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Dax extension: what you need to know about the ten new ones in the Dax

2021-09-03T05:19:50.371Z


The race is over, the ten companies that will soon be added to the Dax have been chosen. Deutsche Börse will announce their names in the evening - we are already introducing you to the ten likely DAX newcomers.


Enlarge image

Dax lettering on the Frankfurt Stock Exchange:

The leading index grows from 30 to 40 members

Photo: Boris Roessler / dpa

It is the most important reform of the Dax to date: The German benchmark index is growing from 30 to 40 companies. The move - along with other rule changes - was decided after the Wirecard bankruptcy. And now the time has come: On Friday evening, Deutsche Börse wants to announce which ten companies have made the leap from the MDax to the first stock market league, where they will actually be listed from September 20th.

Most of the newcomers have been considered set for some time.

Until recently, however, there was a race for the last places - and that has now been decided: Index expert

Luca Thorißen

from Stifel Europe has determined that the sporting goods manufacturer Puma and the diagnostics company Qiagen should have made it to the last two places.

In the case, Beiersdorf, LEG Immobilien and Hannoversche Rückversicherung would lose out.

If the expert is right, then the ten new members in the Dax are: Airbus, Siemens Healthineers, Zalando, Sartorius, Symrise, Porsche, Hellofresh, Brenntag as well as Puma and Qiagen.

Hardly any unknown names, then, most of the companies are well established and have been listed on the stock exchange for years.

But how are they currently?

What are your prospects?

And what about the development of your share prices?

Here is an overview of the (probably) ten new companies in the Dax:

airbus

The rise of the Franco-German aircraft manufacturer Airbus to the Dax was already practically certain with the decision to expand the Dax to 40 values.

Because when it comes to the decisive criterion - market capitalization - Airbus is in fifth place among all German stock corporations, ahead of Dax companies such as BASF, Daimler or Deutsche Telekom.

The mere fact that the Airbus share is mainly traded in Paris has so far prevented the group from joining the DAX.

The fact that the Dax rise is taking place right now fits perfectly into the picture. After the difficult time of the corona pandemic, Airbus is also back on the road to success economically. The recently published half-year results make this clear: Airbus increased its sales in the first six months of this year compared to the same period of the previous year by 30 percent to 24.6 billion euros. The group achieved a remarkable profit of 2.7 billion euros - in the Corona-burdened first half of 2020 there was a loss of almost one billion euros. No wonder, then, that the management around CEO

Guillaume Faury

(53) took the opportunity to once again raise the target for the year as a whole.

In any case, Airbus is now clearly ahead of arch-rival Boeing from the USA.

The only downer: the planned conversion of the German Airbus subsidiary Premium Aerotec is currently causing displeasure in the group.

CEO Faury wants to adapt the company's production options to new requirements, in which alternative drives also play a role.

Premium Aerotec is therefore to be split up and in part sold to investors.

However, the workforce and the IG Metall trade union do not agree with the plans, there have already been protests and more have been announced.

The participation in Airbus has recently been a great pleasure for the shareholders.

In the past twelve months, the share has risen by almost 70 percent to currently around 114 euros.

According to analysts, not much will change in the near future.

The majority of them recommend buying the paper, with an average price target of around 130 euros.

The Dax rise is unlikely to slow down the upward trend in the share price.

Zalando

Zalando was also hit hard by the Corona crisis - but in a positive way.

The lockdowns and other restrictions during the pandemic period made the online retailer's business boom.

The result: an increase in sales in the Corona year 2020 alone by almost a quarter to eight billion euros and a profit that almost doubled to around 421 million euros.

From the company's point of view, things get even better: As Zalando has now been able to determine, the restrictions for stationary retail have been largely relaxed - but the customers newly acquired by Corona apparently remained loyal to the online retailer. In the second quarter of 2021, sales increased again by 34 percent to 2.7 billion euros. The operating profit fell, but this was mainly due to high expenses for the acquisition of new customers and for marketing.

In the coming months, Zalando says it will continue to grow at a similar pace, with extensive investments in logistics and technology announced at the same time.

Whether the share is also developing as well as it did last seems questionable: the paper more than doubled its value during the corona pandemic, but has already suffered a few setbacks in recent months.

At least, analysts remain - partly with reference to the strong market position of Zalando - optimistic and recommend the share for the most part to be bought or at least to be held.

Siemens Healthineers

Siemens Healthineers was only listed on the stock exchange in 2018 as a spin-off from the Siemens Group - a march into the Dax within a good two years.

However, the medical technology company has made it clear, especially in the past few months, where the journey should go.

On the one hand, the corona crisis only had a temporary dampening effect on the business of Siemens Healthineers - there has now been a real boost from the pandemic, triggered by the great demand for the company's rapid corona tests.

On the other hand, other business areas of Siemens Healthineers - especially the diagnostics division - are running smoothly.

Result: CEO

Bernd Montag

(52) was able to present strong quarterly figures a few weeks ago and raise the forecast for the coming months.

High hopes rest primarily on the record acquisition in Siemens history, the takeover of the US company Varian, which Siemens Heathineers brought about in the spring of 2021. In an interview with manager magazin, CEO Montag described the acquisition of the world market leader in the radiation treatment of cancer for around 14 billion euros as an "accolade for our company".

The shareholders - above all still the Siemens Group with a 75 percent stake - should meanwhile also be very satisfied with their investment.

After the IPO, the share price more or less stood still for a long time, but has increased by around 50 percent since the beginning of 2021.

At the current record level, however, analysts are rather skeptical: Although most of them recommend buying, their price target is on average below the current level.

Brenntag

"We achieved excellent results in the second quarter and are very satisfied with the performance of our two global businesses (...)."

It doesn't often happen that a company

boss

expresses such unreservedly positive comments about the business, but

Christian Kohlpaintner

, CEO of the chemicals

dealer

Brenntag, currently has every reason to be happy: The company is just running

smoothly

.

In the recently completed second quarter of 2021, for example, of which Kohlpaintner spoke, sales rose by 23 percent to around 3.5 billion euros.

Earnings before interest, taxes, depreciation and amortization climbed by almost 29 percent to around 355 million euros.

In addition to the well-running operational business - trading in more than 10,000 different chemical products as an intermediary between the manufacturing groups and the companies that process these chemicals and ingredients - there are two main things that have been pleasing Brenntag's shareholders for months. First, the company continues to grow through acquisitions. For example, in the second quarter of 2021, the US company JM Swank was acquired, creating the largest marketer of food ingredients and process chemicals in North America, according to Brenntag. And secondly: At the end of 2020, the head of the company, Kohlpaintner, started a fundamental restructuring of the company, including site closings and job cuts.

Both of these things were obviously good for the share price: After a setback at the beginning of the Corona crisis, the Brenntag paper is climbing steeply.

At the current record level, well above 80 euros, analysts see the paper for the time being largely exhausted.

Porsche Automobil Holding

That must first be made clear: This is not the car manufacturer Porsche.

It is integrated in the Volkswagen Group and not a candidate for the leading index Dax.

Porsche Automobil Holding SE - Porsche SE for short - is rather the holding company that came into being when Porsche made the unsuccessful attempt to take over the Volkswagen Group a few years ago.

Since then, around 53 percent of VW ordinary shares have been pooled in Porsche SE - the fate of the company therefore largely stands and falls with the fate of Volkswagen.

This was also evident in the presentation of the latest business figures. After Volkswagen had already reported a billion-dollar profit for the first half of 2021, it was no longer surprising that Porsche also performed well in the same period: The investment company posted after-tax profit of around 2.5 billion euros in the first six months of the year - after a corona-related minus in the previous year of almost 330 million euros. Against the background, the Porsche management also raised the outlook for the year as a whole.

It is true that Porsche SE is by no means to be equated with a stake in Volkswagen. Rather, the company also holds shares in other companies, such as recently in the Bavarian rocket start-up Isar Aerospace or in Aeva Technologies, which wants to help cars with autonomous driving in the future. However, these investments only make up a small part of Porsche's commitment. So it's no wonder that the share has mostly developed more or less in step with the Volkswagen share in the past. Only in the past few months did the Porsche share in Wolfsburg pull away, so that over a twelve-month period there is currently an increase of almost 70 percent (Volkswagen's preferred shares: plus 40 percent).According to analysts, the price is currently around 87 euros - they see potential for a further increase of around 20 percent on average.

Hellofresh

"The Dax takes a small step from dividend index to growth index," commented Silke Schlünsen, index expert at the US investment bank Stifel, on the Dax expansion.

"Among the new members are some high-growth future companies that will enrich the index."

The expert is certain that this will also make the Dax more attractive for foreign investors and could get a boost from the inflow of funds from global investors.

Stifel's statement is likely to be aimed in particular at Hellofresh. The Kochboxenversender is almost still in the status of a start-up, founded in 2011, listed on the stock exchange since 2017 - and now already in the leading index of the 40 largest companies in the country. The company founders

Dominik Richter

,

Jessica Nilsson

and

Thomas Griesel

hit the

bull's eye

with their business

idea

: Away from frozen or fast food meals, back to your own stove - but with the friendly support of the company, which not only gives the leisure cook the choice of Dish that is to be prepared, but also delivers the necessary ingredients free of charge.

Hellofresh was already successful with this concept before the corona pandemic, even though the company posted losses for a long time and the share tended to lag on the stock exchange.

Only then did Hellofresh get the real boost from the crisis, in which millions of people had to spend more time at home.

In 2020, sales shot up by 111 percent to 3.75 billion euros, but pre-tax profit increased from a low level in the almost four-digit percentage range.

And the good thing: The newly acquired customers apparently remain loyal to Hellofresh beyond the lockdown constraints.

CEO Dominik Richter was able to raise his company's forecasts for the current year at the beginning of August.

On the stock exchange, the share woke up from sleep in mid-2019.

Since then, the price has increased by around 700 percent.

No wonder that after such an increase, most analysts are now skeptical about possible further price increases.

puma

Puma is also currently celebrating a comeback from the corona crisis.

For the second quarter, the sporting goods manufacturer recently reported an operating profit of 109 million euros - after a loss of 115 million euros in the corona-stricken period of the previous year.

CEO

Björn Gulden

(56) also recently raised the forecast for the year - but emphasizes that there are certain uncertainties as to whether the target can actually be achieved.

Gulden is not only referring to the corona crisis, which, for example, only recently led to production downtimes for Puma due to a new lockdown in the Far East.

The global logistics backlog is also causing the Puma boss a headache.

That means: Puma does not have a demand, but a supply problem.

Business is going brilliantly - but delivery can stall.

It is possible that this will also confuse shareholders.

The Puma paper has experienced a rapid upswing since the beginning of the Corona crisis - after a brief setback.

Recently, however, the share came under pressure, which can, however, be explained by profit-taking at the record level that has now been reached.

Symrise

With its more than 30,000 products, the flavor and fragrance manufacturer Symrise is involved almost everywhere: Whether ready meals, pet food, beverages, confectionery, cosmetics or cleaning agents - Symrise spices up many of them with its fragrances and flavors.

14 years after going public, the company from Holzminden is now on the Dax.

In the early days, the company itself passed through many hands - and is now consistently relying on takeovers on its growth path.

In 1874, two chemists from Holzminden developed the artificial vanilla flavor vanillin, founded the Haarmann & Reimer company - and in 1953 it was swallowed by Bayer.

Bayer later sold the flavor manufacturer to the financial investor EQT, who merged the company with Dragoco and listed it on the stock exchange in 2006 under the name Symrise.

Since then,

CEO

Heinz-Jürgen Bertram

has relied on takeovers himself: the US fragrance manufacturer Belmay was bought in 2013, the Swedish manufacturer Probi and the French manufacturer of food ingredients, Diana, in 2014.

In 2019, Symrise had the US animal feed additive manufacturer ADF cost around one billion dollars.

In the meantime, Symrise has achieved a share of around 10 percent in the global market for fragrances and flavorings.

Since purchasing ADF, Symrise has stood on three pillars: The "Flavor" division produces flavors for food and beverages, the "Nutrition" division offers ingredients for food and animal feed, and "Scent & Care" is involved in cosmetics, body care and cleaning products.

The broad lineup pays off.

After a setback in 2020 due to the corona pandemic, Symrise again significantly increased sales and profits in the first half of 2021.

Sales grew by almost 5 percent to 1.9 billion euros.

The profit before taxes, depreciation and amortization increased by almost 7 percent to 420 million euros.

The company then raised its targets for 2021 and is now aiming for organic sales growth of more than 7 percent.

Despite minor setbacks in the share price due to high takeover costs, the share has risen by almost 50 percent since 2019 and now has a stock market weight of around 15 billion euros.

Since the share is now close to a record high after a steep price rally, analysts are currently cautious: only a few are still recommending buy at the current level.

Qiagen

Qiagen is actually one of the big winners of the Corona crisis - the great demand for tests to diagnose Covid 19 infections helped the diagnostics company to really boom.

No wonder, then, that the Qiagen share was up by up to 40 percent at times between April 2020 and the middle of this year.

However, Qiagen shareholders are likely to have been all the more disappointed when the management board lowered its sales forecast for the current year at the beginning of July.

The reason for this: During the Corona crisis, the vaccination campaigns in many countries are now so advanced that the demand for Corona tests is already declining.

With 12 percent, Qiagen is still aiming for decent sales growth - but so far up to 20 percent were in prospect.

But there is also good news: Qiagen also has business activities outside of the corona pandemic - and these are currently developing very well.

According to the figures for the second quarter, sales in the product group that has nothing to do with Covid-19 grew by a remarkable 52 percent.

Most recently, after some ups and downs in the past few months, the Qiagen share made a leap up again.

It is still trading at a record level above 46 euros, and according to analysts, the paper is valued fairly.

Sartorius

The pharmaceutical supplier and laboratory equipment supplier Sartorius from Göttingen has been a favorite of investors for years - and the corona pandemic has once again fueled business. The preferred share has gained around 700 percent over the past five years. The group with around 1200 employees is already worth around 44 billion euros on the stock exchange and has the third highest market capitalization in the MDax behind Airbus and Siemens Healthineers. However, the ordinary shares are not freely tradable, as around half of the heirs of the company founder Horst Sartorius belong to. This protects the growth pearl from Lower Saxony from takeovers. Bio Rad Lab from the USA holds a further 34 percent. Only the market weight of the freely tradable Sartorius preference shares counts as a promotion criterion.

The Lower Saxony supplies important accessories not only for manufacturers of corona tests, but for the entire pharmaceutical industry. The order boom has ensured that company boss

Joachim Kreuzberg

has increased the annual targets again after a profit jump in the second quarter: Sales are expected to rise by around 45 percent in 2021, and adjusted operating profit by 34 percent. By 2025, Sartorius is aiming for sales of five billion euros and an operating profit of 1.6 billion euros: in 2020 it was still a profit of 700 million euros.

The strong growth of the company, which was founded in 1870 as a precision engineering workshop for analytical scales, is also driven by takeovers. The focus is on Asia and America. The most important participation is the 70 percent share in the French Sartorius Stedim Biotech, under whose roof the biotech business runs. The division sells materials that are in high demand during the pandemic, such as bioreactors, membrane bags, filter systems and nutrient solutions for cell cultures. Sartorius's competitors include the German Merck KgaA and the US group Danaher, from which the Göttingen-based company has already taken over some areas.

Although the market value of the Sartorius preferred shares is currently only around 13.5 billion euros, most analysts are assuming a Dax rise in view of the rapid growth of the group.

Seven out of twelve analysts surveyed by dpa-afx recommend buying the paper despite the latest price rally - Sartorius' business continues to develop very dynamically, according to Warburg analyst Michael Heider.

Only UBS advises taking profits, given the share's record high.

The latest boom was driven by Corona and should not continue forever.

cr, la / dpa-afx

Source: spiegel

All news articles on 2021-09-03

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