Report
Xavier Caroen

Car Makers: Advantage Peugeot vs. Renault as for H1-18 earnings

Car Makers
Advantage Peugeot vs. Renault as for H1-18 earnings
Similar to our comments last week on French suppliers, ahead of the H1-18 earnings publication of carmakers, we come back to our estimates as for Renault and Peugeot. Both groups should post positive volume growth over H1-18, with Peugeot benefiting from good perf. in Europe while growth at Renault will come from emerging markets. EBIT at automotive division should remain flat at Renault despite positive contribution from Vaz, while will increase by around 5% at Peugeot despite Opel. We remain more positive on Renault than on Peugeot for the LT, but we are more positive on Peugeot short term (H1-18 earnings).
Underlyings
Peugeot SA

Peugeot is an automobile manufacturer (cars and light commercial vehicles), supported by two brands: Peugeot and Citroen. Co.'s activities are divided into four main segments: Automobile (Co. designs, manufactures and markets passenger cars and light commercial vehicles under Peugeot and Citroen brands), Finance (Co. provides retail and wholesale financing to customers and dealer networks), Automotive equipment (Co. produces Interior Systems, Automotive Seating, Automotive Exteriors and Emissions Control Technologies) and Other businesses (Co. produces scooters).

Renault SA

Renault is an automobile manufacturer. Co.'s activities have been organized into two main business sectors, in more than 120 countries: Automotive and Sales Financing. Co. designs, develops and sells passenger cars and light commercial vehicles. Following the acquisition of Romanian carmaker Dacia and Samsung Motors' operating assets in South Korea, Co. has three automotive brands: Renault, Dacia and Samsung. RCI Banque, Co.'s captive financing arm, finances sales of the Renault, Renault Samsung Motors (RSM) and Dacia brands, and, in Europe, the Nissan and Infiniti brands. In addition to these two activities, Co. has equity investments in the following two companies: Nissan and AVTOVAZ.

Provider
Bryan Garnier
Bryan Garnier

Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.

Analysts
Xavier Caroen

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