A superb first half for Saint-Gobain
ACT |
The new analysis by Philippe Pauchard, Bourse Direct.
Saint-Gobain is a world leader that generates 73% of its sales internationally and develops, manufactures and sells building materials. The group has over 800 production sites and employs more than 167,000 people under the motto “Making the world a better home”.
When presenting the results on July 27, Saint-Gobain reported an exceptional first half of the year. Sales increased by 15.1% within a year. According to current data, it hit a new record at €25.48 billion, beating the €25.2 billion estimated by analysts. Operating income is up 17.5% to $2.79 billion, with a margin of 11%. Gross operating surplus (Ebitda) rose 13.4% to a record €3.68 billion. Net income rose 32.8% to $1.72 billion.
This good performance reflects the actions taken as part of the “Grow & Impact” plan and the good momentum of all the Group’s segments, all of which reported double-digit organic growth, driven in particular by renovation in Europe and construction in America and Asia .
In the current environment of accelerating inflation, Saint-Gobain expects its energy and raw material costs to increase by almost €3 billion in 2022 compared to 2021. This inflation affects raw material as well as transport and energy costs, particularly in Europe.
Nevertheless, Benoit Bazin, Managing Director of Saint-Gobain, is confident about the future and said: “ In the next few quarters we are ready to adapt in an agile manner to the consequences of rising interest rates, inflation and the geopolitical and energy situation in Europe and despite this context I am confident for 2022, which aims for further growth in operating profit in 2022 Compared to 2021 at comparable exchange rates “.
Since its high of EUR 67.12 on January 12, 2022, Saint-Gobain shares have weakened within a medium-term downward channel.
The lower part of the downtrend channel will result in a 26.4% recovery between $50.76 and $57.87 on March 7, 2022.
A new rebound attempt has been running since July 5, the target of which could well be the upper part of the downtrend channel, is €51.56, a potential gain of 20.3%.
Given this situation We therefore suggest a Buy on a dip at the 20-day moving average level at $44.84 to target $51.56. We place a Stop-loss order at 40.35 euros.
If successful, the profit is 20.3% with a risk of loss of 5.8%.
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