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The group posted a very decent Q3 22 report.
Despite some weakness at Rock Processing, the trends remain positive for all three divisions.
The order-book increased quite significantly in Q3 despite the tougher market context.
All in all, the group should reach our targets for the year.
That said, our valuation may look a little optimistic.
Companies: Sandvik (SAND:STO)Sandvik AB (SAND:OME)
The Q2 22 results were pretty decent given the context
They still showed a decrease compared to Q1, mainly due to cost inflation
We will revise down our estimates, mainly in terms of margin for the current year
Our price target will go down, but our recommendation will remain unchanged at this level of valuation
Companies: Sandvik AB (0HC0:LON)Sandvik AB (SAND:OME)
Sandvik released a fairly solid set of numbers.
The impact of acquisitions is relatively significant, as expected.
SMT, to be distributed to shareholders, is now reported as discontinued operations.
The short to mid-term macro outlook is getting more cloudy.
We will fine-tune our numbers (exact impact of M&A and lower short-term organic growth).
The group released FY21 results which came out in line with forecasts
The Mining and the Metals divisions will benefit from a rather strong order-intake
Net debt is still low despite acquisitions
The group looks set to reach its mid-term targets
We will upgrade our forecasts and valuation after this release
The Q3 21 numbers came in slightly above expectations
The order-book rose markedly while logistics issues weighed on revenue growth
Margins proved rather resilient, even if a tick lower than in H1
Even if the group does not issue any guidance, we are reasonably comfortable for Q4
The performance in H1 21 came out in line with expectations
The Q2 21 numbers were very similar to Q1’s at the top line and profit levels
The group still mentions some potential bottlenecks in its operations
We will not change our numbers much after this release
Q1 21 numbers came in line with expectations
Margins are on the rise, after the weaker FY20
SMT is still under pressure
Some bottlenecks may weigh on growth in the next quarters though
No big change to our numbers at first glance, but we remain cautious on organic growth going into Q2/Q3
FY20 results were more or less in line with consensus*
The Machining Solutions and Material Technology segments are still under pressure
The Mining business is doing well, particularly in terms of orders received
The balance sheet remains very healthy thus a SEK2.00 extraordinary dividend on top of the SEK4.50 ordinary one
We do not expect any major change to our forecasts
Companies: Sandvik AB
Q3 shows an (expected) rebound vs Q2
In particular, Mining&Rock Technology did quite well in the quarter
The other divisions are still suffering
The recent share price performance leaves little room for a significant upside
Q2 was tough and the outlook not very inspiring
The group’s exposure to Aeronautics and Automotive suggests there is still some way to go in terms of recovery
In this context, the strength of the balance sheet is a clear asset
We expect corporate action and asset rotation to continue to boost the group’s businesses
Q1 20 is of course down due to the COVID-19 crisis
Despite the lack of guidance, Q2 is set to be worse, notably in SMS
However, we like the margin resilience and ongoing cost-cutting programmes
The clean balance sheet is a clear asset in these troubled times
We will fine-tune our numbers, with little impact on the valuation in our view
FY19 numbers were broadly in line with our and the street’s expectations.
The long-cycle businesses have been doing well, while the short-cycle ones are still under pressure.
Visibility remains low for the latter, explaining our rather cautious top-line expectations going into FY20.
The separate listing of SMT will be another focus for investors in the current year (c.15% of total revenues).
Q3 19 numbers well in line with H1 19 numbers.
Some expected one-offs (efficiency measures), all booked in Q3.
The long-cycle business is going well, while the short-cycle one shows further weaknesses.
All in all, no major changes in our numbers to be expected.
Q2 results are very decent, and margins remain high
However, the order intake was a bit weak in the quarter, due to SMT and SMS
The balance sheet remains very clean, which is not a surprise
At the end of the day, the stock is likely to be capped before visibility improves on the macro front
- the Materials & Technology segment should be isolated
- the aim is to give it higher growth prospects
- a future listing is contemplated, albeit not guaranteed
- this could also open the door to a disposal speculation, we believe
- the impact remains small on the group’s scale
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Strix has issued a trading update today following a disrupted period due to China’s continued Zero Covid policy approach and ongoing macro uncertainty. This has so far restricted business activity for two of Strix’s top five major OEM customers, with further disruption expected. Revenues for the full year will be below initial expectations whilst profitability is impacted more heavily due to the operational gearing in the business. These difficult market conditions see Zeus full year revenue for
Companies: Strix Group PLC
Invinity has announced a record new order, for 15MWh of its vanadium flow batteries (VFB) for Everdura Technology in Taiwan with 255MWh of follow-on-order potential. This marks Invinity's sixth announced sale this year and its fifth in 2H22. For the YtD that brings total firm orders to 37.7MWh, almost 3.5x the previous annual record. The evidence continues to mount that Invinity has a commercially competitive product, yet it trades at well under half the market capitalisation to book value accor
Companies: Invinity Energy Systems PLC
Invinity have announced their largest single battery sale to date through a 15MWh contract with Taiwanese industrial technology company Everdura. This comes on the back of another recent deal in the Taiwanese market, as well as notable sales in the US and Europe. We see sales momentum for Invinity’s flow battery accelerating as renewable penetration increases creating urgency for proven, low-cost, safe Long Duration Energy Storage (LDES) technology.
Calima Energy (CE1 AU)C; Target price of A$0.60 per share: Market cap paid back in 2 years, even after incorporating higher differentials - Four wells out of the five well 4Q22 programme have now been drilled with two wells already in production. Gemini#10 is producing in line with the type curve (IP of 120 boe/d gross and 60 boe/d net to Calima 50% WI). Gemini #11 was put into production on 24 November while Gemini#12 will be brought
Companies: PEN TCFF ALV CE1 HHR ALV RHC RHC SOU EOG ENQ ZPHR IOG PMG NOG SDX CHAR PEN
Companies: Yu Group PLC
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Companies: Currys PLC
Invinity has announced a further sale of its vanadium flow batteries (VFB), this one comprising 2.2MWh of its VS3 model. The purchaser is Bei Ying International Corporation, a Taiwanese industrial equipment wholesaler which is acting as a reseller for Invinity. This brings total sales announced since the interims to 14.3MWh and to 22.7MWh for the year to date. Given the run rate, we believe there is a high likelihood of further sales before year end, confirming solid demand for Invinity's VS3 pr
EAAS has announced its full year results (to June ’22) alongside news that it has secured further debt finance of £2.5m in order to support the growth of the business and strengthen the Group’s balance sheet. Last Friday’s update confirmed a strong start to the new year and reiterated expectations of material year on year revenue and EBITDA growth for FY23. We expect to update our valuation analysis following the upcoming AGM (20th Dec).
Companies: eEnergy Group PLC
Singer Capital Markets
DX Group has reported strong full year earnings; we reinstate our estimates and valuation following the relisting of the shares in October. Trading has been resilient despite widely reported, but now resolved, corporate governance issues. Growth was healthy in DX Freight driven by the 1-Man delivery service, and with higher parcel revenues in DX Express. Current trading is reportedly in-line with expectations, and the medium-term operating margin target of 7.5%-10.0% (FY22a: 5.8%) has been reite
Companies: DX (Group) Plc
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Dish of the day
BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio
Companies: RNO BEM BOIL DOTD NTQ KMK PMG EYE EVG ENET
Energy from biomass or waste can be genuinely low carbon and sustainable, representing a major tool in the decarbonisation toolbox. The ability to add carbon capture technology creates an immediately available negative emissions solution and adding liquid fuels allows the decarbonisation of sectors previously seen as challenging. Demand for all these solutions is likely to grow as decarbonisation and energy security become essential requirements in the energy mix.
Companies: VLS DRX PHE EQT
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