IBERIAN DAILY 27 JANUARY + 4Q’22 RESULTS. HIGHLIGHTS AND PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACERINOX, CELLNEX, GRUPO CATALANA OCCIDENTE, ENAGÁS, IBERDROLA, REAL ESTATE SECTOR.At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’22 results to be released over the coming days in Spain.
The Ibex breaks through the 9,000-point barrier
The European stock markets saw another positive session, with the Ibex breaking through the 9,000-point barrier driven mainly by the banking sector. Thus, within the Euro STOXX, the best-performing sectors were Retail and Consumer Goods vs. the bigger drops in Food and Travel & Leisure. On the macro side, in Spain, the 4Q’22 unemployment rate climbed above expectations to 12.9%, whereas job creation slowed significantly to 1.4% YoY vs. 2.6% previously. In the US, the 4Q’22 GDP moderated its growth less than expected, which helped ease recession fears at the beginning of 2023, but at the same time could lead the Fed to take a more aggressive stance than expected next week. December’s new home sales climbed due to the previous figure being raised, durable goods orders increased more than expected in December. In Japan, January’s Tokyo inflation increased more than expected. In US business results, Comcast came in better, Mastercard and Visa in line, and Intel worse.
What we expect for today
European stock markets would open with gains of +0.3%. Currently, S&P futures are down -0.3% (the S&P 500 ended +0.76% higher yesterday vs. the European closing bell). Volatility in the US dropped (VIX 18.73). Asian markets are rising (China’s CSI 300 closed and Japan’s Nikkei +0.1%).
Today in the euro zone we will learn December’s M3, in Spain the 4Q’22 GDP, and in the US pending home sales and December’s personal income and outlays. In US business results, American Express, Chevron and Colgate, among others, will release their earnings.
COMPANY NEWS
ACERINOX. BUY.
The company announced at yesterday’s closing bell that it will invest € 224 M (US$ 244 M) in its NAS plant (which generates >80% of its EBITDA, with a ~50% market share in the US) in order to increase its production capacity by 20% (+200,000 metric tonnes).
Positive news that reinforces the company’s bet on the US market where both the competitive environment (covered by protectionist measures) and its ability to protect prices (being the main manufacturer in the country) would guarantee investments in NAS. Note that the main problem for ACX is the current lack of visibility on energy pries in Europe (where also the stainless steel price dynamics are worse than in the US and we believe they would currently be even below break-even), and thus we think that investments in its most profitable market should be welcomed by the share price.
AAC Technologies Holdings is an investment holding company. Through its subsidiaries, Co. is engaged in the manufacture and sales of acoustic products and precision components for acoustic products, research and development; sales of acoustic related products, manufacture and sales of electronic components and tooling and electronics related accessories and the provision of electroplating service. Co.'s segments include dynamic components, which consists of speaker boxes, receivers and speakers, Micro Electro-Mechanical System (MEMS) components, haptics & radio frequency (Haptics & RF) and other products including optics, microphones and headsets.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
Enagas is a gas transportation company based in Spain. Co. is engaged in the technical distribution and storage of gas through pipelines as well as the provision of regasification services. Co. and subsidiaries are engaged in the ownership, administration, storage, pipeline transportation, distribution flow, and sale of natural gas. As a transport company, Co. also provides gas and manages the gas infrastructures.
Grupo Catalana Occidente is an insurance group based in Spain. Co. is engaged in insurance and reinsurance activities, including commercial, life, disability, and automobile insurance. Co. is also engaged in the sale of annuities and pension funds. Co.'s operations are organized along two businesses: Traditional business (insurance) and Credit Insurance business. Co.'s main markets are located in Spain, Germany, United Kingdom, France and the Netherlands. Co. maintains a presence in more than 40 countries.
Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.
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