Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LAFARGEHOLCIM LTD-REG. We currently have 12 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Underinvestment in future growth? No, it's a switch to the cleverest capital allocation!
21 Nov 16
Key information: • Targets adjusted to reflect scope and FX effects. • EBITDA target revised at CHF7bn as expected including CHF200m of additional cost savings. • Cumulative operating free cash flow target of CHF7.5bn from 2016 to 2018. • ROIC improvement of 300bp in 2018 vs 2015 level targeted. • Maintains commitment to 2018 run rate capex of less than CHF2bn. • Dividend proposed of CHF2 per share. Targets of dividend payout ratio of 50% through the cycle. • Up to CHF1bn share buy-backs over the next two years.
LafargeHolcim: Doubts on guidance? Should the pricing strategy be questioned?
07 Nov 16
Key information: • Net sales decreased by 3.1% on a lfl basis in Q3 16 (down by 10.1% on a reported basis). • Adjusted operating EBITDA up 10.5% lfl in Q3 16. • Adjusted EBITDA margin up by 290bp in Q3 to 23.9%. • Operating free cash flow in Q3 improved by CHF826m versus the prior year. • Recurring net income of CHF740m in Q3 16 vs CHF366m in Q3 15. • Full-year incremental synergies target of CHF450m achieved at the end of Q3; at least CHF550m of synergies expected to be delivered for 2016. • Net debt of CHF16.5bn at end of Q3 compared to CHF18.3bn for Q3 15. • On track to achieve full-year targets. • Cement volumes down by 4.2% on a lfl basis (-11.6% reported) in Q3 16. • Aggregates volume down by 2.8% on a lfl basis in Q3 16.
Profitability improvement in Q2, 2018 EBITDA target expected below CHF7bn
09 Aug 16
Key information (Q2 figures): • Net sales decreased by 2% on a lfl basis • Pricing and synergies drove improvements in operating margins and earnings • Adj. operating EBITDA margin up 210bp to 23.4% in Q2. • Adj. operating EBITDA up by 2.6% and 6.0% on a lfl basis in Q2. • But adj. operating EBITDA down by 6.7% and 2.9% on a lfl basis in H1. • 26% increase in FCF. • Net income increased by CHF318m to CHF452m for the first half, but only by CHF92m when adjusted for non-recurring items. • Cement prices up by 2.2% qoq and 0.8% yoy (according to our calculations) but cement volume sales decreased by 3% lfl compared to H1 15. • Divestment target of CHF3.5bn for 2016 to be exceeded. • Like peers, the EBITDA margin growth mostly stems from lower energy prices. • Synergies also played a key role in margin improvement.
LafargeHolcim divests LafargeHolcim Vietnam at an attractive valuation
05 Aug 16
LafargeHolcim announced it has signed an agreement with Siam City Cement (SCCC), which is the second largest cement company in Thailand, for the divestment of its entire 65% shareholding in LafargeHolcim Vietnam for an enterprise value of CHF867m. LafargeHolcim Vietnam operates one integrated plant and four grinding plants with an annual cement capacity of 6.3mt.
Divestment of a stake in a Chinese company at an attractive valuation
02 Aug 16
LafargeHolcim announced it has signed a framework agreement with Tianjin Circle for the sale of a controlling stake, namely 56%, in Sichuan Shuangma Cement for a purchase price consideration of CNY8.08 per share, namely a CHF507m aggregate consideration.
CHF3.5bn divestment programme well on track but rather below our estimates
25 Jul 16
Divestment of Holcim Lanka in mid-July 2016 LafargeHolcim has announced it has signed an agreement with Siam City Cement Public Company Limited for the divestment of its interest in Holcim Lanka for an enterprise value of $400m. This is part of the CHF3.5bn divestment programme. Holcim Lanka is a leading cement manufacturer in Sri Lanka. Divestment of Lafarge India at the beginning of July 2016 In the same way, at the beginning of July, LafargeHolcim has entered into an agreement with Nirma Limited to sell Lafarge India for an EV of $1.4bn. The proceeds will be used to deleverage the group. This divestment is also part of the CHF3.5bn divestment programme. With this deal, two-thirds of the programme has been secured and management expects to meet the target by the end of the year. Despite this sale, LafargeHolcim will still have 60mt of cement capacity in India through its subsidiaries ACC and Ambuja cements, namely c.17% of its cement capacity. The transaction will be submitted to the CCI for approval. Divestment of Lafarge Halla in the beginning 2016 In the FY2015 result release, LafargeHolcim disclosed that it has signed an agreement with a consortium of private equity funds, Glenwood and Baring Asia, for the divestment of Lafarge Halla Cement in South Korea for an enterprise value of KRW560m (approximately CHF465m). This transaction is expected to close in the course of the second quarter 2016 and is subject to customary closing conditions. Lafarge Halla Cement is a leading South Korean cement producer operating one integrated cement plant with an annual cement capacity of 8.3mt. Divestment of the stake in Al Sawa Cement at the beginning of 2016 At the same time, LafargeHolcim disclosed that the it has signed an agreement for the divestment of the group’s 25% stake in Al Safwa Cement Company in Saudi Arabia to El-Khayyat Group for total proceeds of CHF131m.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
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.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
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