Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SONOVA HOLDING AG-REG. We currently have 2 research reports from 1 professional analysts.
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SONOVA HOLDING AG-REG
SONOVA HOLDING AG-REG
AudioNova acquisition completed, major short-term headwinds to persist
24 Oct 16
Sonova completed the acquisition of Europe’s second largest hearing aids retailer AudioNova (Amplifon remains the largest retailer in the hearing aids industry), earlier than expected, in September 2016. Sonova acquired AudioNova from the investment company HAL Trust, pipping the likes of WDM (William Demant) and Sivantos. The acquisition brings >1,300 retail stores spread across eight European countries, further fortifying Sonova’s hold on its distribution channel (as a reminder, with >2,000 retail stores Sonova already has the largest retail network amongst the big six hearing aids manufacturers), a crucial requirement in the prevailing pricing pressure environment (William Demant guides for 1-2% ASP decline annually). With AudioNova in the kitty, the share of the retail is set to increase to c.38% (vs 25% for WDM) of total sales (c.15% volume) from the earlier 27% (c.10% volume). From a financial point of view, the deal is expected to be earnings accretive in the first financial year after closure. As a consequence of the acquisition, Sonova has suspended the ongoing CHF500m share buy-back programme (of which CHF229m had been completed to March 2016). Furthermore, for FY 16/17, management sees revenue growth of 4-6% at LC and an EBITA increase of 3-7% at LC (excluding contribution from AudioNova acquisition), below its medium-term target of 5-7% sales (includes c.1% growth from acquisitions) and 7-11% EBITA growth. Separately, in its investors day held recently, Sonova provided an update on its strategy for the next five years wherein the focus continues to be on vertical integration primarily through retail network integration and expansion (to be further supported by continued bolt-on acquisitions), and strengthening its e-solutions across the hearing aids related services spectrum. As a result, management expects retail sales to outpace wholesale (+6-8% compared to +3-5%) in the mid-term. The company also unveiled new products across segments and, more importantly, confirmed that it will be launching a made-for-all (MFA) 2.4GHz based platform in 2017, an urgently needed push in our view.
Sluggish CI (cochlear implants) and forex drive earnings downgrade
19 Jan 16
Sonova’s H1 15 results were rather soft (consensus miss on profitability), dragged down by currency fluctuations (following de-pegging of the CHF) and weakness in the Cochlear implants (CI) business. Sales were up by 6.7% at LC to CHF1bn (+1.3% in CHF), with a strong performance from Hearing instruments (+8.7% at LC; +2.9% in CHF) being partially negated by the protracted sluggishness in the smaller CI segment (-11.2% at LC; -12.9% in CHF). Profitability fared worse with EBITA increasing by just 0.7% at LC to CHF196m (+4.2% excluding non-hedged currency losses on working capital; -9.3% in CHF). Following the weaker-than-expected results, management has downgraded its FY 15/16 guidance (all at LC) – sales growth guidance to 6-8% (vs. earlier 7-9%) and recurring EBITA growth outlook to 7-11% (vs. previous 9-13%).
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Panmure Morning Note 02-12-16
02 Dec 16
We expect CareTech to report FY results to September on 8th December. A positive trading update in October indicated that performance for the year was in line with market expectations therefore we are focusing on the outlook. We expect a confident statement since the end of 2016 showed positive trends across fee rates, expansion in places and occupancy. We believe CareTech is well positioned for further expansion, and remains at an attractive valuation. We retain our BUY and 380p price target.
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.
Panmure Morning Note 05-12-16
05 Dec 16
This week will see Chi-Med present data on both fruquintinib and epitinib at the 17th World Conference on Lung Cancer, concerning two proof-of-concept trials in non-small cell lung cancer (NSCLC). This morning, the poster presentation ‘A Phase I Study of Epitinib To Evaluate Efficacy And Safety In EGFR Mutation Positive (EGFRm+) NSCLC Patients With Brain Metastasis’ is available for investors to view on Chi-Med’s website.
Panmure Morning Note 01-12-16
01 Dec 16
Last month we highlighted the ongoing trajectory of Tuzistra sales, noting the impact of significant investment in the modified marketing strategy for Tuzistra, supported by the step up in sales personnel and increased marketing expenditure. This morning’s AGM statement and trading update gives some further colour on progress.