“Volle gas” for D’Ieteren thanks to its Carglass jewel

For 2021, D’Ieteren expects growth of at least 25% in its consolidated profit. The action jumped and hit a new record this Tuesday in session.

“Volle gas!” Clearly, despite the pandemic which has strongly affected car sales, D’Ieteren

completed a full throttle year 2020, at the same time, its share to historic highs, up to 81 euros in session before closing at 78.70 euros (+ 13%). A year ago the title traded at 36.1 euros as the markets plunged due to the health crisis.

Despite a 10% decline in turnover, the rue du Mail group posted adjusted consolidated net income of 332.7 million euros, up 11.2% and higher than analysts’ expectations (291.1 million).

The automotive distribution division has withstood, no matter what, the crisis which nevertheless ended in sales down 11%, and a 20% drop in profit. At Belron (Carglass), on the other hand, the result jumped 45% to 248.2 million euros, with sales down 7.5%.

107.1

euros

Degroof Petercam raised its price target to 107.1 euros, against 85 euros before.

Superior forecasts

“D’Ieteren unveiled explosive results thanks to its jewel Belron”, summarizes Kris kippers of Degroof Petercam. For the current financial year, the group anticipates an increase in operating profit of Belron more than 20%, driven by a change in turnover and other progress in the transformation plan.


“The stock remains very cheap, with a discount of more than 40% to the net asset value.”

David vagman

Analyst at ING

With regard to D’Ieteren as a whole, a growth of at least 25% of the result is advanced. “The forecasts for 2021 are well beyond our expectations and we feel, after the conference with the management, that a certain caution is even taken into account”, subodores Kris Kippers. He raised his target price to 107.1 euros, against 85 euros before with a purchase advice.

War chest

David vagman, ofING (“buy”; 97 euros), is on the same wavelength. He considers that the forecasts for the group are conservative with regard to the combined guidance for Belron and automotive distribution. “The action remains very cheap, with a discount greater than 40% compared to the net asset value, and it benefits from a dynamic based on very solid profits, ”said the analyst.

In KBC Securities (“buy”; 86 euros), it is judged that the market associates too much D’Ieteren with its automotive division, which, despite a decline in sales, has been able to protect its bottom line.

The shareholders are not forgotten at the end of this remarkable exercise. The dividend is increased by 35%, at 1.35 euros.

It remains to be seen what D’Ieteren will do with his war chest of 1.45 billion euros, supposed to diversify its portfolio. The bad strategic step taken with Moleskine calls, it seems, to the greatest caution.

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