THE TREND
(Boursier.com) — The CAC 40 will therefore have regained, in the space of 4 sessions and in particular that of yesterday (+1.57%), the ground lost last Thursday (-3.13%) to position itself at 7,333 points. And this morning, it continues in the green, but at a slower pace (+0.10% to 7,342 points).
Consumer price index data, released before the opening of Wall Street, showed that there was no inflationary runaway in the United States. The slowdown in consumer prices, more marked than expected by analysts, reassured market participants and relaxed US equity markets. These data will indeed be taken into account by the US Federal Reserve, at its next meeting, to decide on the trajectory of key rates.
On the value side, distribution titles are in the spotlight after what looks like a warning from Casino in the middle of the rescue process and the surprise announcement from Carrefour which is taking over Match and Cora! The titles logically diverge. In another sector, Orpea is also issuing a warning!
WALL STREET
The S&P500 ends with a gain of +0.74% at 4,472 points (4,488 points at the high of the day). The Dow Jones remains well oriented with an increase of +0.25% to 34,347 points (34,586 points at the highest). The Nasdaq is racing by +1.15% to 13,918 points, not far from a plus of the day at 13,963 points.
ECO AND CURRENCIES
Inflation slowed down in France in June, with in particular a decline in energy prices and a lesser increase in those of food, according to data published Thursday by INSEE, which confirms its first estimate. The consumer price index (CPI) rose 4.5% year on year in June (after 5.1% in May) and 0.2% month on month after -0, 1% in May.
UNITED STATES :
– Weekly unemployment registrations. (2:30 p.m.)
– US Producer Price Index. (2:30 p.m.)
– US budget balance. (8:00 p.m.)
Europe:
– German trade balance. (11:00)
– Industrial production in the euro zone. (11:00)
The euro/dollar parity reached $1.1132 this morning. A barrel of Brent is trading at $80.31. An ounce of gold is traded at $1,955.
RISING VALUES
Crossroads (+0.75% to 17.42 Euros) concluded, on July 12, an agreement with the Louis Delhaize group for the acquisition of the Cora and Match brands in France, reaffirming its leadership in the food distribution market in France. The Cora and Match brands operate 60 hypermarkets and 115 supermarkets respectively and employ nearly 24,000 people in France. They generated a turnover excluding tax of 5.2 billion euros in 2022 (4.3 billion euros excluding petrol), for an EBITDA of 189 ME. The store network acquired presents a very strong geographical complementarity with that of Carrefour, with particularly high market shares in the Grand Est and Northern regions of France, where Carrefour has little presence. The operation includes the acquisition of the premises of 55 hypermarkets and 77 supermarkets. The transaction, which is expected to be finalized in the summer of 2024, values the assets acquired on the basis of an enterprise value of 1.05 billion euros. It will be accretive to the Group’s adjusted net earnings per share from the first year.
Kaufman and Broad (+2.45% to 25.10 Euros): Current operating income stands at 67.7 ME (42.8 ME in 2022). The current operating profit rate stands at 8% (7.5% in 2022). In the 1st half of 2023, the net income of the consolidated group amounted to 46 ME (31.4 ME over the same period in 2022). The net income – group share amounts to 38.5 ME (22.7 ME over the same period in 2022). Kaufman and Broad expects to be able to achieve the following results for the 2023 financial year… Its net income group share should increase by approximately +20%. The current operating income (ROC) rate should be around 8% for a turnover growth of 6 to 10%. Positive net cash should be around 50 ME.
TFF Group (+4.40% to 42.50 Euros): In 2022/2023, turnover reached 439.7 ME instead of 302.6 ME, i.e. +45.3%. EBITDA is 93 ME, up 86%. The COI reached 79.1 ME, x2 in value compared to 2022. The net result of 54.4 ME is up by 17.8 ME or +49%. TFF Group has set itself a new business growth target of around +10% for the 2023/2024 financial year, combined with operating profitability ratios which should remain at high levels and gradually return to pre- pandemic.
TotalEnergies (+0.45% to 52.81 Euros), Global Infrastructure Partners (GIP), NextDecade Corporation and their partners, GIC and Mubadala, have made the final investment decision for the development of the 1st phase of Rio Grande LNG ( RGLNG), a natural gas liquefaction (LNG) plant project in southern Texas. This first phase is made up of 3 liquefaction trains for a total capacity of 17.5 million tonnes per year (Mtpy) and CAPEX of $14.8 billion. The construction contract (EPC) has been awarded to Bechtel, and the commissioning of the plant is scheduled for 2027. The project will be financed by equity contributions from the partners and by a contribution of debt concluded today with an international consortium of banks.
FALLING VALUES
Casino (-4.90% to 3.15 Euros) announces an estimate of its France revenue for the 2nd quarter of 2023 and its Ebitda France after rents for the 1st half of 2023. Estimated revenue for the 2nd quarter of 2023 Parisian and convenience stores increased by +2.6% on a like-for-like basis. The estimated activity of hyper- and supermarkets plunged by -17% and -14% respectively on a like-for-like basis, notably under the effect of price cuts. For the same period, Cdiscount’s turnover should be down -22% on a like-for-like basis. The GMV drops by -13% while the Marketplace GMV should be close to equilibrium (-3%). Ebitda France after rents for the 1st half of 2023 (excluding real estate development) is currently estimated between -165 ME and -175 ME (+191 ME for the same period in 2022), linked to the drop in turnover and the lower prices in hypermarkets and supermarkets.
Orpea (-1.20% to 1.85 Euro) provides the market this morning with information on its operational and financial situation as of June 30 and on its liquidity outlook. And the company anticipates lower revenue growth in 2023 and a lag deemed “substantial” in terms of EBITDAR generation for 2023, of the order of -15% to -20% compared to the forecast for EBITDAR of EUR881m included in the updated November 2022 business plan communicated to the market on May 12. Orpea is therefore now aiming for a 2023 EBITDAR of between EUR705m and EUR750m.
LATEST REVENUES/RESULTS PUBLICATIONS…
Median Technologies, Ateme, Kerlink, Paulic Meunerie, Drone Volt, Ecoslops, Thermador, Integragen, Lucibel
THE LATEST “RECOS” FROM ANALYSTS…
Jefferies remains neutral on Airbusaiming for 130 Euros.
MARKET INFO
Claranova raised 18.5 ME
Carmila proposes to acquire Galimmo
Median Technologies: raises 11.6 ME and finalizes a convertible bond issue
IN SHORT
Prodways: new orders for 3D printers
Esker partners with Forterro
Valbiotis announces its roadmap
Haffner Energy signs partnership with Resilient Hydrogen
Axa completes the acquisition of GACM España