IBERIAN DAILY 09 SEPTEMBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: AEDAS, CELLNEX, FLUIDRA, IAG, MAPFRE-BANKIA-CAIXABANK, MASMOVIL.MARKETS YESTERDAY AND TODAY
Sharp drop in crude oil and technological groups in the US
Drop in oil prices in view of oversupply risks and sales in US technological groups while in Europe losses were reeled in somewhat by the end of the session. In the Euro STOXX only Autos ended with gains, with Energy and Banks posting the biggest losses. On the macro side, in Germany July’s exports and imports moderated their rise slightly more than expected, although the trade deficit rose more than expected. In the euro zone, the second reading of the 2Q’20 GDP was raised to -14.7% YoY (vs. the previous -15%), although the heavy deterioration in private consumption continues (-15.9%). In the US, SMEs confidence recovered in August to 100.2 from 98.8 previously (104.5 in Jan’20). In Spain, Fitch revised its forecasts and now foresees a 13.2% drop in GDP’20 vs. 9.6% previously while the EU estimates suggest 18.5%. In China, August’s inflation moderated in YoY terms, in line with expectations to 2.4% while production prices saw a lower slowdown. As for the vaccine for Covid-19, AstraZeneca has put on hold the last trial phase in view of the emergence of possible adverse effects..
What we expect for today
Stock markets would open with some bearish bias in view of doubts on the progress of the vaccine. Currently, S&P futures are up +0.5% (the S&P 500 was down -0.7% vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 31.46%). Asian markets are falling (Japan -1.16% and Hong Kong -0.95%).
Today there are no noteworthy macro indicators. Debt auctions: Italy (€ 7 Bn in 12M t-bills), Greece (€ 625 M in 3M t-bills), Germany (€ 4 Bn in bonds due 2030) and Portugal (€ 1.25 Bn in bonds due 2030 and 2045).
COMPANY NEWS
FLUIDRA, SELL
The company announced at yesterday’s closing bell that, in light of its positive business performance since the beginning of the pandemic, the Board of Directors has decided to resume the payments of the dividend’20. Thus, the company will pay € 0.21/sh. (vs. none in 2019) as an interim dividend’20 on 27 Oct 2020 (ex dividend on 23 Oct 2020). 1.5% yield. Positive news as FDR was not expected to resume dividend payments at pre-Covid-19 levels until 2021. After this first interim dividend, we understand that FDR might pay a total DPS’20e of at least € 0.40/sh. (3% yield vs. none BS(e) and 0.12% consensus), which would mean resuming a dividend policy with a ~100% payout vs. maximum levels of 80% previously. We welcome FDR’s decision based on its positive business performance.
Aedas Homes is engaged in the housing development business in Spain. The company has a portfolio of approximately 1.5 million square meters of land that it develops for residential purpose. Co. develops multifamily homes for the housing market in Madrid, Catalonia, Levante and Majorca, Costa del Sol and Seville.
Bankia is a financial institution based in Spain. Co. is primarily engaged in operations in the banking sector. Co.'s business operations are structured into seven areas: Retail Banking, Business Banking, Private Banking, Asset Management and Bancassurance, Capital Markets and Holdings. Co. offers financial products and services to various customer segments, such as individuals, small and medium enterprises, large corporations, as well as public and private institutions. As of Dec 31 2014, Co. had total assets and total customer deposits of Euro233,648,603,000 and Euro106,806,698,000 respectively.
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
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.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Mapfre is an insurance company based in Spain. Co. is the parent company of a group engaged in the underwriting and provision of insurance in Spain and abroad. Insurance policies provided include: life, non-life, accident, home-owner, general and health. Through its subsidiaries, Co. is also engaged in the provision of reinsurance, the management of investment funds, pension funds and pension plans, real estate and related services. On the domestic market, Co.'s activities include managing investment funds, pension funds and pension plans, real estate and other service businesses.
Masmovil Ibercom SA, formerly World Wide Web Ibercom SA, is a Spain-based company primarily engaged in the telecommunication sector. The Company focuses on the sale and distribution services for Internet, Data Center and Telecommunications. The Company's product and services portfolio comprises Internet access through Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL) technologies, Internet domains and Domains Management and Registration Service through IberDNS application, Web hosting, virtual servers, dedicated servers, telephony services and routers. The Company also offers collocation services through two Internet Data Centers located in Madrid and San Sebastian. It operates through subsidiaries, such as Embou Nuevas Tecnologias SL and Ebesis Sistemas SL, among others. The Company owns a number of brand names, such as Pepephone, Yoigo and Llamaya.
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