Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SYNGENTA AG-REG. We currently have 10 research reports from 2 professional analysts.
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Q3 in line. Doubts on the ChemChina offer ?
25 Oct 16
Syngenta released Q3 sales, which reached US$2.524m (-3% both published and at CER) bringing 9m sales to US$9,618m (-6% and -3% at CER). At CER, regional sales (i.e. excluding Lawn and Garden) were down 4% (prices up 3%, volumes down 7%) with a weak South America where the change in sales terms in Brazil (and weak insecticides) weighed again. The group reiterated its full-year guidance of a low single-digit decline in sales, with an EBITDA margin at « around last year’s level ». The group also indicated that they now expect the regulatory process of the ChemChina offer to extend into Q1 17.
Q1 trading statement: rather weak as expected
20 Apr 16
Sales reached US$3.7bn (-7% and flat at CER, with prices up 2% and volumes down 2%). The group indicated it targets to maintain its sales level of last year at CER while profits should benefit from the cost-cutting programme (US$300m in FY16) and lower raw material costs. It also aims to deliver a US$1bn free cash flow, partly on the release of working capital.
FY15 in line. ChemChina offering CHF480/share.
03 Feb 16
Syngenta released FY15 results. They show sales down 11% to US$ 13.4bn (+1% at CER), EBITDA down 5% to US$2.78bn (+16% at CER), operating income down 13% to US$1.84bn and net income down 17% to US$1.34bn. Free cash flow (before M&A) was US$0.8bn. The proposed dividend is CHF11 (unchanged). For FY16, the group aims at "improving profitability on the basis of its AOL programme" (Accelerating Operational Leverage), which is a rather vague statement.
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
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.
VSA Agri Monthly
28 Jul 16
VSA Agri Thought for the Month Leading Brexiteer Andrea Leadsom was appointed Secretary of State for the Department of Environment, Food and Rural Affairs (DEFRA) this month. Perhaps one of the most unenviable jobs in the new UK government, given the importance of EU subsidies to the country’s farming sector. Agra Europe estimated last year that up to 90% of UK farms would not survive without them. Given that the EU Common Agricultural Policy has long been criticised by environmentalists and free-market proponents alike, leaving the scheme is likely to be viewed positively by many. But what comes next? We believe we are likely to see some sort of reduction of subsidies (particularly for the largest farms and most uneconomic activities) as well as greater exposure to foreign imports through additional free trade agreements. We feel a focus on technology and a push for “efficiency” will also be high on the agenda, which could provide a boost to AgTech companies developing products in this area.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.