MSCI EM Consolidating; Downgrading Taiwan The MSCI Emerging Markets index (local currency) and EEM-US (USD) remain above major base supports ($41 on EEM-US), but we believe a new horizontal trading range is developing. As a result, we are neutral from a price perspective, and we would continue to favor defensive Sectors as the MSCI EM index approaches YTD highs and expected resistance. We also continue to favor EM over EAFE; the EM vs. EAFE ratio has been trending higher since March 2024. We...
Positive start to this year with the first quarter season almost completed We believe that the 4Q22 earnings of the auto parts manufacturers in our coverage perimeter were mostly in line with our and market expectations. We also note that the 1Q23 reporting season is having a positive tone, supported by healthy underlying vehicle sales and manufacturing dynamic. In conjunction with the first-quarter releases, European auto parts manufacturers have also reiterated their previous full-year 2023 o...
We expect a satisfactory third quarter earnings season: With the third quarter 2022 earnings season already upon us, we anticipate satisfactory results for the European auto parts manufacturers within the range of expectations. We believe that tweaks to full-year guidance are possible, but do not think they will be particularly impactful. We also think that a significant amount of bad news is already reflected in current bond prices for the top-tier European auto parts manufacturers, such as Fau...
MOTHERSON WIRING: Inline; strong revenue growth diluted by higher RM costs (MSUMI IN, Mkt Cap USD3.2b, CMP INR79, TP INR95, 20% Upside, Buy) Its performance in 1QFY23 was driven by strong revenue growth, though higher RM costs led to a decline in margin. The company is further geared to serve its EV customers with a new line setup in Chennai (in addition to Pune) for high-voltage wire harnesses. We largely maintain our FY23 EPS estimate, but raise our FY24 EPS estimate to factor in higher r...
Sona Comstar (Sona) raised around US$761m in its Indian IPO in Jun 2021. The shares are now trading well above the IPO price and its largest PE investor, Blackstone, will be released from its lockup soon. Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. In this note, we will tal...
MOTHERSON SUMI SYS. (IN), a company active in the Auto Parts industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date...
MOTHERSON SUMI: Below est; all-round miss due to cost inflation, op. deleverage (MSS IN, Mkt Cap USD9.5b, CMP INR223, TP INR285, 28% Upside, Buy) Underlying demand for PV / CV recovery remains strong Motherson Sumi (MSS)’s 1QFY22 performance was impacted by exogenous factors in all its businesses (COVID in India and supply-side issues in overseas businesses), sharp copper price inflation, and non-recurring expenses at PKC. While the near-term outlook is murky due to supply chain uncertai...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Sona Comstar (Sona) aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing. Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%...
Value Remains Leadership But Defensives Improving Our outlook remains unchanged as the weight of the evidence continues to suggest a mixed, but overall constructive market. Cyclical value Sectors continue to be our favorite areas to overweight (i.e., Energy, Materials, Manufacturing, and Transportation), while defensive Sectors also continue to be worth a look (i.e., Staples, Health Care, and Real Estate). Support Levels Holding, Market Dynamics Largely Positive. Broad global indexes (MSCI AC...
Sona Comstar (Sona) aims to raise around US$800m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing. Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%...
MOTHERSON SUMI: Pressure across businesses; greenfield plant losses reducing (MSS IN, Mkt Cap USD5.5b, CMP INR125, TP INR146, 17% Upside, Buy) Operating leverage hurts performance; US plant ramping up as expected MSS' third-quarter performance was weak across businesses due to revenue weakness-led operating deleverage. Continued reduction in losses of SMP's greenfield plant was the only positive. We cut FY21/22E consol. EPS by 10.5%/9% to factor in near-term volume weakness across key ...
MOTHERSON SUMI: Business reorganization to segregate India business; To acquire balance 49% stake in SMRPBV through share swap (MSS IN, Mkt Cap USD5.9b, CMP INR134, TP INR160, 20% Upside, Buy) MSS has proposed the reorganization of businesses within the group with an objective of (a) addressing the long-standing request of Sumitomo (~25.34% stake in MSS) for keeping its participation focused on the India wiring harness business, and (b) consolidating/simplifying the structure for minority...
EM Breakout -- Add Exposure The laundry list of market characteristics consistent with historical bull markets continues to grow, helping support our ongoing belief that global equities are in the early stages of a broad-based advance. • US Dollar; EM Equities. The US dollar (DXY) exhibits signs of rolling over, something we outlined as increasingly likely in our 12/10/19 Int'l Macro Vision strategy. This is bullish for global equities -- especially EM -- and has paved the way for the MSCI E...
Motherson Sumi: Above est.; Beat led by SMP/PKC but India a big disappointment (MSS IN, Mkt Cap USD5.9b, CMP INR135, TP INR167, 24% Upside, Buy) revenue grew 5% YoY to INR159.2b (v/s est. INR153.6b), drivn by PKC and SMP businesses. Consol. PAT grew 4% YoY to INR3.9b (v/s est. INR3.4b). 1HFY20 revenue/EBITDA/PAT grew 9.5%/-5%/-12%. 1HFY20 CFO increased 533% to INR14.3b, driven by reduction in working capital while lower capex led to FCF at INR4.2b (v/s -INR10.3b in 1HFY19). India business ...
ANNUAL REPORT THREADBARE (ART) | MOTHERSON SUMI FY19: Higher receivable discounting supports cash flows in weak operating environment MSS’ FY19 annual report analysis highlighted muted EBITDA growth of 4.4% to INR53.5b, impacted by the startup cost of greenfield plants and the weak operating environment. Net unamortized expense capitalized to the balance sheet increased by INR3.7b, 11.8% of PBT (FY18: INR3.0b, 9.1% of PBT), to INR7.3b (FY18: INR3.6b). Earnings to cash flow conversion improve...
Q1FY20 result highlights Disappointing quarter: Motherson Sumi’s consolidated Q1FY20 PAT at Rs 3.3bn (down 25% yoy) was ~10% below estimates. The operating performance at SMP came in significantly weaker than expected. Standalone: Revenues of Rs17.8bn (-9% yoy) seems to reflect the weak volume growth within the passenger car segment. EBITDA margins (adjusted for INDAS 116) at 16.7% (down 40bps yoy on an adjusted basis) was stronger than expected. On a sequential basis, gross margins showed ...
MOTHERSON SUMI: EBITDA in-line; SMP greenfield plants stabilizing, breakeven by end-FY20 (MSS IN, Mkt Cap USD4.3b, CMP INR97, TP INR140, 44% Upside, Buy) revenue grew ~14% YoY to ~INR167.9b (our estimate: INR168.6b) in 1QFY20, led by the Reydel consolidation and the better-than-estimated performance at India and SMP. EBITDA declined 11% YoY to ~INR12.6b (in-line). Higher depreciation and interest cost (partly due to the Ind-AS 116 impact and the FX loss) led to ~25% decline in adj. PAT t...
Motherson Sumi: Challenges at SMP are transient; Scope of increase in content | Value accretive M&A core part of strategy (MSS IN, Mkt Cap USD5.4b, CMP INR118, TP INR144, 22% Upside, Buy) While underlying automotive trends are not supportive, MSS has been impacted by ramp-up issues at its recently commissioned plants (particularly the Tuscaloosa plant). These issues are transient in nature, partly due (a) teething trouble for the large greenfield plant and (b) visa-related issues. We expect...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.