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Sika has published better than expected Q1 21 results with double-digit organic growth observed in all segments. The performance was particularly strong in the Americas, which benefited from volume growth driven by large-scale refurbishment and new-build projects in connection with distribution and data centres. The company has confirmed its 2023 strategic targets, but we believe that the organic growth in 2022 will be beyond the 10% guided by the company.
Companies: Sika AG
AlphaValue
Sika published a good set of FY21 results, but slightly below our expectations. It registered sales growth across all markets, and slightly above our estimates, but the EBIT margin was shy by 60bp and net profit by 2%. Management proposed a dividend of CHF2.9, in line with our estimate.
After successfully closing the integration of the Parex business, Sika has announced its next big acquisition. Valued at €5.2bn, MBCC will be Sika’s largest acquisition to date. The purchase price represents an 11.5x EV/pro forma 2022E EBITDA, which is a cheap buy for Sika which trades at 21.9x EV/EBITDA. The transaction will be highly complementary across nearly all of Sika’s core technologies, applications and solutions and will bring Sika’s sales to nearly CHF13bn by 2023 (vs CHF9.4bn in 2021
Sika published a good set of 9m results with sales up by 18.1% in local currencies and 18.2% in CHF. The America region, China and India continue to show strong demand momentum but the same cannot be said for the EMEA region. The Global segment too is suffering from the semiconductor shortage but Sika was able to manage its top-line figures via frequent price increases and the EBIT by better cost management.
Sika published better than expected H1 results with a positive sales growth observed across all segments. Sales growth in Europe, due to the strong residential renovation trend, came as a surprise, while the strong rally in APAC was expected. Following the good set of result, the company has updated its FY21 guidance. We too have revised our estimates upwards, but it did not have a significant impact on the target price.
Sika has published better than expected Q1 20 results with organic growth observed in all segments. Once again Sika’s acquisition of Parex turned out to be fruitful, being visible by the double-digit organic growth observed in China. Following the strong performance, especially in Europe and APAC, the company has raised its full-year targets. We have revised our numbers upwards.
Thomas Hasler will succeed Paul Schuler as the CEO from May 2021 and, therefore, FY20 was the last full year in the current CEO’s reign. The FY20 results were a good farewell present to him, with growth in all regions despite the pandemic, a significant increase in the EBIT margin, and successful completion of the integration of Parex, which was the biggest acquisition carried out by him. Sika has proposed a dividend of CHF2.5/share and re-confirmed its 2023 strategic targets.
Sika has released preliminary FY20 figures with a growth of 3.4% registered in local currency but strongly dragged down by negative FX (-6.3%). The company, however, outperformed the market expectations by announcing stronger margins (Sika expects the EBIT margin to be ~14% vs AV est. of 13.3% and consensus 13.5%).
Sika has published a good set of 9m results with sales up by 2.6% in local currencies. However, it saw a strongly negative currency effect of –6.0%, resulting in an actual sales decline of -3.4%. The best performer was the APAC region which posted growth of 13.9% in local currencies and 8.3% in CHF and the improvement in Global Business was a positive surprise. For FY20, management has provided guidance of lower sales but an EBIT in line with FY19 figures.
Companies: SIKAN 0Z4C SIKA SIKA SKFOF
Sika published its H1 results which were better than our expectations with a positive sales growth of +2.9% in local currencies supported by the acquisition effect of +13.4%. The EBITDA margin was almost flat. For H2, management is confident of seeing positive organic growth. The 2023 strategic targets are still intact. We will be revising our numbers upwards.
Sika has demonstrated strong growth of 15.4% in sales in Q1 20. This growth was backed by increased pricing, the acquisition effect of Parex, and the late impact of COVID-19 in the Americas and Europe. The company is implementing significant cost-saving methods to deal with the current situation, yet it has dropped its 2020 guidance pertaining to the uncertainties. The 2023 guidance is still intact. Our minor tweaks in the model following this release do not change our recommendation.
The FY19 results were in line with our expectations and the company has reiterated its 2023 targets. Management is confident about 2020 despite the Coronavirus fears in China, and believes that it will be able to achieve 10% growth 2020. It has further confirmed that a big M&A is a possibility as the Parex integration is almost over.
The group has announced its FY19 sales up 14.4%, with organic growth contributing only 3.3%. All regions showed growth with APAC being the strongest. Through five acquisitions, the group has laid the foundations for continued growth. It has set Strategy 2023 where it seeks to grow by 6-8% each year upto 2023. It is also aiming a higher EBIT margin of 15-18% in 2021 while, according to our estimation, it was ~13% in 2019.
Following this earnings release, we will increase our sales forecast and leave unchanged the margin accretion. This will result in a higher target price by some 5-12% depending on our other changes in assumptions.
Sika registered a solid H1 19 but this was mainly thanks to acquisitions as the organic growth was at its lowest level over the last three H1s, with +3.1% vs +6.8% in H1 18 and +5.7% in H1 17. But the disappointing fact is the change in wording about the guidance, which is somewhat a negative. Overall, we will increase the target price by 5-10% in order to switch back to a Buy recommendation, as Sika remains our top pick.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sika AG. We currently have 1 research reports from 4 professional analysts.
Companies: FOG PHC FEN BBSN ELIX
Cavendish
Companies: CLA STM GLN FXPO KAV GWMO CEY BHP THX EEE
SP Angel
Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-
Companies: Headlam Group plc
Edison
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Liberum
AUCTUS PUBLICATIONS ________________________________________ Tethys Oil (TETY SS)C; target price of SEK100 per share: Increasing further the size of the prize/Considering Algeria – The South Lahan area on Block 58 is estimated to hold 55-523 mmbl prospective resources (P90-P10 case) with a mean case of 251.8 mmbbl prospective resources across six prospects in the Ara Carbonate. Combined with the previously disclosed prospective resources of the Fahd area in the north-eastern part of Block 58, Te
Companies: OKEA WDS GALP RHC RHC ENW EOG UJO TRIN I3E SCIR ZPHR SDX CRCL UOG TETY CEG IOX 0EVE CNE VAR TETY VLE GALP OKEA
Auctus Advisors
Quadrise (QED LN) has provided an update on its Utah project with Valkor. Valkor’s partner (Heavy Sweet Oil LLC) has received funding and approval to commence drilling enabling production of 20-40bopd of heavy sweet oil providing QED with samples for production of test scale quantities of MSAR and bioMSAR; the company’s key fuel decarbonising emulsion fuel products. This should derisk the commercial scale ramp up. QED management has highlighted that Valkor has not yet raised the minimum of US$
Companies: Quadrise PLC
VSA Capital
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
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
Companies: Capital Limited
Tamesis Partners
Epwin’s FY23 results show a strong performance in both absolute and relative terms with operating profit increasing 19% yoy to £25.5m (FY22: £21.5m) as the margin expanded 140bps yoy to 7.4%.
Companies: Epwin Group PLC
Zeus Capital
Companies: FOG PEB KBT EMR TIME GETB JNEO
Jersey Electricity (JEL) is intensifying its focus on energy security and electrification across Jersey by creating opportunities to accelerate growth. It successfully navigated the volatile wholesale power price environment in 2020–23, shielding its customer base from the worst inflationary pressures. However, from 2025, as older, more favourable hedges expire, this protection will diminish. Therefore, we have marginally reduced our earnings forecasts to account for the increased exposure to wh
Companies: Jersey Electricity plc Class A
Companies: PLL TLG HZM SAV KAV KP2 SVML
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
Companies: Renold plc
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