Renta 4 | Due to a more adverse market environment than initially anticipated and the increased competitive pressure in Southeast Asia and Europe, VIS revised downwards its 2019 guidance, slightly in revenue (-1%) and more markedly in recurring EBITDA ( -7%) and recurring net profit (-18%). The new estimates consider an increase in sales + 5 / + 7% and recurring EBITDA + 2 / + 5% and a fall in recurring net profit -6 / -12%.
Spanish infrastructure group Acciona is increasing its shareholding in German wind turbine manufacturer Nordex. First it will buy in the first stage 10% of Nordex for € 99M – raising its stake to 36.3% – and subsequently will launch a takeover bid for the rest of the share capital to € 10.32 / share.
Spanish oil-and-gas company Repsol SA just created a new subsidiary for its renewable energy business: Repsol Renovables. This new company will be responsible for carrying out the new green energy projects that the oil company has for more than 1Bn investment.
Cellnex acquired the Telecoms unit of Arqiva for 2,000M GBP. The Spanish company reached an agreement with Arqiva to acquire c.7,400 new locations and the commercialization rights of c. 900 locations throughout the United Kingdom.
Renta 4 | Spanish bank BBVA´s Board has approved the payment of the dividend on account of the 2019 results for a gross amount of 0.1 euros/share (versus 0.12 euros/share expected by R4), which implies a return per dividend of 2.2%.
Alphavalue | The bank aims to finance or re-finance green activities, social or sustainable.
Banc Sabadell | The bank guarantees of around 1 Bn€ held by Ferrovial´s Services Division (which we value at approximately 2.5 Bn€; ~7X EV/EBITDA) are complicating its sale and could lower its valuation to 2 Bn€ (vs 2.5 Bn€ rumoured).
MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.
Renta 4 | Faced by the changing market conditions directly affecting the profitability of coal-fired power stations in Spain, Endesa´s board has decided to accelerate end of their production without expecting any impact on operating profits.
Santander Corporate & Investment | We reiterate our recommendation to Buy after revising our model with the aim of including the performance in the first quarter of 2019 and recent tendencies. We have lowered our new objective price (OP) for the close of 2019 from 4.7€/share to 42.5€/share mainly because the valuation at market prices of CIMIC (without recommendation) in our model.