and should support further rerating. Earnings momentum remains strong: 2022-24e adj. EPS up by c.14% The growth story is far from cooling and our analysis suggests that demand is accelerating across LU-VE''s end-markets. In this note, we take the opportunity to refr
Companies: LU-VE SpA (0RQV:LON)LU-VE SpA (LUVE:MIL)
Strong margins in H2 21, even if cash generation suffered from inventory build-up In Q4 21, organic sales growth was close to 30% (already disclosed in January). In H2 21, EBITDA margin strongly expanded to 13% (vs 11.3% in H2 20) despite higher selling prices almost completely offsetting the higher sourcing costs (''only'' EUR0.5m net negative impact at EBITDA level). In H2 21 LU-VE reported a c. 14% price increase. Net debt was EUR122m, slightly higher than previously expected (EUR101m) due t
H1 results show very strong organic growth and margin expansion LUVE posted 19.4% organic sales growth (16.8% reported), of which 15.4% was volume growth and 4% was driven by price hikes reaching a level 5% above H1 19 on an organic basis. Growth was driven by the BU Components with +29% while Cooling systems grew by +6%. Refrigeration grew by 26% and special applications by 35%, while air conditioning was flat and industrial cooling declined by -18%, impacted by slowing ''district heating'' pr
Q1 21 sales were solid and the backlog mirrors an underlying acceleration ahead LU-VE reported last week that sales of products increased by +4.2% YoY in Q1 2021 (in Q1 20 organic growth was flat, thus representing a tough basis of comparison due to a very strong Jan-Feb 2020). More importantly the backlog was up +12.3% YoY (in Q1 20 it grew organic by c. 19% YoY) and reached a new high of EUR99.5m. This may be due to the recovery of underlying demand and the increasing orders received by the c
Research Tree provides access to ongoing research coverage, media content and regulatory news on LU-VE SpA. We currently have 23 research reports from 2 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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