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Global stocks

Softbank Group Reports Solid Quarter of Vision Fund Growth

JAPÓN BOLSA:KMA06. TOKIO (JAPÓN), 03/01/2018.- Un grupo de mujeres usan kimono durante la ceremonia de apertura de la Bolsa de Tokio de Japan Exchange Group, Inc. de la primera sesión comercial de Año Nuevo en 2018 en la Bolsa de Tokio, en Tokio, (Japón) hoy, jueves 4 de enero de 2018. EFE/KIMIMASA MAYAMA

as expected with the company reporting strong performance from the Vision Fund in line with stock market rises and generally strong recent IPOs.

Softbank fair value estimate of JPY 9200 is mainly due to a 4% downgrade in our valuation for Alibaba following its June quarter result, offset by increased valuation for Vision Fund 2 in line with valuation improvement over the quarter. The stock price is now below our fair value estimate with the main difference likely to be due to our valuation of Alibaba which is around 55% above the current stock price.

The Vision Funds and Latin America Fund held 221 investments at the end of June 2021. SFV1 reported a net realized gain of JPY 310 billion due mainly to selling some shares in Door Dash, Uber, and Guardant Health. The net unrealized gain of JPY 3.5 billion was much lower with strong share price performances of DiDi and Door Dash partially offset by weaker share price performance of some listed portfolio companies, particularly Coupang. In terms of sectors, the investments are also well diversified with 28% in consumer, 20% in transportation, 17% in logistics, and 10% in frontier tech 10%, 7% in proptech, 7% in fintech, and 3% in health tech.

Company’s Future Outlook

Softbank’s 40.2%-owned domestic telecom business, Softbank Corp, reported a fourth-quarter result in line with our estimates with revenue increasing by 0.7%, operating income increasing by 4.1% and net profit down 0.8%. Management estimated the first-quarter mobile price cuts negatively impacted the first quarter by around JPY 10 billion with a JPY 70 billion impact factored into unchanged full-year fiscal 2021 guidance for revenue of JPY 5.5 trillion (5.7% growth), operating income of JPY 975 billion (0.4% growth), and net income of JPY 500 billion (1.8% growth). A further price cut has been introduced for low end customers in July which looks likely to continue to put pressure on mobile pricing. The fair value estimated of JPY 1450 per share which is slightly below where the stock is trading.

Company Profile

Softbank Group Corporation’s (JPY: 9984)  is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 28% stake in Chinese e-commerce giant Alibaba and a 40% owned mobile and fixed broadband telecom operator business in Japan. It also owns 75% of semiconductor chip designer ARM Holdings although has agreed to sell this and is waiting on regulatory approvals, and has a vast portfolio of mainly Internet- and e-commerce-focused early stage investments. It is also general partner of the $100 billion Softbank Vision Fund 1 and sole investor in Softbank Vision Fund 2, both of which primarily invest in pre-IPO Internet companies.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Hess Corporation (NYSE: HES) Fair Value Up to $72 after Commodity Price Refresh

It is now assumed that oil (West Texas Intermediate) prices in 2021 and 2022 will average $57 per barrel and $67/bbl respectively (previously $55 and $57). That makes the stock look more or less fairly valued at the current price.

At the end of 2020, the company reported net proved reserves of 1.2 billion barrels of oil equivalent. Net production averaged 323 thousand barrels of oil equivalent per day in 2020, at a ratio of 70% oil and natural gas liquids and 30% natural gas.

The valuation of the firm’s Guyana assets continues to assume 10 total phases of development, consistent with management commentary. However, we risk the sixth and seventh phases at 75% and the final three at 50% in our base case. Likewise, 220 mb/d capacities for stages 4 and 5, with 180 mb/d peak output for developments 6-10. To give some indication of the upside if Hess and its partner Exxon can continue to execute and deliver the full 10 phases, we also model a scenario with no risk on the later-stage developments, and assume 220 mb/d capacities throughout. In that scenario fair value would be $89 per share.

Company Profile

Hess Corporation (NYSE: HES) is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. Hess Corporation is a mining and exploration firm. The Company is involved in the exploration, development, production, transportation, procurement, and sale of crude oil, natural gas liquids (NGL), and natural gas, with operations in the United States, Guyana, the Malaysia/Thailand Joint Development Area, Malaysia, and Denmark. Exploration and Production and Midstream are the Company’s segments. It’s Exploration and Production sector searches for, develops, produces, buys, and sells crude oil, natural gas, and NGLs. The Midstream business provides fee-based services such as crude oil and natural gas gathering, natural gas processing and fractionation of NGLs, crude oil transportation by rail car, terminating and loading crude oil and NGLs.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Mirrabooka Investments Ltd (ASX: MIR) Maintains Its Final Dividend & Declares A Special Dividend

Categories
ETFs ETFs

Vanguard Australian Shares High Yield ETF

 The benchmark leans toward the highest-dividend payers, excluding property trusts. The index provider ranks all dividend-paying stocks based on their dividend yield forecast for the next year and constructs the index using stocks that make up the top 50% of the floatadjusted market capitalization. Industries are capped at 40% and individual stocks at 10%. The index is rebalanced semiannually, and in 2018, it changed its rules around buying and selling so that stocks are added or removed more gradually. This should increase the portfolio to around 55 names from 45 and reduce stock turnover, though it will likely remain higher than market-cap-weighted index funds. Vanguard’s global presence allows the Australian team to leverage the U.S. team’s extensive indextracking experience.

Portfolio

The FTSE Australia High Dividend Yield Index is a real-time, market-cap-weighted index comprising companies with higher-than-average forecast dividends. The biggest sector exposure is financial services, at around 39%-40% of the portfolio. The fund’s exposure to materials has historically been volatile. Following dividend cuts in the sector, exposure dropped to 4% in 2016 from 20%. However, a fall in Rio Tinto’s share price and corresponding increase in yield saw the stock return to the portfolio in June 2017, increasing the fund’s exposure to the sector to 21%. That came at the expense of industrials exposure, which fell to zero. As of 30 June 2021, materials exposure was at 23%. This highlights the risk of “dividend traps” in a rules-based strategy. The portfolio has an underweighting in the high-growth sectors of technology and healthcare, as these companies typically reinvest a large proportion of their cash flow into research and development to drive future earnings growth rather than focusing on high dividend payouts. Real estate investment trusts are excluded. More than half the portfolio is in giant caps, with the balance mostly in large and medium caps. The portfolio’s exposure to cyclical/sensitive names has increased over the years and currently stands at 93%, implying high dependence on the domestic economic cycle.

Performance

Vanguard has fared relatively well over the long term, but short- and medium-term results have been a drag. Moreover, the annual return track of the strategy is visibly inconsistent as compared with its category index. In 2012 and 2013, the strategy delivered 24.5% and 26.5%, respectively–incredible relative and absolute returns. But investors should be cautiously optimistic about a repeat of such performance as the fund delivered equally subdued relative performance in 2014, followed by a 4.22% decline in 2015 and category benchmark relative underperformance of negative 1.2% in 2016. Poorly timed buys into materials such as BHP and Rio Tinto hurt in 2016. Vanguard recouped some of these losses in 2017, though this was curtailed as exposure to Telstra took a bite out of returns. As the banking industry came under pressure because of falling property prices and the focus of the Royal Commission in 2018, returns were again below the broader market.

Source: Morning star

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Funds Funds

Vanguard High Yield Australian Shares

Vanguard Australian Shares High Yield is a compelling and efficient option. The cost-value balance of the strategy is a solid strength. At 0.35% per year, it is currently one of the cheapest unlisted products offering domestic high-yield equity exposure. Vanguard aims to own every stock in the FTSE Australia High Dividend Yield Index, an index Vanguard has exclusive rights to replicate. Vanguard choose to keep the some of the index’s construction rules undisclosed to ward off speculative market participants looking to capitalize on the semiannual index changes before they have been completed within the strategy.

A well-managed, close replication of the FTSE Australia High Dividend Index

Vanguard Australian Shares High Yield replicates the FTSE Australia High Dividend Index, offering investors an above-average yield in a passive, tax-efficient vehicle. The benchmark leans toward the highest-dividend payers, excluding property trusts. The index provider ranks all dividend-paying stocks based on their dividend yield forecast for the next year and constructs the index using stocks that make up the top 50% of the float-adjusted market capitalization. Industries are capped at 40% and individual stocks at 10%. The index is rebalanced semiannually, and in 2018, it changed its rules around buying and selling so that stocks are added or removed more gradually.

This should increase the portfolio to around 55 names from 45 and reduce stock turnover, though it will likely remain higher than market-cap-weighted index funds. Vanguard’s global presence allows the Australian team to leverage the U.S. team’s extensive index-tracking experience. It is worth noting the risk of dividend traps may be exacerbated in a portfolio that has an automated bias to high dividend-payers. The index attempts to minimize this risk primarily through sector and stock caps that enforce a minimum level of diversification by incorporating consensus yield forecasts and by excluding companies not forecast to pay dividends in the next 12 months.

A top-heavy portfolio with large sector and company biases

The biggest sector exposure is financial services, at around 39%-40% of the portfolio. The fund’s exposure to materials has historically been volatile. Following dividend cuts in the sector, exposure dropped to 4% in 2016 from 20%. However, a fall in Rio Tinto’s share price and corresponding increase in yield saw the stock return to the portfolio in June 2017, increasing the fund’s exposure to the sector to 21%. That came at the expense of industrials exposure, which fell to zero. As of 30 June 2021, materials exposure was at 23%. 

Mixed results over the long term

Vanguard has fared relatively well over the long term, but short- and medium-term results have been a drag. Moreover, the annual return track of the strategy is visibly inconsistent as compared with its category index. In 2012 and 2013, the strategy delivered 24.5% and 26.5%, respectively–incredible relative and absolute returns. But investors should be cautiously optimistic about a repeat of such performance as the fund delivered equally subdued relative performance in 2014, followed by a 4.22% decline in 2015 and category benchmark relative underperformance of negative 1.2% in 2016.

Source: Morning star

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

Mirrabooka Investments Maintains Its Final Dividend & Declares A Special Dividend

They need an advice. Young married couple talking while sitting on the therapy session with psychologist

Mirrabooka Investments Ltd (ASX: MIR) declared a final dividend of 6.5 cents per share, fully franked, for FY21, in line with the preceding final dividend.

In addition to the final dividend, the company declared a special dividend of 2 cents per share, fully franked, bringing the total dividends for FY21 to 12 cents per share.

The full dividend (final and special) will be collected from capital gains on which the Company is or will be taxed. 

The pre-tax attributable gain (“LIC capital gain”) associated with the dividend is 12.14 cents.

The dividend will trade ex-dividend on July 28, 2021, and will be paid on August 17, 2021.

Mirrabooka Investments Ltd NTA (NET TANGIBLE ASSETS) per share is currently marked at $2.96, dividend yield at 2.40% and PE at 106.92 for the year 2021. 

The current price is $4.16 per share of Mirrabooka investments Ltd.

Company Profile

Mirrabooka Investments Ltd (ASX: MIR) was founded in 1980 by Mr. Robert Mark Freeman and is an Australian based company. Mirrabooka Investments Ltd is a publicly traded investment company that focuses on small and medium-sized businesses in Australia and New Zealand. The company has been in operation since April 1999 and debuted on the ASX on June 28, 2001. Mirrabooka seeks to offer shareholders with medium- to long-term benefits, including strong dividend yields, by making core investments in chosen small and mid-sized businesses. It invests in 50-70 companies outside of the S&P/ASX 50 Leaders Index. 

 (Source: FactSet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Dividend Stocks Philosophy Technical Picks

Heady (ASX: JHX) Raw Materials Inflation Offering Little Challenge to Hardie in Early Fiscal 2022

After patenting cellulose-reinforced fibre cement in the late 1980s, the Australian company entered the North American market in 1990, establishing its business with the benefit of patent protection. In doing so, the company’s product line has become synonymous with the product category. The firm now enjoys 90% share in fibre cement siding in North America, its largest and most important market, with similar positions in Australia and New Zealand. Fibre cement siding possesses durability advantages and superior aesthetics over vinyl cladding, leading to vinyl’s market share eroding to about 26% today from around 39% in 2003. At this same time, fibre cement’s share has increased to 19%, almost entirely due to increased penetration for Hardie’s product.

Hardie’s siding product range is now in its seventh iteration of product innovation, known as HardieZone, under which the product formulation is tailored to the different climatic zones within North America, increasing durability. Meanwhile, the company assesses its competitors’ product as equivalent to somewhere near its second generation of product, which Hardie released in the mid-1990s. The continued reinvestment in R&D supports Hardie’s strong brand equity and thus perpetuates the price premium that Hardie’s range attracts. 

Financial Strength 

Balance sheet flexibility has improved markedly in early fiscal 2021 despite the economic shock delivered by the coronavirus pandemic. Hardie will return to its regular dividend policy from fiscal 2022 after regular dividends were suspended in early fiscal 2021 in response to the pandemic. Leverage–defined as net debt/EBITDA–stood at 1.0 times at the end of the first quarter of fiscal 2022.Hardie runs a conservative balance sheet with leverage typically within a targeted range of 1-2 net debt/EBITDA. With net debt/EBITDA of 1.0 at the end of the first quarter of fiscal 2022, significant headroom exists relative to Hardie’s leverage covenant, calibrated at a net debt/EBITDA of 3. 

Therefore, Hardie has significant capacity to return surplus capital to shareholders.Hardie’s asbestos-related liability—the AICF trust–has a gross carrying value at fiscal 2021 year-end of USD 1.135 billion and remains an overhang. However, payments to fund the liability are capped at 35% of trailing free cash flow. Narrow-moat James Hardie is off to a flying start in early fiscal 2022 despite substantial inflationary pressures in raw materials and freight which, year-to-date, have shown little sign of abating. Our revised forecast sits slightly above the midpoint of Hardie’s upwardly revised full-year fiscal 2022 net income guidance range of USD 550 million-USD 590 million. Hardie continues to execute impeccably. 

Hardie’s Growth 

First-quarter North American fibre cement volumes rose 21%, tracking significantly above the broader market for exterior wall siding. Reflecting the year-to-date momentum in Hardie’s market share gains, we upgrade our full-year expectations for Hardie’s growth above the North American market index, or PDG, to 9.6% from a prior 7.9%. We lift per share our fair value estimate by 8% to AUD 34.20/USD 25.00, due to the recent depreciation of the Australian dollar. Accordingly, the North American softwood pulp price increased 23% in Hardie’s first quarter to USD 1,598 per tonne. Hardie continues to make progress against its cost savings targets under its ongoing lean manufacturing programme. We continue to expect achievement of USD 340 million in cumulative savings under the lean manufacturing programme by fiscal 2024, a USD 233 million increment over the USD 107 million in incremental cost-out achieved through to the end of fiscal 2021.

Bulls Say’s 

  • James Hardie’s clear leadership in the fibre cement category should drive growth in market share in the North American siding market. We forecast the company retaining its 90% share of the category, while fibre cement climbs to 28% of the total housing market.
  • Hardie’s strong brand equity translates into pricing power, allowing for inflation in manufacturing costs to be easily passed on, thus protecting profitability in the face of imminent input cost inflation.
  • The Fermacell acquisition could finally unlock Europe as an avenue of significant growth following market saturation in North America.

Company Profile 

James Hardie is the world leader in fibre cement products, accounting for roughly 90% of all fibre cement building materials sold in the U.S. It has nine manufacturing plants in eight U.S. states and five across Asia-Pacific. Fibre cement competes with vinyl, wood, and engineered wood products with superior durability and moisture-, fire-, and termite-resistant qualities. The firm is a highly focused single-product company based on primary demand growth, cost-efficient production, and continual innovation of its differentiated range. With saturation of the North American market in sight, the acquisition of Fermacell in early 2018, Europe’s leading fibre gypsum manufacturer, will provide Hardie with a subsequent avenue of growth.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Technology Stocks

Nvidia’s (NASDAQ NVDA) Revenue Continues To Rise, Despite Concerns about Cryptocurrency Demand

Display of Stock market quotes

The firm had record showings in both gaming and data center segments, but we are concerned with the surge of demand for Nvidia’s gaming GPUs used in cryptocurrency mining (specifically Ethereal), as we view this application as a volatile one that could lead to lower GPU sales if crypto prices trend down.

Nvidia continues to execute well in growing its data center business thanks to its A100 GPU for Artificial Intelligence and networking products from its 2020 Mellanox acquisition. Nvidia is paying a high multiple for ARM’s earnings. The Fair value estimate of Nvidia is $515 per share. First-quarter sales grew 84% year over year to $5.7 billion, with gaming and data center revenue up 106% and 79%, respectively. Data center sales benefitted from the inclusion of Mellanox and continued adoption of Nvidia’s A100 GPUs. Gross margins during the first quarter grew 100 basis points sequentially thanks to a more favorable product mix. Nvidia’s gaming’s GPUs are receiving an artificial boost from crypto mining that could be difficult to sustain.

The chief growth drivers are expected to be gaming; data center, and crypto mining processors, or CMPs. CMPs are optimized for crypto mining power efficiency and will provide Nvidia’s management some visibility into the contribution of crypto mining to total revenue.

Company’s Future Outlook
We estimate crypto mining related demand contributed around $400 million to $500 million in GPU sales during the quarter. It is expected that the firm’s automotive segment to resume growth in the coming years as its autonomous solutions are adopted and its legacy infotainment business is ramped down. Specifically, Nvidia’s automotive design win pipeline exceeds $8 billion through fiscal 2027. Management expects second-quarter sales to be at a midpoint of $6.3 billion, which implies 63% year-over-year growth and was also ahead of our estimates. For the second quarter, CMP sales are expected to be $400 million. Nvidia’s channel inventories remain lean, and management expects the firm to be supply constrained into the second half of the year. While we anticipate strong growth for Nvidia in the coming quarters, we remain vigilant of signs of weaker crypto-mining demand for its GPUs should crypto prices fall.

Company Profile
Nvidia Corporation (NASDAQ: NVDA) is the leading designer of graphics processing units that enhance the experience on computing platforms. The firm’s chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm’s graphics processing units.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Global stocks

Raising Our BioNTech (BNTX: NASDAQ) FVE to $172 Following Q2 Update; Forthcoming Oncology Data Could Add Upside

The emerging biotech’s first commercial vaccine, for COVID-19, received its first authorization in December 2020, and its early-stage pipeline and mRNA technology platforms have caught the eye of several large pharmaceutical companies, resulting in collaborations and partnerships. BioNTech’s internal discovery platform is focused on mRNA, including off-the-shelf and personalized mRNA drugs, but opportunistic acquisitions have brought in targeted antibodies and cell therapies as well. As such, BioNTech is not overly reliant on any one key drug candidate or drug class at this point, and it is poised to tackle cancer via many different mechanisms.

Further, the company has a burgeoning vaccine pipeline for infectious diseases. In partnership with the Bill & Melinda Gates Foundation, BioNTech is developing vaccines for HIV and tuberculosis, and the company’s COVID-19 program in partnership with Pfizer and Fosun Pharma was built off an existing partnership with Pfizer for an influenza vaccine. The COVID-19 vaccine, Comirnaty (BNT162b2), quickly progressed through human trials, culminating in authorization in the United States and Europe in December 2020.

Financial Strength

BioNTech has historically burned through cash to fund research and development of its pipeline. The company has minimal debt on its balance sheet, as it has funded discovery and development with equity issues and collaboration payments from partnerships with large pharmaceutical firms. Outside of BioNTech’s COVID-19 vaccine candidates, we think the earliest approval could arrive in 2023, which would put the company on a path toward steady profitability. Management has taken advantage of a couple of opportunities to acquire early-stage assets and expand its geographic footprint to establish a U.S. research hub at low prices.

BioNTech’s revenue soared to EUR 5.3 billion in the second quarter, with roughly EUR 1 billion in direct revenue for its COVID-19 vaccine in BioNTech territories and EUR 4.1 billion in gross profit share and milestones from partners (chiefly Pfizer, which reported $7.8 billion in COVID-19 vaccine revenue in the quarter). BioNTech now expects full-year revenue from the COVID-19 vaccine of EUR 15.9 billion in 2021. Based on these changes, full global sales of Pfizer/BioNTech’s COVID-19 vaccine of $35 billion in 2021 and $39 billion in 2022, as sales in developing markets and third-dose booster sales to developed markets continue to grow. Increased our assumed probability of approval for Pfizer/ BioNTech’s flu program BNT161 from 60% to 70% given continuing validation of this technology in infectious diseases.

Overall, these changes boost our fair value estimate to $172 per share from $139. BioNTech (and peer Moderna) rapidly building a moat based on novel mRNA technology, although multiple potential competitors, significant uncertainty around the duration of COVID-19 revenue beyond 2022, and ongoing validation of this technology outside of COVID-19 prevent us from assigning BioNTech a moat at this time. While the initial series continues to show 90%+ efficacy at preventing severe disease, efficacy against symptomatic infection has been slowly declining, from a peak of 96% down to 84% in individuals that are more than four months past their second dose. Both Pfizer/BioNTech and Moderna have early phase 2 data showing that a third dose of their authorized vaccines significantly boosts neutralizing antibody activity against the original strain and variants, including the delta variant.

Bulls Say’s

BioNTech’s pipeline, which relies on expertise in mRNA and bioinformatics, will be difficult to replicate by competitors.
BioNTech will be able to command a premium price with its personalized cancer therapies, if successful.
The rapid development of COVID-19 vaccine Comirnaty bodes well for the rest of BioNTech’s pipeline and the future of its mRNA research platform.

Company Profile

BioNTech is a Germany-based biotechnology company that focuses on developing cancer therapeutics, including individualized immunotherapy, as well as vaccines for infectious diseases, including COVID-19. The company’s oncology pipeline contains several classes of drugs, including mRNA-based drugs to encode antigens, neoantigens, cytokines, and antibodies; cell therapies; bispecific antibodies; and small-molecule immunomodulators. BioNTech is partnered with several large pharmaceutical companies, including Roche, Eli Lilly, Pfizer, Sanofi, and Genmab. Comirnaty (COVID-19 vaccine) is its first commercialized product.

(Source: Morningstar)
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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Global stocks

Vinci SA’s (PAR: DG) Strong Construction Market Drives for First Half Recovery & Shares Are Fairly Valued

The concessions business earns high profit margins and enjoys significant barriers to entry. In contrast, the contracting business is less attractive on a stand-alone basis but allows Vinci to draw on its expertise to bid on less competitive concession Greenfield projects, where construction capabilities are needed and thus allow Vinci to selectively bid for higher-margin contracting projects compared with pure-play contracting firms.

Vinci’s highly profitable acquisition of its motorway concession portfolio from the French government in 2006 has formed the backbone of the firm over the past 15 years. However, subsequent public disapproval of the deal has seen the state become less generous in awarding long-term extensions to Vinci’s existing network. Mergers and acquisitions have helped Vinci become the second-largest airport operator. The acquisition of the energy contracting division of ACS will provide Vinci with exposure to the fast-growing renewable energy sector as well as eight concessions mainly in electrical transmission.

Financial Strength

Vinci has been able to withstand the worst of global travel restrictions, which have kept earnings from the group’s concessions business heavily depressed, without a significant impact on the group’s balance sheet. Vinci has enough liquidity to meet financial and operating requirements despite low visibility on the duration of the recovery for the concession segment. Vinci holds EUR 9 billion of cash and cash equivalents, which is enough to cover debt repayments until 2025. Vinci also has access to an unused EUR 8 billion credit facility, which brings Vinci’s total liquidity to EUR 17.3 billion at the end of June 2021. Both Vinci’s airport and auto routes businesses have experienced a sharp upturn in traffic once travel restrictions have eased, which is expected to continue for the rest of 2021. Vinci’s healthy balance sheet has allowed the company to refinance debt at extremely attractive rates.

Bull Says

Vinci’s portfolio of diversified concession assets is a unique opportunity for investors to own irreplaceable infrastructure across multiple assets. Returns are supported by long-term concession contracts and favorable demographics.
Vinci’s balance sheet and global presence will allow the company to be well-positioned to boost their portfolio of high-quality assets, should governments look to privatize ageing infrastructure.

A record high order book of EUR 43 billion for the contracting segment provides earnings visibility as traffic from the concessions business recovers.

Company Profile

Vinci DG (XPAR) is one of the world’s largest investors in transport infrastructure. Significant concession assets include 4,400 kilometers of toll roads in France and 45 airports across 12 countries, making Vinci the world’s second-largest airport operator in terms of managed passenger numbers. The concessions business contributes less than one fifth of group revenue but the majority of operating profit. Vinci’s contracting business is made up of three divisions, offering a broad variety of engineering and construction services.

(Source: Morningstar)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.