DP DHL reported an excellent set of figures in Q1. A recovery in air and sea freight volumes, robust demand in B2C eCommerce activities and an ongoing recovery in the B2B business led to such an outstanding quarter. All divisions recorded a jump in profits on the back of high margins. Given such a strong result, the group revised upwards its FY21 guidance, which was also above expectations. We expect 2021 to be a strong year for the group.
Companies: Deutsche Post AG
DP DHL confirmed its strong preliminary Q4 and FY20 results today. The group exceeded its own re-raised guidance targets on the back of sustained momentum from eCommerce. As a result, both DHL Express and eCommerce Solutions registered solid growth. Other divisions, too, did well, except for Supply Chain solutions, which saw some recovery in Q4. The group generated record FCF in FY20 and will propose a dividend of €1.35. Moreover, the group will also launch a €1bn share buy-back programme.
Deutsche Post DHL confirmed its positive preliminary figures in its Q3 release today. Favourable business developments in Parcel, Express and e-Commerce Solutions enabled the group to register good growth in revenues and even better growth in EBIT. Additionally, the group not only confirmed its increased guidance but raised its FCF expectations even further.
DPDHL posted its final Q2 20 results. Management confirmed the new FY20 outlook unveiled a month ago and kept its 2022 guidance unchanged.
DPDHL reported a good set of FY19 results, with figures broadly in line with expectations in all lines. Both Express and P&P were the main growth drivers. A good surprise was in the dividend proposal of €1.25, reflecting a payout ratio of 59% (dividend yield of 5.5%). 2020 guidance was reaffirmed, but does not include any impact from the COVID-19, which looks like being too optimistic; the main reason is the complexity of quantifying it at this stage.
DPDHL reported a very good set of Q3 figures, with notably a solid organic revenue of 3.7% despite the challenging environment. This performance was driven by Express and P&P which benefited from the price hike in mail activities since July. Management confirmed its full-year guidance. We confirm our positive opinion on the stock.
As part of its Capital Markets Day, DPDHL presented its new plan called Strategy 2025 with new 2022 guidance and long-term divisional targets. We consider the 2022 targets are conservative, especially regarding the EBIT guidance based “on a cautious macro scenario”. The market reacted negatively as this clearly reflects slower EBIT growth between 2020 and 2020. The transformation is underway and appears to be on track. Patience is required. Buy rating confirmed.
DP DHL reported a good set of Q2 results. All divisions contributed to organic growth which has strengthened management’s confidence. With more clarity on the mail pricing regime, the management has now tightened the EBIT guidance for the full year. The productivity measures implemented by DP DHL are on track.
DP DHL reported Q1 results in line with expectations. The strong EBIT level was boosted by the recent supply chain deal and therefore, adjusted for this, profitability would have been much lower. The Express business is the growth driver for DP DHL, but it is also the most exposed to an economic downturn and/or political tensions. DP DHL is on track to be back in the race, but it is too early to say that headwinds are behind.
DP DHL reported encouraging results roughly in line with consensus expectations. Once again, the good performance was driven by the Express activities while PeP continues to drag due to the ongoing restructuring measures but, they are on track with significant progress in all three pillars, i.e. pricing measures, direct (productivity) and indirect cost (restructuring). The outlook for 2019 is relatively cautious but, in line with our estimates. DP DHL remains a quality stock, in our view, though
Q3 key highlights:
Revenue increased +1.4% to €14.8bn, thanks to all divisions
The EBITDA margin stood at 8.2%, while the EBIT margin declined to 2.5% (-320bp)
FCF declined due to higher capex (excluding leases assets)
2018 and 2020 guidance confirmed
DPDHL has announced the establishment of a new business division called DHL eCommerce Solutions. The new division will include the DHL Parcel Europe and DHL eCommerce business units which were part of the Post-eCommerce-Parcel (PeP) division with the intention to promote even more strongly the eCommerce operations of DPDHL in an international context. PeP will be renamed Post & Parcel Germany and in the future only act in the German market. Ken Allen takes over responsibility as CEO and Board Me
Group revenues increased by 1.4% to €15.02bn; after adjustments for adverse FX effects and the Williams Lee Tag disposal, Deutsche Post reported a continued strong organic growth of +6.2%. EBIT, however, decreased by 11.2% to €747m based on the operating performance in the PeP division and the first measures to counterbalance this development. The EBIT margin fell therefore from 5.7% in the last quarter to 5.0% in Q2 2018. EBITDA, on the other hand, went up by €339m (+27.9%) to €1.55bn due to ef
Revenues declined by 0.9% to €14.75bn
EBITDA jumped 35.9% to €1.67bn and the EBITDA margin from 8.3% to 11.3% mainly attributable to IFRS 16
EBIT increased 2.3% and the EBIT margin improved from 5.9% to 6.1%
Net debt jumped from €1.9bn to €11.9bn due to the adoption of the new accounting rule IFRS 16; equity ratio declined from 38.4% to 27.7%
Management confirmed guidance for the current year
Revenues increased 5.4% to €60.4bn and EBIT improved 7.2% to €3.7bn.
The EBIT margin rose from 6.1% to 6.2%, mainly driven by the Express division.
Dividend increase of 9.5% from €1.05 to €1.15 per share.
Strong outlook for the current year with double-digit EBIT growth.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Deutsche Post AG.
We currently have 1 research reports from 1
The group has released a positive trading update with strong trading seen recently in the US along with signs of recovery in Europe and Australia. It is quite unusual for this conservative company to boost its guidance at this fairly early stage in the year, with raised guidance for FY21 leading us to increase our adjusted EPS by 15%. The shares trade on a discount to peers and offer a premium yield. We lift our price target from 435p to 520p, up 20% and offering decent upside to current levels.
Companies: Somero Enterprises, Inc.
AFC Energy hosted a virtual Capital Markets Event yesterday attended by over 750 participants.
The company re-emphasised its key technological advantage, namely, AFC Energy's technology can successfully run on a range of cheaper hydrogen sources including hydrogen ‘cracked' from green ammonia. Based on AFC Energy's market analysis, it stated that on an energy equivalent basis ammonia costs less than one quarter of the cost of hydrogen. Ammonia is a liquid under normal conditions, making it a d
Companies: AFC Energy plc
AFC Energy hosted its maiden Capital Markets Event yesterday, giving an excellent summary of its progress in the last year and its prospects. The company is making good progress in commercialising its EV charging product alongside ABB and should be ready for market in 2022. We believe the long-term prospects for the company remain exciting.
Powerhouse has announced progress with the international roll out of its DMG waste to hydrogen technology with an agreement towards the licencing of the technology in Greece and Hungary. This follows a similar agreement in Poland and demonstrates the global appeal of Powerhouse’s solution in our view. While development of the Protos project in the UK remains important, the ability to expand internationally is part of the appeal of the Powerhouse investment case and it is good to see progress her
Companies: Powerhouse Energy Group PLC
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
Companies: ADME RTC SAV DFCH HUW TEG ANIC KOO MIRI SPSY
The AGM trading update quantifies the current order book position which, at a fully committed £472m, has put on another 3.5% since the end of January. In itself that may look a modest sum but YoY the increase is 23.5% and is a critical aspect of the trajectory towards its medium-term target of £500m revenue (pre-COVID 2019 was £335m). Allied to strong levels of outstanding tenders and pipeline bid opportunities, management's target revenue is becoming more credible and with it the underpinning o
Companies: TClarke plc
For investors, the UK telecoms sector has presented immense challenges. Having boomed in the 1990s, mainly on the back of mobile telephony growth rates, telecom shares subsequently fell back sharply, as major debt concerns predominated. With Cable & Wireless (C & W) having exited, the UK sector now consists of little more than British Telecom (BT), privatised in 1984, and Vodafone, which was founded in the early 1980s.
Companies: ARBB BBGI CLIG FLTA OCI PCA PIN RECI SPO SCE VTA YEW
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB BPC BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
Oil rose this month with a slew of positive economic data and signs of a budding fuel consumption revival in key economies offsetting a worsening coronavirus crisis elsewhere.
Futures in New York rose this week, extending its monthly gain to 7.5%. The near-certain likelihood of higher fuel consumption in the US, China and the UK has brightened the overall demand outlook, even as a resurgent pandemic in countries such as India, Brazil and Japan cloud those prospects. OPEC and its allies see wo
Companies: FO 88E DGOC EME GTC TRIN UOG
Kevin Freeguard, Gattaca
Companies: Gattaca plc
Bacanora Lithium (BCN LN) – Potential offer from Ganfeng
Lucara Diamonds (LUC CN) – Reports healthiest diamond market for 5 years
Pasofino Gold (VEIN CN) – C$9m equity raise
Power Metal Resources* (POW LN) – New corporate presentation
Rambler Metals and Mining* (RMM LN) – 2021 Q1 results and progress of recovery plan
Rio Tinto (RIO LN) – Battery-grade lithium produced at California plant
Companies: LUC VEIN BCN POW RMM RIO
CRU has announced the sale of its Haydock property which it had retained following the sale of Coral Mouldings. It needs to spend £650k replacing the roof and the property will then be sold for £3.5m which should generate a book profit of £350k. The proceeds should be received by the end of 3Q 2021. We forecast cash balances as at April 2022 will be c.£12m, or £8m net of lease liabilities and other borrowings. NAV should be c.17.5p.
Companies: Coral Products plc
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
Companies: SYM CGNR EKF KBT GGP VLS TMO ECK B90 MDZ
Microsaic’s business model is evolving, and whilst results today reflect a financial performance that has been severally tempered by COVID-19, there are encouraging early signs of a turnaround now funding has been secured. Microsaic is transitioning its business beyond the capital sale of its novel miniaturised mass spectrometry (MS) instruments, consumables and support services, to a business model that uses its technology and instruments to deliver complex solutions for end users. There are a
Companies: Microsaic Systems plc
On 6 May 2021, AEG received a notice of violation issued by the North Carolina Department of Environmental Quality (NCDEQ). The letter advises AEG to submit a permit modification application as soon as possible to address the changes made, and not to construct or operate any ‘unpermitted emission control device' or operate any part of the process that has been modified from the original permit/application submitted. AEG has declared that it has already made a submission to the NCDEQ to modify th
Companies: Active Energy Group plc