Newsquawk Daily European Equity Opening News - 30th April 2024

30th April 2024

ASIA-PAC

APAC stocks were mostly higher but with gains capped heading into month-end amid a slew of data and earnings. ASX 200 was led by strength in the mining sector but with upside limited after a surprise contraction in Retail Sales. Nikkei 225 outperformed on return from the long weekend and as participants digested a slew of earnings releases. Hang Seng and Shanghai Comp. were varied in which the former made another brief foray into bull market territory, while the mainland lagged ahead of the Labour Day holidays and as participants reflected on mixed Chinese PMI data in which the official NBS Manufacturing and Caixin Manufacturing PMIs topped forecasts but Non-Manufacturing PMI disappointed despite remaining in expansion territory.

Samsung Electronics (005930 KS) - Q1 (KRW) net 6.8tln (exp. 5.4tln), oper. profit 6.6tln (prelim. 6.6tln), rev. 71.9tln (prelim. 71.0tln). To pay quarterly dividend of KRW 361 per common share. Expects to make 8-layer, 12-layer HBM3E chips in Q2. Expects improved server memory chip demand, solid mobile memory chip demand in Q2. Expects strong server memory chip demand, solid mobile and PC memory chip demand in H2. Expects annual smartphone sales to grow in H2. In the second half of the year, the smartphone market is expected to rebound due to stabilizing consumer sentiment, the expansion of AI products and services, and economic growth in emerging markets. Demand for HBM and for conventional servers and storage solutions to increase in Q2. In the second half of 2024, the foundry market is expected to see limited growth as uncertainties are likely to persist. Expects additional supply limits on advanced DRAM products in H2 due to focus on HBM production. (Newswires) Shares rose 1.6% in South Korean trade.

EUROPEAN CLOSES

CLOSES: DAX: -0.16% at 18,131.78, FTSE 100: +0.1% at 8,147.03 CAC 40: -0.3% at 8,065.15 Euro Stoxx 50: -0.5% at 4,982.95 IBEX 35: -0.5% at 11,100.80 FTSE MIB: +0.1% at 34,296.31 SMI: -0.1% at 11,332.36.

SECTORS: Utilities 0.91%, Materials 0.62%, Healthcare 0.48%, Telecoms 0.28%, Consumer Stpl 0.06%, Financials 0.05%, Industrials -0.04%, Energy -0.22%, Consumer Disc -0.54%, IT -1.18%

FTSE 100

HSBC (HSBA LN) - Q1 (USD): Revenue 20.75bln (exp. 21.03bln). Pretax profit 12.65bln (exp. 12.61bln). CET1 ratio 15.2% (exp. 15.4%). CEO Quinn is unexpectedly retiring after nearly five years in the role, Co. has started the search for a successor. Co. announced a share buyback of up to USD 3bln and approved its first interim dividend of USD 0.10/shr. Guidance unchanged. NII USD 8.7bln, down by USD 0.3bln Y/Y, "primarily reflecting deposit migration." (HSBC IR/Newswires) Shares rose 1.2% in Hong Kong trade. Index Weightings: FTSE 100 (6.4% - third largest), Stoxx 600 (1.3%), Hang Seng (8.6% - largest)

Prudential (PRU LN) – Q1 Update: New business profit +11%. Increasing confidence in achieving 2027 goals. Expects to provide an update on capital management plans by HY’24. (Newswires)

UK Retail - UK Lloyds Business Barometer (Apr) 42 (Prev. 42). UK BRC Shop Price Index YY (Apr) 0.8% (Prev. 1.3%)

OTHER UK COMPANIES

BROKER MOVES

DAX

Adidas (ADS GY) – Q1 (EUR): Revenue 5.45bln (exp. 5.46bln, prev. 5.27bln Y/Y). Currency-neutral sales +8% driven by growth in all regions except in North America, where revenue fell by 4% to 1.12bln. Europe: +14%. Inventories decreased 22%, more than 1.2bln. Says double-digit DTC growth in Q1 reflects strong Adidas sell-through. Outlook: Unfavourable currency effects are projected to weigh significantly on the company’s profitability in 2024. They are expected to continue to adversely impact both reported revenues and the gross margin development in the remainder of the year. Op. profit expected to be EUR 700mln (prev. guided 500mln). (Newswires)

Mercedes-Benz Group (MBG GY) - Q1 (EUR): Adj. EBIT 3.60bln (exp. 3.71bln). Sales 35.87bln (exp. 35.58bln). Cars Adj. EBIT 2.32bln (2.57bln); Outlook maintained. Performance: Q1 adjusted Return on Sales (RoS) reached 9.0% (Q1 2023: 14.8%) at Mercedes-Benz Cars and 16.3% at Mercedes-Benz Vans (Q1 2023: 15.6%); Mercedes-Benz Mobility adjusted Return on Equity (RoE) at 8.5% (Q1 2023: 15.6%). New products: World premieres for the electric G-Class1 and all new G-Class; EQS model upgrades; AMG GT Coupes and E-Class AMG models unveiled. Share buyback update: By the third quarter 2024 buybacks are expected to reach a total of EUR 4bln and to reach the targeted EUR 7bln in Q1 2025 before the Annual General Meeting. Outlook unchanged: Mercedes-Benz Group revenue in 2024 seen remaining at the prior-year level; Group EBIT and Free Cash Flow from the Industrial Business expected slightly below prior-year level; Mercedes-Benz Cars adjusted Return on Sales (RoS) expected at 10% - 12%; Mercedes-Benz Vans adjusted Return on Sales seen at 12% - 14% and Mercedes-Benz Mobility adjusted Return on Equity seen at 10% - 12%. (Mercedes-Benz Group IR)

Volkswagen (VOW3 GY) - Q1 (EUR): Operating Profit 4.59bln (exp. 4.51bln). Revenue 75.5bln (exp. 74.193bln). Operating Margin 6.1% (prev. 7.5% Y/Y). Cash flow in automotive segment -3bln (prev. +2.2bln Y/Y), Operating RoS 6.1% (exp. 6.4%); outlook confirmed. Asia-Pacific (+2%) and South America (+19%) recorded growth. In Europe/ Rest of World and North America, sales fell by 5% and 10%, respectively. Lower sales volumes, an unfavourable country, brand and model mix as well as an increase in fixed costs compared to the same period last year had the expected negative impact on the Operating Result in Q1. The significantly increased sales revenue in the Financial Service business largely compensate for the decline in the Automotive division (-4%). Order bank of 1.1mln vehicles remains stable at a high level compared to the end of 2023 of which 160,000 vehicles are BEVs. Encouraging order intake for important volume models such as the new VW Tiguan and the new VW Passat; order intake for BEVs almost doubled compared to Q1 2023. (Volkswagen IR)

OTHER GERMAN COMPANIES

Deutsche Lufthansa (LHA GY) - Q1 (EUR): Revenue 7.39bln (exp. 7.53bln). Adj. EBIT -849mln (exp. -782.6mln). Still sees FY Adj. EBIT around 2.2bln (exp. 2.22bln) and Adj. FCF of at least EUR 1bln. Co. is to reduce costs and stop new projects due to Q1 losses. Strikes have a significant negative impact on Passenger Airlines' earnings. Strikes had an impact of around EUR 300mln on earnings in this segment. Outlook for summer remains positive - bookings for summer +16% Y/Y. Demand for air travel continued to rise in the first quarter of the current year. (Deutsche Lufthansa IR)

Morphosys (MOR GY) - 2024 financial guidance published on January 30th cannot be maintained and was therefore revoked, while it will no longer make a forecast for gross margin or revenues from Monjuvi product sales. (Newswires)

Nemetschek (NEM GY) – Q1 (EUR): Revenue 223.9mln (exp. 222.8mln), EBIT 54.7mln (exp. 56.9mln), EBITDA 68.3mln (exp. 67.4mln). (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Caixabank (CABK SM) – Q1 (EUR): NII 2.78bln (exp. 2.73bln), CET1 Ratio 12.3%. FY24 guidance: NII in the mid-single digit growth Y/Y. RoTE more than 16%. (Newswires)

Chip Names - Samsung Electronics (005930 KS) shares rose 1.6% in South Korea following earnings (details in the Asia-Pac section)

Santander (SAN SM) - Q1 (EUR) net 2.85bln (exp. 2.89bln), Net Interest Income 11.98bln (exp. 11.378bln). (Newswires)

BROKER MOVES

SMI

Logitech (LOGN SW) - Shares fell 1.75% in US afterhours trade on soft revenue guidance for the FY25. Q4 EPS 0.99c (exp. 0.63), Q4 revenue USD 1.01bln (exp. 0.956bln). Exec noted a return to growth and expanded gross margins. Growth was broad-based across all regions and key categories. Sees FY25 revenue between USD 4.3-4.4bln (exp. 4.4bln), and sees FY25 operating income between USD 685-715mln (vs 699mln Y/Y).

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Sandoz reached agreement with Amgen resolving all patent litigation related to its US denosumab biosimilars. Agreement clears path for launch of Jubbonti and Wyost on May 31, 2025 or earlier under certain circumstances. The terms of the agreement will not impact our previously disclosed 2024 guidance. (Sandoz)

BROKER MOVES

SCANDINAVIA

Kongsberg Gruppen (KOG NO) – Q1 (NOK): Revenue 11.45bln (exp. 11.32bln), EBITDA 1.82bln (prev. 1.36bln Q/Q). Order intake in Q1 12.7bln. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.32% at 5,147, NDX +0.36% at 17,878, DJIA +0.38% at 38,596, RUT +0.66% at 2,053.

SECTORS: CONS DISC +2.03%, CONS STPL +0.3%, ENERGY +0.67%, FINANCIALS -0.19%, HEALTHCARE +0.33%,, INDUSTRIALS +0.69%, MATERIALS +0.84%, REAL ESTATE +1.08%, TECHNOLOGY +0.36%, COMMUNICATIONS -2.06%, UTILITIES +1.39%.

Caterpillar (CAT) - Caterpillar announced a voluntary delisting from Euronext Paris and the Six Swiss Exchange; cites low trading volumes and high administrative costs. CAT will solely trade on NYSE thereafter. (Newswires)

Tesla (TSLA) - CEO Musk is reportedly planning more layoffs as two senior executives depart, while roughly 500 people will be laid off in supercharger group, according to The Information. (The Information)

30 Apr 2024 - 06:55- - Source: Newsquawk