|Bid||112.62 x 0|
|Ask||101.77 x 0|
|Day's range||112.17 - 115.22|
|52-week range||70.45 - 152.35|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||14.74|
|Earnings date||09 May 2020|
|Forward dividend & yield||4.30 (3.82%)|
|Ex-dividend date||18 May 2020|
|1y target est||129.79|
(Bloomberg) -- The list of Intel Corp.’s annual supplier award winners tends to read like a who’s-who of the semiconductor industry’s biggest names. This year, it included a little-known Japanese company whose machines have become indispensable in the race to improve semiconductors and whose stock has been rocketing up as a result.Lasertec Corp. is the world’s only maker of testing machines required to verify chip designs for the nascent extreme ultraviolet lithography (or EUV) method of chipmaking. In 2017, Lasertec solved a key piece of the EUV puzzle when it created a machine that can inspect blank EUV masks for internal flaws. Last September, it cleared another milestone by unveiling equipment that can do the same for stencils with chip designs already printed on them. This March, Intel gave the tiny Yokohama-based company an award for innovation, its first after decades of doing business together.“That’s a major milestone for us,” Lasertec President Osamu Okabayashi said in an interview. “It means a lot to be recognized this way as a supplier.”The company’s stock has soared about 550% since the start of 2019, more than twice the gain of the second-best-performing security in the benchmark Topix index. Shares increased about 4% Tuesday, pushing its rise this year to more than 60%.Intel declined to say if it was buying EUV equipment from Lasertec, which already supplies test gear to its rivals Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. The three chip fabricators are the only ones so far to announce EUV plans, because the technology is so complex and expensive. Okabayashi would only say that his company has “two or more” EUV customers.“This can be read as a sign that Lasertec’s tools are indispensable to Intel’s EUV roadmap.” said Damian Thong, an analyst at Macquarie Group Ltd.Read more: Japan’s Star Electronics Stock Will Be Vital to Intel, SamsungEUV is just entering the mass production phase after two decades in development, but investors are already betting Lasertec will be one of the key beneficiaries. The move to EUV overcomes key hurdles to shrinking manufacturing geometries of semiconductors, allowing more and smaller transistors to be crammed onto silicon. It promises to unleash another wave of gadgets that are slimmer, cheaper and more powerful.Last month, Lasertec raised its annual order forecast for the second time this year to 85 billion yen ($789 million) in the period ending June, nearly double the amount it received in fiscal 2019. The company is headed for the fourth straight year of record revenue and profits. Sales will climb 39% to 40 billion yen and profit will jump 76%, according to its estimates. And that’s likely to be just the beginning.Samsung earlier this month said it is building a 5-nanometer fabrication facility that will use EUV to make processors for applications ranging from 5G networking to high-performance computing from the second half of next year. Taiwan’s TSMC is pushing ahead with plans to adopt 3-nanometer lithography mass production in 2022 and announced plans to build an advanced fab in the U.S. Intel’s first product made using EUV is expected late next year.Their primary focus is on so-called logic processors, used to power devices and networking applications, but the new manufacturing technique will eventually filter through into the production of DRAM and other memory chips.Read more: Samsung Takes Another Step in $116 Billion Plan to Take on TSMC“Logic makers will be first to adopt EUV, with memory makers following later,” Okabayashi said. “The real volume of orders will come when they reach mass production stage. Right now it’s 7- and 5-nanometer chips. 3-nanometer is still in development stage.”Okabayashi expects each customer will probably need several of his testers, which could cost well over $40 million apiece and take as long as two years to build. A chipmaker would need at least one machine in its mask shop to make sure the stencils come out right. Another would go into a wafer fab to keep an eye on the microscopic wear and tear that result from concentrated light being projected repeatedly through the chip design stencils.“Lasertec is still trying to get a feel for this market and how big it can be,” Macquarie’s Thong said. “Their stock is moving on expectation of future orders. But there is little actual visibility on the scale of this market, so Lasertec retains a lot of capacity for surprise.”(Updates with share price in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- For BT Group Plc, two things have long been sacrosanct: the dividend and ownership of its lucrative network. In 2020, it seems, the temple walls are being torn down.Over the past few years, carriers across Europe have looked at the vast sums needed to upgrade their fiber-optic connections and roll out fifth-generation wireless networks, and then at the lofty valuations put on existing network assets. One by one, they’ve decided to raise money from the latter to fund the former. It was a puzzle why Britain’s former national telecoms operator continued to be a holdout.On Thursday, the Financial Times reported that BT is in talks to sell a stake in broadband infrastructure division Openreach in a deal that could value it at 20 billion pounds ($24 billion) — twice BT’s market value. The report came a week after the company scrapped its dividend. If true, it would reveal just how urgently the London-based firm needs cash to fund a multibillion-pound full-fiber upgrade program, honor its pension commitments and preserve its investment-grade credit rating, according to Bloomberg Intelligence analyst Matthew Bloxham. There’s also the 5G network to think about.There would be hurdles to a deal — not least, foreign ownership of Britain’s main fixed network. The FT named Australia’s Macquarie Group Ltd. and an unidentified sovereign wealth fund as the potential investors. What's more, Jansen bought 2 million pounds of shares this week — if a deal really were in the works, it's unlikely that BT's compliance team would have permitted such a trade.BT Chief Executive Officer Philip Jansen has already been making a lot of the right moves to get in shape for the challenges ahead. The abandoned dividend and a new cost-cutting program will bring savings of some 5 billion pounds over the next five years, while the U.K. government has pledged a further 5 billion pounds to accelerate the rollout of fiber optic networks. But it’s hard to look beyond the huge appetite for network infrastructure, and the valuations similar assets have attracted.Just last week, Liberty Global Plc’s British broadband business was valued at 9.3 times Ebitda (a measure of operating performance) in a deal to combine it with Telefonica SA’s local mobile unit. BT as a whole is valued at just 1.3 times earnings on the same basis. The operator might have acted sooner were it not for Chairman Jan du Plessis’s staunch opposition to any divestment. Shortly after announcing Jansen’s appointment as CEO in 2018, du Plessis told the Daily Telegraph that 100% ownership of the division was best for “BT, for Openreach and for our stakeholders.” Just last week, when asked about the possible separation of the unit, Jansen responded, “Not now.”But selling a minority stake in the unit looks like the right move to shore up the company’s balance sheet. The right price would help BT stomach the humble pie brought on by a reversal of strategy, and reassure investors that, yes, even after the network investments, one day, the dividend will return.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- BT Group Plc rose as much as 10.3% in Friday trading after the Financial Times reported it’s held early stage talks to sell a multibillion pound stake in network unit Openreach. But analysts quickly said any discussions can’t be live or serious due to insider trading rules.London-based carrier’s Chief Executive Officer Philip Jansen bought 2 million pounds in shares on Wednesday. Other board members and close associates bought hundreds of thousands of shares the same day too, according to a stock market filing on Thursday, meaning they can’t hold insider trading knowledge.“We conclude that the story is false, or at the least, that talks are very early stage and that the approach is not being taken seriously,” said Berenberg analyst and BT’s former head of investor relations Carl Murdock-Smith, citing the share buying.Barclays analyst Maurice Patrick said the share purchases “imply an imminent sale is unlikely.”Read More: BT in Talks to Sell Stake in Network Unit Openreach, FT SaysJefferies analyst Jerry Dellis agreed: “We wonder how that transaction could have been authorized if BT were at the same time engaged in non-public negotiations of such a material nature, even at an early stage.”Spinning out or selling a stake in Openreach is a long-running subject of speculation, and Bloomberg reported investor interest in 2018. But BT management has repeatedly poured cold water on it. When asked about it last Thursday, Jansen said “the answer is: not now.”The unit could be valued at 20 billion pounds ($24 billion) and Macquarie Group Ltd and an unnamed sovereign wealth fund are potential buyers, the FT said, citing people close to the discussions. Both BT and Macquarie declined to comment. BT’s shares yesterday sank below 1 pound per share, hitting 11-year lows.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China presented a mixed picture of its recovery on Friday as it reported industrial production and retail sales data for April. Industrial production increased 3.9% year-on-year, beating analyst forecasts of a 1.5% increase prepared by Investing.com. Meanwhile, retail sales slumped 7.5% year-on-year, against predictions of a 7% decrease.
(Bloomberg) -- China’s factory deflation deepened in April and consumer price gains slowed, signaling ongoing weakness in the world’s second-largest economy.The producer price index dropped 3.1% in the month, versus a forecast 2.5% decline. The consumer price index rose 3.3% in April from a year earlier, the National Bureau of Statistics said Tuesday. That compares to the median estimate of a 3.7% increase and a 4.3% rise in March.The fall in consumer and producer prices inflation reflects weak demand both home and abroad and gives policy makers further cause to increase stimulus as the economy faces its worst slump in decades. Consumer price pressure will likely soften further as the effects of an earlier pig disease outbreak fade, while the factory price outlook is darkened by the collapse in global demand amid the pandemic.“Overall, today’s data showed that price pressures continued to soften and suggested a still fragile recovery in domestic demand,” said Michelle Lam, greater China economist at Societe Generale SA in Hong Kong. “Even though credit growth is rebounding, there remains room for further People’s Bank of China easing, especially when external demand starts to disappoint.”More insight into the pace of recovery from the first quarter slump will be available on May 15, when industrial output, unemployment and other data for April are released.China’s central bank vowed “more powerful” policies to counter unprecedented economic challenges from the coronavirus pandemic in its quarterly monetary policy report Sunday, though without explicitly stating what measures will come next. The PBOC reiterated that prudent monetary policy will be more flexible and appropriate and it’ll keep liquidity at a reasonable level.What Bloomberg’s Economists Say...“Further slackening in China’s inflation in April suggests additional easing by the People’s Bank of China is needed. While these data may not be a trigger, we expect the central bank to deliver, especially with the global slump adding to downward pressure on the economy.”David Qu, EconomistFor the full note click herePork prices, a key element in the country’s CPI basket and a source of inflation owing to a previous swine fever outbreak, rose 96.9% from a year earlier, moderating from March’s 116.4% gain. Food prices, as a whole, also eased from last month, rising 14.8% from a year ago.While food and commodities helped push down headline price gains, underlying inflation suggests that domestic demand remains sluggish. Core inflation, which removes the more volatile food and energy prices, slowed to 1.1% from a year earlier after 1.2% in March.Factory deflation, however, is a bigger concern for policy makers. Falling factory product prices, weighed on by the oil price decline, made it hard for companies to generate profits and expand businesses. Weaker external demand also bodes ill for exporters’ outlook.“Deflationary pressure far exceeds inflationary pressure this year and it’ll be very hard to turn it around,” said Larry Hu, Chief China Economist at Macquarie Group Ltd. “But this opens up a window for rate cuts and a deposit rate cut is just a matter of time.”(Updates with economist comments)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Macquarie Group Ltd. slashed its dividend as the global economic shutdown sent impairments soaring, ending a seven-year run of profit growth at the Australian investment bank and infrastructure manager.Chief Executive Officer Shemara Wikramanayake also refrained from the bank’s usual practice of providing an earnings outlook, saying the uncertainty caused by the virus leaves the bank “unable to provide any meaningful” guidance for this year.Net income fell 8% to A$2.73 billion ($1.8 billion) in the 12 months ended March 31, Sydney-based Macquarie said Friday, its first profit drop in eight years. Impairments rose to A$1 billion, almost doubling from A$552 million last year. The final dividend was cut 50% to A$1.80 per share.Click here for more detail on the earnings reportsStill, Macquarie shares closed up 5.7% in Sydney, amid relief the result wasn’t worse. Australia’s commercial banks have endured a torrid earnings season, with Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. both deferring dividend payments.“The result is decent given the tough environment,” Aberdeen Standard Investments investment manager Jason Kururangi said. “They’re well positioned -- as much as they can be -- for a tougher period ahead.”Wikramanayake also struck a more positive note on a call with analysts, stressing there is still decent client activity. “Deals are still happening,” she said.“Ideally, we like to do things face-to-face but we’re still able to get on with making investments,” Wikramanayake said in an interview. Citing changes such as virtual data rooms, operating remotely for a couple of months “hasn’t been a material disruption,” she said.‘Favored’ Position“We are comfortable with Macquarie and believe they are well positioned for opportunities in the future,” said Max Cappetta, chief executive officer of Redpoint Investment Management which manages about A$10 billion. “Obviously the Covid crisis is challenging on a number of fronts, however management has consistently demonstrated strong governance and long-term thinking. That’s one of the reasons we’ve favored our position in Macquarie over other banks in the last few years.”Macquarie is the latest global bank to report sharply higher impairments as lenders grapple with assessing the impact of the virus. Its global footprint and range of operating activities, from infrastructure management to aircraft leasing, M&A advisory, oil trading and retail banking, offers both more diversification and sources of risk.Bad-debt provisions rose in all divisions. Wikramanayake told analysts the bank took a mixture of specific charges against particular holdings -- including a small cruise business and a private jet terminal -- as well as accounting for the general economic impact of the virus.Profit contribution from the ‘annuity-style’ operations, which include the less-cyclical asset management unit, rose 13%, while the share from market-facing businesses, including commodities, fell 35%.“The result likely offers something for everyone,” Brendan Sproules, banking analyst at Citigroup Inc. wrote in a note to clients. “Bears would point to a material fall in performance fees and investment income prompting a lack of guidance. Bulls may be prepared to look through the volatility in earnings and focus on opportunities to deploy record surplus capital of A$7.1 billion in volatile markets.”(Adds closing share price, fund manager quote in 5th.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Macquarie Group has cut its full year dividend by half after net profit for the full year ended March 31 dropped 8 per cent on higher credit impairment.
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Don’t expect Russia or Saudi Arabia to bail out shale again. Balancing the oil demand destruction resulting from the global spread of the Covid-19 virus requires action from all producers, and the leaders to make it happen.(Bloomberg Opinion) -- The forecasts for oil demand are grim. Analysts from Goldman Sachs Group to Macquarie Group and commodities trader Trafigura Group estimate the peak hit to global demand will be anywhere from 8 million barrels a day to 11.4 million. Consultancy IHS Markit says global oil markets face the possibility of the biggest crude surplus ever recorded. That is too big for any single producer, or small group of producers, to deal with alone. And it’s become painfully clear that they have no appetite to do so anyway.In the space of two weeks Saudi Arabia has gone from being threatened with legal action in the U.S. for holding oil off the market to facing calls for legal action against it for flooding the market with it. It’s not lost on the kingdom's leaders that the people who accused them of artificially inflating the price of oil by not pumping at capacity are the same ones who are now accusing the country of dumping crude since it opened the taps.Don’t be surprised that it has no desire to ride to anyone’s rescue. No doubt it would only be pilloried again for pushing prices up as soon as motorists complain about the cost of filling their tanks.We have all become too used to Saudi Arabia (and the others in the Organization of Petroleum Exporting Countries) balancing supply and demand while the rest of the world pours cash into pumping as much as it can — even while destroying shareholder value on the way. Three years ago I suggested that U.S. lawmakers should applaud OPEC's market management — now I'm going to argue that they need to go further and join them in it.The virus-related demand destruction will pass at some point, and the time will come when the world will need everyone to be pumping again. It makes no sense to allow the shale industry to be hollowed out, and why should the U.S. or other large producers expect someone else to sacrifice production when they’re not willing to give up any of their own? Soaking up crude by putting it back underground might bring temporary relief — if the Department of Energy can find enough high-sulfur crude pumped by small American producers — but it won't be long until the Strategic Petroleum Reserve is full.Dealing with the oil crisis — just like dealing with the wider health and economic crisis — needs a joined-up international response and leaders worthy of that name to lead it.Sadly, at the moment we seem to be locked into a cycle of finger pointing and tough-guy posturing. Crown Prince Mohammed bin Salman, the de facto leader of Saudi Arabia, appears content with what my colleague Javier Blas described as a period of Darwinian survival of the fittest. Russian President Vladimir Putin says he won't yield to Saudi "blackmail." While Russia would like higher oil prices — what producer wouldn’t — it’s not prepared to act alone, or with a small group of other producers, to keep the rest afloat. Meanwhile, in the U.S., Donald Trump is being pressed by some to consider an import tariff, or other sanctions, on Saudi and Russian crude.But the time for playing the blame game is past. Whether or not Saudi Arabia and Russia did the right thing by initiating a production free-for-all, any solution has now gone far beyond both OPEC and its wider OPEC+ coalition. On Thursday, Trump said he could intervene in an oil-price war between Russia and Saudi Arabia that has left U.S. oil drillers reeling. The time to do so is now. Not by slapping trade barriers on their oil, but by using his deal-making skills to bring them together to agree a united response that includes America and the rest of the world.The U.S., Saudi Arabia and Russia — the world's three biggest oil producers (by far) in that order — should agree deep, but temporary output restraint. Each needs to bring its allies along to share the burden. This shouldn't become an open-ended OPEC++ arrangement, but a one-off, time-limited agreement.It will be painful for oil companies everywhere and I have no doubt there will be howls of protest. But the alternative is the death of the shale sector or, if taken to extremes, possibly even some kind of a war in the Middle East to halt supply.While striking such a deal won’t be easy, there are signs of willingness to help make it happen. The Texas Railroad Commission has signaled its readiness to be part of a solution. I’m sure other U.S. states and Canada will follow.Saudi Arabia and Russia have both decided that high-cost producers outside the OPEC+ group must finally share the burden of balancing the market — if they won't, those high-cost producers may find they bear it all. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Macquarie Infrastructure Corporation (NYSE: MIC) today issued the following statement regarding reports that it was involved in a transaction for Cincinnati Bell.
Unfortunately for some shareholders, the Macquarie Group (ASX:MQG) share price has dived 31% in the last thirty days...
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are...