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While Q3 revenues were globally in line with our expectations with, in particular, solid growth at Bouygues construction, the EBIT was better than expected. This good performance was due to Colas whose EBIT was up by 15% yoy in the Q3 while Equans was already posting a 2.7% operating margin in line with the 2023 target of between 2.5% and 3%. We maintain our opinion at Add with 13% upside.
Companies: Bouygues (EN:EPA)Bouygues SA (EN:PAR)
AlphaValue
Q2 revenues were rather in line with our expectations but not so bad on the Construction side, while Bouygues Telecom service revenue was still solid. EBIT was slightly better than expected with an operating loss less substantial than last year in H1 for Colas despite inflation and with the continued margin improvement at Bouygues Telecom. Except for Bouygues-Immobilier (3% of Bouygues’ revenues) and TF1 (4%), things are going rather well for Bouygues. We maintain our Add.
Q1 revenues were up by 46% yoy in reported terms including the Equans contribution, and by 4% lfl and at constant currency. This figure was bang in line with our expectations. EBIT is usually not significant in Q1 but note that Colas saw deeper seasonal operating losses due to inflation while Bouygues Telecom continued to improve its margin. We remain at Add on the stock with 12% upside.
Quite a solid Q3 with revenues slightly better than our expectations (+5.5% yoy at constant currency). The operating profit was more in line with our expectations but, over the first 9m, Bouygues succeeded in maintaining its EBIT margin at the same level as last year. It is still worth holding the stock to hedge against concerns about the coming economic downturn. The stock has recovered by nearly 20% since mid-October and is now flat ytd. We remain at Add.
The Bouygues Q1 was in line with expectations and the outlook for 2022 given three months ago was maintained. The planned acquisition of Equans and the proposed TF1-M6 merger remain on schedule. Note that, since the announcement of the expensive acquisition of Equans, the stock has traded in a narrow range (€31-33) some 10% lower than its range during 2021. We maintain our Add opinion on the stock.
After a strong H1 which had led the group to raise its full-year guidance, Bouygues released this morning a Q3 which was in line with expectations at Bouygues Telecom and Colas but slightly disappointing in the Construction business. This release should not help the stock to recover after the 8% decline it recorded following the announcement of the acquisition of Equans last week. We remain, however, at Add on the stock.
H1 revenues were indeed perfectly flat compared to 2019. Management had been cautious for 2021, anticipating revenues to be slightly down vs 2019. With H1 already being at its pre-COVID-19 level, the guidance is logically raised. The group is now expecting growth in 2022 vs 2019 and no longer a simple return to the pre-COVID-19 level. We remain at Add on the stock.
Revenues were up by 7% and 2ppt above our expectations. Even though revenues of the construction business were slightly below expectations due to adverse weather conditions, Bouygues Telecom’s revenues were better thean expected, leading the group to raise its 2021 EBITDA guidance. As for TF1 and its future merger with M6, although it is positive for TF1 considering the good financial metrics of M6 note, however, Bouygues will pay relatively expensively 11% of the future entity. We remain at A
Q4 revenues were slightly disappointing after an impressive Q3. Note, however, a still impressive sustained growth at Bouygues Telecom (+7.7% in Q4). The 2021 outlook seems quite cautious, particularly regarding the construction business. Remember, Bouygues Telecom has already announced its new strategic plan for 2026 with an expected 4% annual revenue growth during the period and a solid EBITDA margin at 35% in 2026 vs 31% today. We remain at Buy on Bouygues with a 15% upside.
Bouygues released a very good and much better than expected set of results for its Q3. Bouygues Telecom’s performance was again impressive (as if Coronavirus did not exist), while the construction activity rebounded strongly in Q3 (sales down by only 1%). The group, which was expecting to return to profitability in H2 but without reaching the particularly high levels of 2019, now expects an H2 operating profit slightly up yoy. We maintain our opinion at Add on the stock.
Companies: Bouygues SA
The group released a very solid set of results this morning, better than expected on both the Telecom and the Construction sides. Note we are at Reduce on the stock but with a nearly 10% potential upside. If our target price were to be reached the stock would be, however at its price, down by less than 5% compared to its pre-crisis level.
Like in the previous quarter, hats off in Q2 to Bouygues Telecom which, after two years of recovery with global revenues up by 6.5% yoy, keeps going in 2019 with even stronger growth which suggests that its French competitor, Iliad, still has to worry about its own recovery. We maintain our opinion at Buy on the stock.
Hats off to Bouygues which, after two years of recovery with global revenues up by 6.5% yoy, kicks off 2019 with even stronger growth that suggests that Iliad still has to worry about its own recovery. We maintain our opinion at Add on the stock.
A reassuring Q3 (in particular on the telecom side) after the profit warning of 19 October. If we consider the issues on the two biomass plants as a one-off item, the stock should return to the €35 level. We maintain our Add opinion.
Q2 revenues were up by c.7.5% yoy and lfl: quite a correct performance and better than the 2.5% growth recorded in Q1. We remind that the adverse weather in Europe had a strong impact, especially at Colas in Q1. On the telecom side, Bouygues has continued the good momentum of the previous quarters with 7% revenue growth (vs +6% in Q1). The Q2 EBITDA was up by 8.5% yoy with still a good performance from Bouygues Telecom (+12% yoy exactly like in Q1) and a solid 6% growth in the construction busi
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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
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Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
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Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
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discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
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Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
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Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
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Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first
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