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
Companies: Sandvik (SAND:STO)Sandvik AB (SAND:OME)
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
- Q1 19 in line with the (good) FY18
- The current year is unlikely to show such a high level of earnings growth.
- Acquisitions will continue, since this is both the group’s model and the sound balance sheet enables it.
- After the great outperformance since H2 18, we expect a more moderate one.
- We’ll revisit our forecasts/valuation, which are probaby slightly too low at the moment.
Sandvik reported FY18 results showing record profits and revenues
Order intake reached SEK102.4bn, +9% yoy change, led by the Mining division, and SEK25.6bn in Q4 18, corresponding to +6% yoy growth.
Revenues reached SEK100.1bn, +11% yoy and SEK25.96bn in Q4 18, corresponding to +9% yoy growth.
The adjusted operating profit reached SEK4,700m in Q4 18, corresponding to an 18.1% margin, and SEK18.6bn in 2018, corresponding to an 18.6% margin.
The adjusted EPS reached SEK2.62 in Q
Sandvik reported a strong set of results in Q3 18 in all metrics: order intake, revenues, EPS and cash flow generation. The positive is that all three business units contributed to the performance and, geographically speaking, all areas delivered growth including China. Therefore, after the market correction, it may be time to reconsider the stock’s attractiveness.
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Companies: DX (Group) Plc
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Seeing Machines has announced that it has been selected as the DMS supplier for automotive programmes through Magna International worth cA$120m and a fundraise of at least US$40m at 11p.
The funds will be used to accelerate growth in the rapidly expanding DMS technology market, across all transport sectors globally. This includes the acceleration of the development of new core software and system features, acquisition of additional specialised technology, expansion of sales channels and produc
Companies: Seeing Machines Limited
Seeing Machines has announced results for its financial year ended June 2021 and, after the 3 August 2021 trading update, there were few surprises in the numbers with the company trading ahead of expectations in terms of margins and cash. This reflects the successful focus by the management on reducing costs and conserving cash. However, with the conclusion of the recent fund raise, we expect the company to change gear to investing in the business and managing for longer term shareholder value.
Whitelee windfarm hydrogen project funding
Companies: ITM Power PLC
The oversubscribed placing to raise £25m and £2m open offer leaves Velocys well placed to move forward on its reference projects and strengthens its ability to address further demand as airlines increasingly seek out sustainable fuelling solutions. We have updated our forecasts for the raise and after a review of project timings. These show that if the company can progress its projects, it is capable of being cashflow positive in FY 24 without recourse to further funding. Our DCF based central c
Companies: Velocys plc
While there remains considerable uncertainty over the planning and permitting of the Uskmouth power station conversion there have been a couple of recent pieces of good news for SIMEC Atlantis in our view. Inclusion of waste-to-energy in the carbon capture support model is potentially positive for Uskmouth and may increase its political attractiveness to the Welsh Government as they consider permitting. The ring fencing of CfD support for tidal steam in the next allocation round opens up the pos
Companies: SIMEC Atlantis Energy Ltd.
The Whitelee project to which ITM is supplying its PEM electrolyser technology has won £9.4m of government funding. We see this project as a key demonstration of the value of co-locating hydrogen production with renewables and indicates a wide market for this key energy storage solution.
Macfarlane Group, the leading protective packaging solutions specialist, servicing clients across the UK
and now emerging into Continental Europe, has issued a trading update this morning (25 November)
covering the period since end June and the year to date. Trading has continued to be robust in a difficult
supply chain environment and the Group now expects to exceed its previous expectations for the full
year. Sales growth for the year to date has accelerated through to October at rate of +2
Companies: Macfarlane Group PLC
The H1 results were a bit of a double check. First, how high hopes (battery materials) persist in a rapidly changing environment, something already communicated to the markets. The second, and a rather annoying one, was how to deal with the issues as management was not really transparent. This explains the strong miss in EBIT compared to the consensus. We were also wrong-footed as our impairment figure was far too low.
Companies: Johnson Matthey Plc
Like Taylor Maxwell before it, management's patience and persistence has landed another prized target, this one HBS NE Limited trading as HBS New Energies and UPOWA, giving Brickability a platform into the fast-growing renewables energy products market. It is Brickability's 13th acquisition in the past three years, will cost a maximum £5.5m and falls within the group's target 4-6x EV/EBITA purchase range thus enhancing earnings whilst broadening the product offering to its core housebuilder cust
Companies: Brickability Group PLC
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What’s cooking in the IPO kitchen?
Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Oil prices suffered one of the largest ever one-day plunges, crashing more than 11% on Black Friday as a new coronavirus strain sparked fears that renewed lockdowns will hurt global demand. The crash, the 7th largest ever for Brent crude, the global oil benchmark, may prompt the OPEC+ cartel to re-consider its policy when it meets next week, with the group increasingly leaning toward pausing its output hikes. The sell-off was amplified by low liquidity on a festive day in the US, the breach of s
Companies: FO 88E DEC EME GTC TRIN UOG WEN
The trading update confirms that TClarke is on track to meet FY21 expectations signalling a strong recovery from the pandemic-hit 2020 with revenues +47%, H2 margins back at 3%, underlying EPS +50% and net cash of c£5m in the year-end balance sheet. The highlight, in support of its target £500m turnover by 2023, is continued improvement in the order book, currently at £525m (end June £503m) including a record £320m (+25%) secured for a year out. This is not ‘being bought' but comes with a real s
Companies: TClarke plc
LTHM announced exceptional results for H1F22 ended 30 September 2021. H1F22 revenue reached £193.9m, +81.2% over H1F21 of £107m. This is notably a stellar first half driven by demand-supply imbalances in global markets that have resulted following the pandemic. Resulting PAT of £26.6m translates to EPS of £1.335 vs. £0.256 in H1F21.
Companies: James Latham Plc