Event in Progress:
Discover the latest content that has just been published on Research Tree
Sika has published better than expected Q1 21 results with double-digit organic growth observed in all segments. The performance was particularly strong in the Americas, which benefited from volume growth driven by large-scale refurbishment and new-build projects in connection with distribution and data centres. The company has confirmed its 2023 strategic targets, but we believe that the organic growth in 2022 will be beyond the 10% guided by the company.
Companies: Sika AG
Sika published a good set of FY21 results, but slightly below our expectations. It registered sales growth across all markets, and slightly above our estimates, but the EBIT margin was shy by 60bp and net profit by 2%. Management proposed a dividend of CHF2.9, in line with our estimate.
After successfully closing the integration of the Parex business, Sika has announced its next big acquisition. Valued at €5.2bn, MBCC will be Sika’s largest acquisition to date. The purchase price represents an 11.5x EV/pro forma 2022E EBITDA, which is a cheap buy for Sika which trades at 21.9x EV/EBITDA. The transaction will be highly complementary across nearly all of Sika’s core technologies, applications and solutions and will bring Sika’s sales to nearly CHF13bn by 2023 (vs CHF9.4bn in 2021
Sika published a good set of 9m results with sales up by 18.1% in local currencies and 18.2% in CHF. The America region, China and India continue to show strong demand momentum but the same cannot be said for the EMEA region. The Global segment too is suffering from the semiconductor shortage but Sika was able to manage its top-line figures via frequent price increases and the EBIT by better cost management.
Sika published better than expected H1 results with a positive sales growth observed across all segments. Sales growth in Europe, due to the strong residential renovation trend, came as a surprise, while the strong rally in APAC was expected. Following the good set of result, the company has updated its FY21 guidance. We too have revised our estimates upwards, but it did not have a significant impact on the target price.
Sika has published better than expected Q1 20 results with organic growth observed in all segments. Once again Sika’s acquisition of Parex turned out to be fruitful, being visible by the double-digit organic growth observed in China. Following the strong performance, especially in Europe and APAC, the company has raised its full-year targets.
We have revised our numbers upwards.
Thomas Hasler will succeed Paul Schuler as the CEO from May 2021 and, therefore, FY20 was the last full year in the current CEO’s reign. The FY20 results were a good farewell present to him, with growth in all regions despite the pandemic, a significant increase in the EBIT margin, and successful completion of the integration of Parex, which was the biggest acquisition carried out by him.
Sika has proposed a dividend of CHF2.5/share and re-confirmed its 2023 strategic targets.
Sika has released preliminary FY20 figures with a growth of 3.4% registered in local currency but strongly dragged down by negative FX (-6.3%). The company, however, outperformed the market expectations by announcing stronger margins (Sika expects the EBIT margin to be ~14% vs AV est. of 13.3% and consensus 13.5%).
Sika has published a good set of 9m results with sales up by 2.6% in local currencies. However, it saw a strongly negative currency effect of –6.0%, resulting in an actual sales decline of -3.4%. The best performer was the APAC region which posted growth of 13.9% in local currencies and 8.3% in CHF and the improvement in Global Business was a positive surprise. For FY20, management has provided guidance of lower sales but an EBIT in line with FY19 figures.
Companies: SIKAN 0Z4C SIKA SIKA SKFOF
Sika published its H1 results which were better than our expectations with a positive sales growth of +2.9% in local currencies supported by the acquisition effect of +13.4%. The EBITDA margin was almost flat. For H2, management is confident of seeing positive organic growth. The 2023 strategic targets are still intact. We will be revising our numbers upwards.
Sika has demonstrated strong growth of 15.4% in sales in Q1 20. This growth was backed by increased pricing, the acquisition effect of Parex, and the late impact of COVID-19 in the Americas and Europe. The company is implementing significant cost-saving methods to deal with the current situation, yet it has dropped its 2020 guidance pertaining to the uncertainties. The 2023 guidance is still intact. Our minor tweaks in the model following this release do not change our recommendation.
The FY19 results were in line with our expectations and the company has reiterated its 2023 targets. Management is confident about 2020 despite the Coronavirus fears in China, and believes that it will be able to achieve 10% growth 2020. It has further confirmed that a big M&A is a possibility as the Parex integration is almost over.
The group has announced its FY19 sales up 14.4%, with organic growth contributing only 3.3%. All regions showed growth with APAC being the strongest. Through five acquisitions, the group has laid the foundations for continued growth. It has set Strategy 2023 where it seeks to grow by 6-8% each year upto 2023. It is also aiming a higher EBIT margin of 15-18% in 2021 while, according to our estimation, it was ~13% in 2019.
Following this earnings release, we will increase our sales forecast and leave unchanged the margin accretion. This will result in a higher target price by some 5-12% depending on our other changes in assumptions.
Sika registered a solid H1 19 but this was mainly thanks to acquisitions as the organic growth was at its lowest level over the last three H1s, with +3.1% vs +6.8% in H1 18 and +5.7% in H1 17.
But the disappointing fact is the change in wording about the guidance, which is somewhat a negative.
Overall, we will increase the target price by 5-10% in order to switch back to a Buy recommendation, as Sika remains our top pick.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sika AG.
We currently have 22 research reports from 3
Companies: Invinity Energy Systems PLC
On 10 January last year, we set out our ten top stock picks for 2022, in what turned out to be a very poor twelve months for global equities, due to war, accelerating inflation, political instability and recession fears. Between 7 January 2022 and 31 December 2022, the AIM All-Share Index declined 30.0%, whilst the average performance of our ten top picks was -24.7%, a modest relative outperformance. In this note we discuss the performance of our 2022 top picks, equities trends in 2022, and our
Companies: GHH SCE BGO TPT ZOO ASTO INCH DWF EQLS NXR
Companies: EQTEC PLC
• ITM has released a trading update, reporting on progress of the detailed review being carried out under its new CEO. This includes a profit warning, with FY 2023 results now expected to exhibit lower revenue and a higher EBITDA loss than previous guidance (existing guidance was to be at the lower end of the range on output of 48-65MW and £23-28m revenue, and was also for EBITDA loss of £45-50m), with the difference described as “material”. This has been driven by several factors: losses on cus
Companies: ITM Power PLC
Performance - 2022 ended with another difficult month for property companies as the sector continues to get to grips with the impact of higher interest rates. There were several funds that performed well during December, however, with secondary shopping centre landlord Capital & Regional top of the pile. For a second month on the trot Home REIT saw its share price tank after it came under attack from a short seller in November.
Valuation moves - It was a mixed bag for valuations, with six-month
Companies: GWW GWW TOWN API RLE LMP CAPC WHR CSH ASLI PCA EBOX RGLZ ESP PHP SHED SRE MLI RGL CRC CBA DELMUR
Companies: ITM IOG KOD AVCT
Companies: Yu Group PLC
Strix have issued a full year trading update indicating profit after tax will be c. £23.0m, in line with updated guidance provided in the 30 November 2022 trading update following completion of the Billi acquisition. Year-end net debt came in at £87.0m, slightly ahead of Zeus forecasts, leaving the company well placed to bring net debt / EBITDA materially below 2.0x during FY23. Profitability being in line provides confidence that the Zeus FY22 revenue forecast of £110.0m will be achieved, imply
Companies: Strix Group PLC
Capital Limited (LSE: CAPD) this morning provided its Q4 & FY2022 trading update. The Company has continued to perform strongly in 2022 with Q4 revenue 8.2% higher QoQ and 18.9% higher YoY. The full year of revenue has once again exceeded the revised guidance (albeit marginally) and our estimates.
Companies: Capital Limited
We see Invinity’s update as reassuring and the new commercial sale adds to this especially as it is a second sale through an existing partner. Year-end cash of £5.1m and £7.5m of further potential convertible funding aligns with a strong order backlog and pipeline growth to give comfort for FY 23 and beyond in our view.
Powerhouse is making progress in Poland. This is potentially a major opportunity for Powerhouse, and establishing a project here using its technology could open a potentially strong market in our view.
Companies: Powerhouse Energy Group PLC
Companies: eEnergy Group PLC
Companies: Kier Group plc
17 January 2023
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object
Companies: RNO WINE CNS HVO HVO RFX KIBO