Rest of EMEA

Rest of EMEA equity research

Explore the most viewed and latest equity research and media content we have for listed companies based in the rest of EMEA.

EMEA Equity Research

Broker research, valuations, and analysis on European stocks

20 Nov 18

Thin Film Electronics - Destocking holds back revenue development

Thinfilm’s results for the nine months ended September 2018 show that Q318 was adversely affected by the end-customer destocking of the anti-theft (EAS) tags. We therefore revise our estimates downwards and cut our indicative valuation from NOK1.92/share to NOK1.68p/share. However, we are encouraged that Apple recently launched iPhones with native background, NFC tag read functionality. This is generating renewed interest among brand owners for Thinfilm’s NFC solutions, underpinning management’s expectations of a strong NFC tag ramp-up during H219.

Companies: THIN FILM ELECTRONICS

15 Nov 18

9M numbers released today not really helpful

‘Old’ Linde AG has released sales and operating profit numbers for 9M18 but nothing else. Revenue fell by 1.7% to just above €13bn (+4.8% organic) while operating profit increased by 4.2% to €3.30bn. Linde’s number is close to EBITDA, but it includes one-offs which we do not include in operating earnings. We had expected a sales number of €12.8bn and EBITDA of €3.15bn.

Companies: Linde

15 May 18

Favourable weather and robust gas midstream activities support 6% EBITDA growth in Q1 18

Engie reported a robust set of Q1 18 results, marked by the high winds and hydro output in France, strong activities in the Americas and the robust performance of the gas midstream activities. The group confirmed its 2018 objectives.

Companies: Engie

25 Oct 18

First signs of change

Covestro’s Q3 figures were slightly above our expectations and have beaten consensus, helping the share price to recover. This is the good news. A deeper insight makes us more confident that the business is becoming more challenging and a look into the cash flow leads us to conclude the company is preparing for more difficult times. The share buy-back amounted to €974m ytd (plus €440m for dividends), which looks quite uninspired.

Companies: Covestro

08 Nov 18

Gathering clouds in China

Operational signs have improved in Q3. The decrease in unit sales has softened and the price effect was lower. The decline in Russia has been reduced to 5% but the momentum in China is depressed. Sales were up 4% at CER and the operating profit was down 7.7% in Q3.

Companies: Oriflame Holding

14 Nov 18

9m 18: still burning too much cash, namely €263m over nine months

Overall, the company has burnt €263m since the beginning of the year, of which €85m from share buy-backs and €44m from dividends. We believe that financing shareholders’ remuneration through an increase in indebtedness is a very risky move. Following this earnings release, we will increase our forecasts but keep our Sell recommendation unchanged.

Companies: Bilfinger

14 Nov 18

Strong 9M results on higher renewables capacity, robust retail

E.ON released a good set of 9M results. EBIT was up 11%, supported by strong growth in the renewables business as well as positive trading developments in the customer solutions division in Q3, although this likely to reverse in Q4. The group confirmed its FY18 objectives. We stick with our current Add recommendation.

Companies: E.ON

15 Nov 18

Q3: positive momentum from activity

A positive activity trend while the situation in Brazil is still pending.

Companies: SBM Offshore

16 Nov 18

Q3 18: high time to...wait some more

Revenues reached €961m (-0.3% yoy and +5% at CER), EBITDA €43m (vs €9m), EBIT €-29m (vs €-88m) and net income €-92m (vs €-119m). Net debt at the end of Q3 18 reached €2,097m vs €1,934m in H1 €1,783m in Q1 and €1,542m at year-end 2017. Over 9 months, revenues were up 4.7% to €2,805m, EBITDA up from €-9m to €61m and operating profit up from €-277m to €-234m. The group had targeted a positive outlook for H2 with EBITDA higher than in H1, and now indicates Q4 EBITDA should be above that of Q3 (€43m). Demand should be softer in the US (after inventory build-up anticipating section 232) and stable in Brazil, while activities should benefit from higher volumes and prices elsewhere.

Companies: Vallourec

16 Nov 18

9m18: solid performance in lfl EBITDA, net debt decreased significantly

Acciona used to be a pure construction company more than a decade ago but it now has the profile of a Spanish renewables player in electricity generation from windmills (60% in Spain). Note that the Energy division accounts for 70% of our NAV. Reported EBITDA increased by a mere 1.2% over 9m18 vs a 6.7% increase in H1 18. Following this earnings release, we expect to cut our EBITDA forecast slightly but to keep our Buy recommendation with a lower target price.

Companies: Acciona

16 Nov 18

Solid organic growth in Q3 led by pricing

In a short trading update, Bekaert reported first nine months consolidated sales of €3,227m, up +5%, while organic growth was +10%, led by volumes (+3%) but mainly price increases and a favourable mix (+7%). In Q3, volume growth moderated to +1.4% yoy as strong demand from the automotive and construction markets were partly offset by weaker industrial steel wire markets, reflecting the impact of rising trade tensions in the global economy. The aggregate effect of passed-on wire rod price increases and price-mix added +9.2% to organic sales growth for the third quarter. Currency movements (-0.6%) and divestment effects (-0.5%) were limited. The company expects continued good demand from the automotive and construction markets in Q4 18, while the H2 18 EBIT is expected to be above that in H1 18. The net debt position should also be reduced by year-end.

Companies: NV Bekaert

19 Nov 18

Decline in revenue as expected in Q3 18.

The decrease in revenue by -1.2% on a constant perimeter was broadly in line with expectation; note last year’s high comparative (+3% on constant scope in Q3 17). Software editing and integration were satisfactory overall while SaaS revenue decelerated strongly in Q3 18 following two buoyant quarters. We see this as temporary and not calling into question SaaS future growth since the expansion of SaaS is structural in the software market.

Companies: Prodware

19 Nov 18

Carlos Ghosn apparently reported wrong corporate salaries from Nissan

According to Asahi Shimbun, the Japanese newspaper, Carlos Ghosn was questioned today by Tokyo prosecutors. They accuse him of having understated his corporate salary by several hundred million yen. The newspaper speculates that today’s questioning might result in his arrest. Carlos Ghosn is not only Chairman of Nissan but also of Mitsubishi and CEO and Chairman of Renault. In addition, he oversees the alliance of these companies which now also includes Russian Avtovaz.

Companies: Renault

21 Nov 18

La Doria - A tough environment

The consumer environment remains tough for La Doria and the adverse weather conditions for the seasonal tomato campaign have led management to slightly edge down its FY18 profit outlook earlier this year. During 9M18, underlying sales were up 2%, which represents a slowdown from the +3.7% in H1. This was caused by a deceleration in growth in the “other lines” of the trading business during Q3, ie the non-core part. Management is forging ahead with its four-year investment plan and the Acerra plant has now closed. We trim our forecasts in line with the revised outlook and our fair value moves to €15.40 from €16.10.

Companies: La Doria

21 Nov 18

CREALOGIX Group - International expansion continues

CREALOGIX has established a strong track record of delivering software solutions to the banking industry in Switzerland and is transitioning the business to international markets. FY18 numbers were below expectations, mainly due to the faster than anticipated switch to SaaS, which spreads out revenue. International revenues represent 57% of the total (50% in FY17). CREALOGIX acquired the 80% remainder of Elaxy BS&S in July, having acquired Innofis to target the Middle Eastern markets earlier this year. The stable, cash-generative nature of Elaxy BS&S balances the higher-risk, stronger growth profile of Innofis. Given the attractive industry dynamics, and with CREALOGIX ideally positioned to capitalise on these, the shares look attractive on c 21x our FY20e EPS.

Companies: CREALOGIX Holding

02 May 17

Executive Interview - Oryzon

24 Apr 18

Bitesize briefing - NeuroVive Pharmaceutical

08 Mar 16

Executive Interview - TxCell

21 Mar 18

Bitesize briefing - Auriant Mining

21 Nov 18

Executive interview – Oryzon

07 Feb 18

Kenmare Resources plc - Update from Mining Indaba

25 Sep 18

Bitesize briefing - Nuevolution

29 Nov 17

Executive Interview - NeuroVive Pharmaceutical

30 May 18

Executive interview - Banca Sistema

27 Sep 17

Executive interview - The Marketing Group

10 Aug 17

Executive interview - 4SC

07 Aug 17

Executive interview - Mondo TV

27 May 15

Executive Interview - KTG Energie (German version)

07 Aug 17

Executive interview - Mondo TV (Italian)

05 Dec 17

Executive interview - Genkyotex

Latest Content

PPC CAB APCL

GMP FirstEnergy ― UK Energy morning research package

President Energy (PPC LN) (not covered): Argentina update | Cabot Energy (CAB LN)1 ; Speculative Buy, £0.10: Resources estimates in Italy | Equinor (EQNR NO) (not covered): Gas find in Norway | African Petroleum (APCL NO) (not covered): Relinquishes licences SL-03-17 and SL-4A-17 in Sierra Leone.

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22 Nov 18
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CREALOGIX Holding

CREALOGIX Group - International expansion continues

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21 Nov 18
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Oryzon Genomics

Executive interview – Oryzon

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21 Nov 18

Enel

Convincing CMD-2018, Buy reiterated

Enel held its capital markets day on 20/11/2018. The group’s CEO, Francisco Starace, and CFO, Alberto De Paoli, gave a detailed presentation of the group’s strategy for the 2019-21 period.

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21 Nov 18
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ThyssenKrupp

ThyssenKrupp’s new accounts show a tiny net profit of €8m

The group’s new 2017/18 accounts show Steel Europe as a discontinued operation that contributed a net profit of €258m, whereas the group’s continuing operations contributed a net loss of €200m. After deducting minority charges of €51m, the bottom line shows a tiny profit and management proposes an unchanged dividend of €0.15 payable early next year.

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21 Nov 18
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MagForce

MagForce - 2019 a pivotal year

MagForce continues to implement its two-pillar strategy. A gross $9.0m capital raise secured by subsidiary MagForce USA in August will enable financing of the pivotal US prostate cancer trial to completion. In Europe, expansion outside Germany has started and a NanoActivator will be installed in Poland by the end of the year. Of the €9.2m reported revenue and other operating income in H118, €24k relates to EU glioblastoma multiforme (GBM) treatments, while the remainder (€8.8m) was non-cash income relating to hidden reserves as a result of the MagForce USA share transfer. We forecast revenues to pick up in 2019 following the roll-out of devices across Europe and a launch in the US (in late 2019). We value MagForce at €303.1m or €11.5/share.

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21 Nov 18
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Europlasma

Allowing for delay-driven H1 losses (Europlasma)

Allowing for delay-driven H1 losses TARGET CHANGE CHANGE IN TARGET PRICE€ 0.21 vs 0.34 -38.5% The small new energy group is suffering from further delays to fine-tune its power generation technology. This implies continuing refinancing concerns that have sent the share price down in a negative spiral. We have allowed for higher dilution compared to the previous scenario. As a reminder, Europlasma may use its existing majority control of the power generation business to raise cash at this level as well. CHANGE IN EPS2018 : € -0.05 vs -0.01 ns 2019 : € -0.01 vs 0.00 ns EPS suffers from the H1 18 loss, meaning the first "normal" year of operation for the waste to energy venture is 2019 and not 2018. 2018 is busy fine-tuning the technology implying stop and go power production and a lower than expected top line. CHANGE IN NAV€ 0.23 vs 0.35 -34.5% The lower NAV per share recognises a higher forward looking number of shares. The underlying assets valuation is essentially unchanged. CHANGE IN DCF€ 0.45 vs 0.72 -37.6% The lower DCF recognises a higher forward looking number of shares and a higher debt level at the close of 2018.

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21 Nov 18
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Faurecia

Faurecia and Hella join forces in interior lighting

The two companies have formed a partnership for the development of innovative interior lighting solutions. Whereas Faurecia is a supplier of complete vehicle interiors, Hella is specialised in lighting. The aim of the partnership is to develop surface-lighting and dynamic-lighting solutions for a more personalised cockpit environment. Whether this cooperation will eventually lead to more than just this interior lighting partnership remains to be seen.

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21 Nov 18
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MEDSERV

Medserv - Geographical reach

Medserv has announced signing a contract for shore-base logistics in Suriname, a new geographic region for the company. End markets are supportive for the company and we believe tendering activity continues at a good level. Overall, FY18 has progressed well, with contract wins establishing the company on a broad geographic reach and underpinning growth expectations in FY19.

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