IBERIAN DAILY 12 NOVEMBER + 3Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: BANKINTER, CAIXABANK, INSURANCE SECTOR, MINOR HOTELS, 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 3Q’24 results to be released over the coming days in Spain.
Markets stabilise
In a session with few drivers, European stock markets rallied, offsetting part of the drop from the previous week. In the STOXX 600, the best-performing sectors in the rally were Construction and Banks, while Basic Materials and Retail saw the biggest losses. On the macro side, in Mexico September’s industrial output and October’s consumer confidence rose slightly more than expected. In the US, president elect D. Trump has decided to name M. Rubio as Secretary of State and M. Walts as national security advisor, both of them known for their tough position against China and favourable stance on Israel.
What we expect for today
Stock markets would open with drops of as much as -1.00%. Currently, S&P futures are down -0.10% (the S&P 500 ended down -0.12% vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.87%, Japan’s Nikkei -0.34%).
Today in Germany we will learn October’s final inflation and November’s ZEW index, in the UK September’s unemployment rate, in the US October’s SME confidence index and in Brazil September’s retail sales. In US business results, Home Depot and Tyson Foods, among others, will release their earnings.
COMPANY NEWS
MINOR HOTELS, UNDERWEIGHT
3Q'24 Results above expectations in both sales and EBITDA, with margins also coming in higher than expected (31.1% vs. 30.50% BS(e) and 30.7% consensus). The trend continues to be positive, with RevPAR growing +9% vs. 3Q’23 (vs. +6.5% BS(e) and +6.4% consensus) thanks mainly to prices (83%; +7%). NFD rose by € +72 M vs. 2Q’24, meaning 0.8x NFD/EBITDA LTM (in line vs. YE’23).
We roll over our valuation model, keeping estimates unchanged, with a new T.P. of € 4.60/sh. (+7% vs. previous T.P.). We maintain our UNDERWEIGHT recommendation, as the risk/return profile continues to be unappealing.
We do expect these results to have a significant impact on the share price given the company’s situation of low liquidity.
Bankinter is the parent company of a group engaged in banking activities. Services provided include: investment banking; capital market services; financial services insurance; international services such as foreign exchange transactions and travelers' checks; wholesale corporate banking; and retail and private banking services. Co. offers its products and services through the following channels of distribution: branch network; telephone banking, interactive (software) banking; agents; and Internet banking. As of Dec 31 2014, Co. had assets totalling Euro57,332,974,000 and deposits totalling Euro29,966,129,000.
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.
Minor International Public Co. is engaged in three primary businesses including restaurants, hotels and lifestyle brands distribution. Co. mainly operates in Thailand and also has operations in other countries such as Singapore, People's Republic of China, Republic of Maldives, United Arab Emirates, Sri Lanka, and Australia and New Zealand. As of Dec 31 2014, Co.'s businesses included a total of 119 hotels and serviced suites under the Anantara, Avani, Oaks, Four Seasons, St. Regis, Elewana and Minor International brands and over 1,700 restaurant outlets under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs & Rumps and BreadTalk brands.
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