(Boursier.com) — Hexaom fell 2% to 20.20 euros this Thursday, while the group achieved a 2023 turnover of 1.016 billion euros, up 5.4% on a like-for-like basis. In the fourth quarter, turnover of €260.6 million was down 2.4% compared to the same period of 2022.
Home Construction maintained a good level of production. The Group benefited, particularly in the first half, from solid onboarding, the result of order intake in 2021 and 2022. Its turnover stood at €867.4 million, up 7.1% year-on-year. compared to last year.
Renovation, in a buoyant market but penalized by an inflationary context, recorded turnover up 2.6% to €54.3 million, driven by the development of the commercial network.
In a market in very strong slowdown (approximately -40% for the whole year), Real Estate Development achieved turnover below the objectives set by the Group but still up 1.9%. at 69.1 ME.
Heavy fall
For House Construction, order intake for the 2023 financial year stands at €559.4 million, down 40.6% in value and 44.7% in number. They are in line with a market which shows a drop of around 44% over the year (source Markemetron). Hexaom specifies that construction costs are generally tending to stabilize and that the average selling price, which had increased significantly over the last two years, is changing moderately over the last months of the financial year. For the whole of 2023, it stands at 166 KE excluding tax.
As of December 31, 2023, in renovation, order intake for the intermediated activity thus amounted to 103.9 ME, an increase of 22.8% and those for the “General contractor” activity to 39.7 ME. The backlog of the Promotion activity stands at 140.9 ME as of December 31, 2023 and the potential stock to be delivered represents a turnover of 349.9 ME, or 1,644 housing units.
Hexaom confirms an improvement in its operational profitability for the entire 2023 financial year but forecasts a decline in its production of around 25 to 30% in 2024.
“We are maintaining our 2023 scenario of margin improvement (PZP EBIT margin 3.8% +360bp), which is easy without ‘BtoB'” comments Portzamparc who specifies “that obviously the year that matters is 2024 for which we are maintaining also our expectations with CMI production at -27% (turnover 632.5 ME) for an EBIT margin of 1.6% in this branch… After a good stock market performance over the last few months (+33% over 6 months) , the stock still seems too inexpensive to us for this level of cycle (0.1x EV/Sales 2024 and 3.4x EV/EBIT)”. Enough to aim for a price of 29 euros while remaining on the purchase file.