Fuchs reported a reasonable set of results in Q3 24 amid a still challenging market environment. Reported revenues grew 3% yoy to EUR 902m in Q3 and was ahead of consensus by a marginal 1%. However, EBIT was broadly in line. Organic (org.) revenue growth saw a slight uptick to +2% yoy (vs +1% yoy in Q2) led by positive volume development, while overall prices were largely stable yoy. On profitability front, easing raw material costs helped more than offset the impact of wage inflation and higher operating overheads, thus driving a modest 3% yoy increase in EBIT to EUR 116m with flat yoy margin at 12.9%. Due to seasonality in Q4 and prevailing market uncertainty, management retained its cautious guidance for FY24, expecting revenues of c. EUR 3.6bn (+2% yoy) and EBIT of EUR 430m (+4% yoy), implying a margin of 11.9% (+20bps yoy). While mwb research acknowledges Fuchs’ highly diversified customer and product base and its ability to deliver return on capital, which is more than twice its cost of capital, the analysts see limited scope for high growth as it serves a largely mature market. mwb research maintains its BUY rating at an unchanged PT of EUR 48.00. The full update can be downloaded under https://www.research-hub.de/companies/Fuchs%20Petrolub%20SE

KION Group reported satisfactory results in Q3 2024. Revenues of EUR 2.7bn (-1% yoy) missed consensus by a marginal 1%. Adjusted (adj.) EBIT of EUR 220m (-2% yoy; margin: -10bps yoy at 8.1%) was 8% ahead of consensus, and order intake, though down 8% yoy and qoq to EUR 2.43bn was still a decent 3% beat. A buoyant service business at both Industrial Trucks & Services (IT&S) and Supply Chain Solutions (SCS) segments underpinned the topline while cost efficiency measures at SCS supported margins. Given better visibility into Q4, KION has again narrowed its revenue guidance range for FY 24 to EUR 11.4bn-11.6bn (vs EUR 11.3bn-11.7bn earlier), implying flat to +1% yoy growth, and adj. EBIT to EUR 850m-910m (from EUR 830m-920m), +8% to +15% yoy. mwb research adjusts estimates for the guidance change. This results in an unchanged target price of EUR 46.00 and mwb research reiterates the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

BASF reported decent Q3 24 results. Sales remained stable yoy at EUR 15.7bn (1% ahead of consensus) during the quarter on positive volume development across most segments, offsetting softer prices and unfavourable FX. Volume growth accelerated to 5% yoy in Q3 (+0.5% in Q2), while price decline of 2% yoy was less pronounced than seen in preceding quarters. EBITDA (excluding special items [ex-SI]) grew 5% yoy to EUR 1.62bn (a 3% miss) on significant profit increases at core businesses; this more than negated lower contributions from its standalone business. Encouragingly, for 24, management reiterated its guidance for EBITDA ex-SI of EUR 8.0-8.6bn, however, now expecting to reach the low end of this range. The low-end is still 2% above consensus. mwb research remains optimistic on BASF’s long-term growth story. The company’s ambitious new corporate strategy focused on active portfolio management, expansion into high-growth markets, and stricter capital allocation should propel it towards its ambition to reach EBITDA (ex-SI) of EUR 10-12bn by ‘28 and help generate its targeted cumulative FCF of over EUR 12bn between 25-28. The experts maintain their BUY rating and PT of EUR 62.00. The full update can be downloaded under https://www.research-hub.de/companies/BASF%20SE

Airbus posted solid 9M results, with revenues rising 5% yoy to EUR 44.5 bn due to higher aircraft deliveries, though adjusted EBIT fell 22% due to charges in the Space division and softer performance in Commercial Aircraft. Free cash flow before customer financing dropped to EUR -845 million, mainly from inventory buildup aimed at supporting Q4. While inventory levels will boost Q4, Airbus may struggle to meet its target of 770 aircraft deliveries for 2024 due to ongoing engine supply issues. Order intake fell by nearly 48% year-over-year, with weaker new orders in the Commercial segment, although the backlog remains strong at 8,749 aircraft. Given these pressures, the analysts maintain their SELL rating with a price target of EUR 127. The full update can be downloaded under https://www.research-hub.de/companies/Airbus%20SE

Infineon has unveiled the world’s thinnest 20-micrometer silicon power wafer, a true breakthrough that slashes power loss by over 15% and boosts efficiency and power density for demanding applications like AI servers and data centers. Despite the buzz around AI, Infineon’s AI revenue remains modest at an estimated 2%, projected to grow to 6% within two years—a small slice of the overall pie. However, the wafer’s real potential lies beyond AI: its seamless integration with existing silicon production lines unlocks scalability across sectors like automotive, industrial, and consumer electronics. While the full impact remains to be seen, mwb research’s analysts confidently maintain a BUY rating and a EUR 40.00 price target, grounded in Infineon’s commitment to boundary-pushing innovation. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

Geratherm has extended short-time work for its Geratal facility until March 31, 2025, due to ongoing challenges in the clinical thermometer market, a division that has seen sales plummet by 47% yoy in the first half of 2024. Competition from imported thermometers, particularly from China, has hurt the company, as these products often fail to meet EU MDR standards like break resistance, creating market disadvantages for Geratherm. Further extensions of short-time work beyond March 2025 are not feasible under current German labor regulations, as short-time work is limited to 12 months unless the government declares exceptional circumstances, which has not occurred. mwb research’s analysts update their model to reflect a slower-than-expected recovery in clinical thermometers. This leads to a new price target of EUR 7.00 (old: EUR 7.70) based on mwb research’s DCF model, which still supports their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Geratherm%20Medical%20AG

Wacker Chemie reported softer-than-expected results in Q3 2024. Revenues during the quarter declined 6% yoy to EUR 1.43bn (-3% qoq), falling short of consensus by 2%. This was mainly attributed to lower solar-grade polysilicon volumes, given weak demand amid uncertainties in the US solar market. While group EBITDA was stable yoy at EUR 152m in Q3, it was 5% below consensus expectations and the company’s guidance. Nevertheless, Wacker is optimistic of seeing a recovery in Q4 and confirmed its overall outlook for 2024, guiding for sales of EUR 6.0bn-EUR 6.5bn (-2% yoy at the midpoint) and EBITDA to reach the upper-half of its guidance range of EUR 600m-EUR 800m (2023: EUR 824m), although margin to be markedly lower than last year. Beyond 2024, Wacker’s strategic push into booming markets such as electric vehicles and semiconductors makes the company’s long-term growth story compelling. These strategic investments, coupled with its leadership in specialty markets, position Wacker for significant upside. Despite near-term challenges, the analysts reiterate their BUY rating with an unchanged price target of EUR 128.00. The full update can be downloaded under https://www.research-hub.de/companies/Wacker%20Chemie%20AG

Traton SE announced detailed Q3 2024 results in line with its preliminary release. Revenue growth picked pace to +5% yoy vs a 1% decline in Q2, underpinned by catchup effects in the International Motors segment (formerly Navistar) and a better price/product mix at Scania. Adjusted (adj.) EBIT of EUR 1.14bn in Q3 grew 19% and had beat consensus by a notable 11% at the time of pre-release. The adj. EBIT margin improved 1.2ppt yoy to 9.6% on increases in most segments. Given good progress in 9M, management confirmed its guidance for FY 2024, expecting unit sales and revenue growth of - 5% to +10% yoy and an adj. EBIT margin of 8.0%- 9.0%. While the catch-up effects in Q3 2024 are positive and the better-than-expected net cash generation is encouraging, the analysts remain cautious about the ongoing economic challenges, particularly in Europe, as it could significantly impact Traton's near-term performance. Therefore, the analysts broadly maintain their estimates and reiterate their BUY rating with an unchanged PT of EUR 34.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

CECONOMY’s FY 2023/24 performance aligned with guidance, achieving a 0.9% sales increase despite currency and portfolio impacts from divesting Swedish and Portuguese operations. Adjusted for these effects, sales grew by 5.3%, with like-for-like growth of 4.1% year-over-year. Q4 sales also demonstrated resilience, with adjusted growth of 6.3% and gains in domestic appliances, IT, and wearables, though software and games saw weak demand. The company is on track towards its medium-term financial targets, to increase adj. EBIT by FY2025/26 to EUR 500m, which becomes more achievable moving forward. mwb research’s analysts leave their PT and rating unchanged (EUR 3.50, BUY). The full update can be downloaded under https://www.research-hub.de/companies/Ceconomy%20AG

Siltronic, despite reporting better-than-expected Q3 results, continues to face downward pressure due to high downstream inventories in all segments. The industrial and automotive sectors are undergoing correction phases, dampening wafer demand, while consumer electronics are showing a slow recovery. Meanwhile, surging demand from AI and data centres is driving significant growth in silicon wafer sales as advanced AI applications and architectures require more silicon and memory intensive chip configurations, partially reversing the overall weak demand. mwb research therefore expect a gradual recovery by mid-2025, driven by AI and destocking as other industries catch up. Until then, Siltronic remains resilient thanks to its secured long-term contracts covering 66% of sales and its diversified product mix. With the stock trading below book value at 0.9x P/B, downside is limited, offering an entry point with an attractive risk/reward profile for patient investors. mwb research’s analysts reiterate their BUY recommendation with an unchanged PT of EUR 92.00. Head of IR Verena Stütze will provide further insights at the mwb research German Select online conference on 3 December, interested investors are invited to register here: https://research-hub.de/events/registration/2024-12-03-14-30/WAF-GR. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG