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.
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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.
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.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
Actual Experience (ACT LN) 2017 – a milestone year for revenue | Bagir Group (BAGR LN) Independent NED appointment to strengthen Board composition | Bioquell (BQE LN) Reassuring pre-close statement | Carador Income Fund (CIFU LN) Q4 dividend increased to 2.75c, 0.5c higher than forecast | FreeAgent (FREE LN) Contract with Royal Bank of Scotland | Halfords Group (HFD LN) Excellent Q3 update, special divi and confidence in FX mitigations | N Brown Group (BWNG LN) Robust peak trading with reversal of drag from older titles | NCC Group (NCC LN) Interims confirm underlying business sound | St Ives (SIV LN) Downgrade | Summit Therapeutics (SUMM LN) Dr David Roblin appointed Chief Operating Officer and R&D President | Wilmington Group (WIL LN) Acquisition – Further scaling of Healthcare