Event in Progress:
Discover the latest content that has just been published on Research Tree
The H1 21/22 results were decent with a strong Steel-making segment that exceeded the group’s own expectations and a less performing Plant-making one.
However, the order-book of the latter remained strong.
The group confirms its targets for the current year.
Our numbers look a bit conservative (we will upgrade these) but we believe that our current valuation (TP €23.8) probably does not need to be materially changed given the less favourable context (GDP growth and energy costs).
Companies: Danieli & C Officine Meccaniche (DAN:BIT)Danieli & C. Officine Meccaniche S.p.A. (DAN:MIL)
FY20/21 results came in above expectations
The current great shape of the steel market at large gives decent visibility over 2021/22
The green transition will be an important supporting factor for the Plant-making business
H1 20/21 results showed a marked improvement in margins
This should continue going into H2, given the current positive context in the steel market
The group’s yearly target should be reached, at the least
We will upgrade our forecasts with a positive impact on our target price
The group’s results were very decent in the pandemic context
The Plant-making business has shown its resilience
Steel-making is suffering more, in line with its higher cyclicality
The outlook is rather vague, but we keep a positive stance over the long run
We will adjust our numbers, slightly down over FY20/21
Companies: Danieli & C. Officine Meccaniche S.p.A.
H1 19/20 was weak, mainly due to Steel-making, both on prices and volumes, but a degree of recovery is expected in H2
Plant-making did reasonably well, as should be the case over H2
We have concerns about the negative impact of the COVID-19 outbreak in Italy, which was not even mentioned by the group
The financial communication still looks pretty weak to us
We will downgrade earnings and valuation on a low H1 and our fears concerning the virus impact in H2.
- FY18/19 well in line and even better than guidance
- More needed on the outlook post the FY results comments
- Our numbers/targets are not likely to change much
The release of the FY18/19 outlook is clearly a disappointment, with the group guiding for EBITDA of €220-230m (we had over €260m) on the back of the low-priced contracts signed in civil FY17 (plant-making) and uncertainties on steel prices (steel-making). We will revise downwards our numbers and target price.
Danieli released FY 17/18 results (the group’s closing is 30 June). Revenues reached €2,706m (+9%), EBITDA €228.8m (+13%), EBIT €103.9m (+48%) and the net result-group share €58.4m (+16%). The order-book at the end of June reached €2,954m (+17%). The group’s net cash at the end of FY17/18 stood at €836.7m (vs €912.5m in FY16/17 and €858m in December). The group will pay a dividend of €0.10 for ordinary shares and €0.1207 for saving shares.
The results for H1 17/18 show a significant improvement, mainly due to higher volumes and prices in the steel-making division, while the order book is increasing quite markedly, also in plant-making which we consider as positive for mid-term growth. We will revise a tick upwards our numbers and valuation.
Danieli released FY 16/17 results (closing 30 June). Revenues reached €2,491m (flat), EBITDA €202.5m (-4%), EBIT €70.3m (-22%) and the net result €50.2m (-43%). The order book at the end of June reached €2,532m (-11%). The group’s net cash at the end of H1 16/17 stood at €912.5m (vs €910.2m in December).
Danieli released H1 16/17 results (closing 30 June). Revenues reached €1,158.1m (flat), EBITDA €80.8m (-25%), EBIT €13.3m (-76%) and net result €39m (-14%). The order book at the end of December 2016 reached €2.385m (-15%). The group’s net cash at the end of H1 16/17 stood at €910.2m (+/-0%).
Danieli released FY15/16 results (closing 30 June). Revenues reached €2,508.4m (-9%), EBITDA €211.4m (-17%), EBIT €90.2m (-40%) and the net result €88.3m (-45%). The order book at the end of June reached €2,814m (-5%). The group’s net cash at the end of fiscal 2015/16 stood at €908m (-5%). A dividend of €0.10 per share (€0.1207 for savings shares) will be proposed at the group’s AGM on 28 October.
Danieli released 9 months figures. Revenues reached €1,691.3m (-15%), EBITDA €154m (-11%), EBIT €78.3m (-22%) and net income €54m (-54%). Net cash at the end of March 2016 amounted to €823.5m (vs €841.8m at the end of H1 and €956m a year before). The group’s order book stood at €2,975m (vs €3,026m in December and €3,155m at the end of the last fiscal year.
Danieli’s H1 15/16 results were released. Revenues reached €1,161.1m (-14%), EBITDA €108.4m (-14%), EBIT €55.4m (-30%) and net profit €45m (-32%). Net cash at the end of H1 was €841.8m (vs €956m at year end 14/15 and €881m in Q1). The group’s order book stood at €3,026m (vs €3,155m in June 2015 and €3,094m at the end of Q1). The group confirms the FY16 results should be in line with the forecasts made at the beginning of the year (i.e. revenues of €2,700-2,850m and an EBITDA of €240-260m).
Danieli released Q1 15/16 results (as at 30 September 2015). Sales reached €556m (-15% yoy), EBITDA €51.6m (-22% yoy), EBIT €28.1m (-35% yoy) and the net result €22.5m (-58% yoy). Net cash at the end of Q1 15/16 was €880.5m (8% down from €956m at year end 2014/15). The group’s order book stood at €3,094m (-2% qoq, of which -9% in Steel Making to €154m).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Danieli & C. Officine Meccaniche S.p.A..
We currently have 11 research reports from 2
Today’s trading update for H1 22 highlights the difficult operating environment over the first six months of the year, particularly in Q1. Trading picked up in Q2 and is expected to continue to improve in H2 22, in part, due to the inherent seasonality of the business, but also due to some catch up in demand. Guidance is for FY22 post-tax profit to be in line with the consensus estimate of £32.2m, as a result Zeus reduces its estimate by 2.5% to £32.2m. Previous guidance of £3.0m potential impac
Companies: Strix Group PLC
Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy
Companies: EQT IES DRX NESF PHE SAE
Companies: Crestchic PLC
Invinity has begun trading shares on the OTCQX Best Market in the USA. We see this as adding liquidity for North American investors and more generally increasing visibility for the company in key markets in North America.
Companies: Invinity Energy Systems PLC
Dish of the day
No joiners today.
Leavers: No leavers today.
What’s cooking in the IPO kitchen?**
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports
Companies: UJO FAB HAT HZM SYM TRAC
The US Inflation Reduction Act of 2022 now has a chance of passing the Senate next week as it is being voted under the Reconciliation procedure which allows bills related to the budget to pass on a simple majority rather than the 60-vote majority required to overcome a filibuster. If the act does find its way onto the statue books it will bring US$369bn in clean energy tax credits, grants and other incentives. Much is directed to protecting clean energy manufacturing in the USA, but it is a wide
Companies: IES DRX ITM VLS
Dish of the day
No joiners today.
No leavers today.
What’s cooking in the IPO kitchen?
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
Companies: SDI FUL PURP OSI IXI BSE BRSD ATM
Oil posted the biggest weekly decline since early April on growing signs that a global economic slowdown is curbing demand. Prices are near the lowest level in six months.
West Texas Intermediate settled at $89 a barrel, ending the week nearly 10% lower. US gasoline consumption has dropped, stoking demand concerns, while low liquidity has added to volatility. Supplies from Libya also picked up, helping to shrink key oil futures time-spreads and ease the tightness in the market.
Companies: FO 88E CHAR DEC EME GTC TRIN WEN
Companies: Staffline Group plc
Rolls Royce published mixed figures. Profitability was particularly low, pushing the net result back into the red zone. However, FCF generation was a positive surprise despite the rise in inventory. It has finally found an agreement to sell ITP Aero and will use the resulting cash to repay its only floating interest rate debt.
Companies: Rolls-Royce Holdings plc
Companies: Open Orphan Plc (ORPH:LON)Renold plc (RNO:LON)
Companies: Lok'nStore Group plc
Checkit has released an upbeat H1 trading update that shows ARR continues to build rapidly – up 48% y/y to £10.2m, and so represents another strong period, after +43% ARR growth in FY22. The successful rollout of prior year wins - most notably: Grifols - a multinational pharmaceutical (worth £2.7m/3yrs) has been a key contributor. Meanwhile, further benefitting, CKT has also continued to ink new deals, for instance – expanding its role with Center Parcs (announced in May) and as well, Octapharma
Companies: Checkit plc
Singer Capital Markets
Companies: Belvoir Group PLC (BLV:LON)SDI Group plc (SDI:LON)