After six years of dry spell, this year European automotive market is finally supposed to start moving forward. Better trend is being used by some of the companies from the industry, despite some of them are still on hold. Stock.Watch.pl made a check of condition of drivers participating in the race for profits.

There are optimistic information coming from automotive industry. (…) 

- The market is recovering. The increase in car sales in Europe was visible in the last four months of 2013. We need to remember that comparative data was really low. The forecast for this year shows further sales growth between 2 and 5 per cent for EU-27 countries. Expected growth is already seen in share price of many companies from automotive industry. - said Jakub Szopek, analyst of mBank BH. 

This does not change the fact that companies from this industry sector became very interesting for the investors lately. On Monday, shares of Inter Cars SA. recorded a several per cent increase in price. The Group, which sells spare parts for cars, started the new year with sales increase in January of over 25 per cent yoy. According to estimate of forecasts made by Bloomberg, this year sales revenues of Inter Cars SA. will increase by 9.9 per cent. In an interview for PAP, Krzysztof Oleksowicz, the Member of the Board and main shareholder of the Company said that he is expecting to keep a double figure sales increase and also stabilization of profitability. Share issuer wants to enter Slovenian market this year, and in the country plans investment in new logistic centre.

The latest increase of share price of Inter Cars was accompanied by “accumulate” recommendation from Trigon BH. The Brokerage House emphasises the fact that the Company strengthens its leading position on the market of distribution of automotive spare parts delivered to independent aftermarket garages. Stronger position on its domestic market is a result of development of product range and opening new branches. Financial problems of Fota company are not with no effect, as Inter Cars took over large part of its market. Confirmation of domination on the market is a YtY increase of sales revenues which is estimated to reach 15% for the year 2013 and 10% for this year. The House forecasts that net profit of the company shall reach PLN 180.6m from PLN 150.1m in 2013. Sales revenues shall go up to PLN 3.999bn from PLN 3.524bn last year. The company develops and grows quickly outside Poland. An increase of 30% in sales revenues from foreign markets for previous year and expected increase of 20% this year are the best confirmation. This will be possible thanks to: 1) Further development of distribution chain (Inter Cars plans to open 34 branches this year, 30 abroad – an increase by 1/3); 2) sales support systems and further education of branch owners and employees; 3) implementation of integrated warehouse management system for the whole Group. - listed Trigon BH. 

source: www.stockwatch.pl
11-02-2014
back