The concern is now for the margin retention. Although the results of the first quarter showed an increase in revenues compared to the same period of the previous year, the trend of global indices ccontinue to be negative.
Massimo Trabattoni, Head of Italian Equity of Kairosin its monthly column “Italian Times” emphasizes how on secondary market it's still time to great caution and in any case the markets remain trapped by the negative macroeconomic variables which are also beginning to make their way into company accounts.
Analysts have already moved forward cutting the estimates of revenues and margins for the next quarters, but the doubt remains if they cut enough.
In this context therefore have the opportunity to access the primary market it can be a good strategy to increase returns. Four new IPOs are on the way.
Also in the second quarter the global indices are negative
The trend of global indices continues to be negative even in the second quarter FTSE MIB which has lost around -12% since the beginning of the year, slightly better thanEuro Stoxx -14.5%, of the Chinese indices (CIS -17.5%; Hang Seng -11.5%) and American ones (Dow Jones, S&P and Nasdaq at -14%, -18% and -27% respectively).
This relative outperformance can be explained, at least partially, by the composition of the FTSE MIB itself: the index is more exposed to sectors that have had a less negative performance than others, such as banks, or even positive ones such as oil and utilities. And these three sectors alone account for more than 60% of the index. Conversely, the sectors that have done worse since the beginning of the year, namely technology and retail, have a very low weight in the FTSE MIB.
As proof of the fact that in any case the Italian equity has not been spared from the global sell-off, there is the trend of the mid and small cap indices such as the STAR which has lost 25% since the beginning of the year.
Yet the quarterly reports showed strong demand and higher-than-expected revenues
In recent weeks the large listed companies, in announcing their quarterly reports, highlighted one strong question come on consumption that come on services. Question that is reflected in a revenue growth compared to the same quarter a year earlier, which was for most companies in double digit e higher than analysts' expectations.
A very different matter however with regard to the profitability.
THEcost increase mainly related to logistics, energy and raw materials sta eroding the margins of companies that, despite constant price increases, cannot keep up with the inflationary pressure.
Maintaining margins has therefore become the main concern of investors, especially since there are many CEO hanno dato little reassuring messages for the quarters that will come with respect to the various themes that are driving inflation.
Among these, the most important to keep track of are the temporary ones lockdown in China (focal point of the global supply chain) and particularly in port cities such as Shanghai, la semiconductor shortage (now fundamental components in countless products from cars to telephones) e the high price of oil and other raw materials such as metals and grain resulting from the war in Ukraine and the resulting Western sanctions on Russia-Ukraine
By June, IPOs were expected for 4 companies with sustainable profits over time
Therefore, if on the secondary market it is still time for great caution awaiting the resolution of macroeconomic issues, then some opportunities come from return to Piazza Affari, after a few months of freezing, del primary market.
Within end of the first semester of the year are in fact expected initial public offerings (IPO) of 4 companies of a certain size and importance or.
Here they are: Fullness which is the partial spin-off of the renewables and distribution part of the ENI group, From Nora, one of the European technological leaders in the world of hydrogen both on the hydrolysis side and on the fuel cell side, Chiorino, a company with a global footprint active in the production of conveyor belts and transmission belts, selle Royal, a group that encompasses the most important brands all over the world in the high-end bike saddle sector.
All four of these companies operate in structural growth markets and have a competitive advantage of a technological nature that makes their profits sustainable over time.
Finally, they should also come to market a reasonable valuations, there having just been a significant general repricing of multiples to the downside.
