Daimler AG DDAIF – US OTC. Olivier Fontenelle 10/30/2013. Main Business Lines. Key future success drivers. Significant product launches Recent revenue and profit growth N ew China strategy Positive macro environment “Turnaround story”. Recent Results.
Automotive industry is highly cyclical, the development schedule drives sales. MB is in the middle of a huge product refresh, with highly competitive vehicles.
“Mercedes-Benz has struggled in China since the start of 2012, when overall demand for luxury cars began weakening amid an economic slowdown in the world's second-largest economy that affected luxury car brands in general.
Mercedes fared worse than most because of a dearth of new or redesigned models and what industry insiders and key operators of Mercedes-Benz dealers described as a short-sighted volume grab that hit the brand's profitability.
Mercedes-Benz's sales rose just 4 percent to 206,150 cars, last year. By contrast, sales of Audi cars rose 32 percent to 407,738 cars, while BMW's volume increased 41 percent to 313,638 cars.”
Strong growth in UK (+28%), Turkey (+31%), Russia (+20%), China (+26%)
Still #1 in Germany with 9% market share. #1 in Japan (+32%)
Mercedes is coming back from the bottom. They:
MB Cars: up 14%, Trucks: up 4%, Vans: up 17%, Buses: 17%
Long-term target: 9-10%
Audi/BMW ~ 10%+
YoY growth of 15%
TTM P/E: 10.16
Forward P/E: 14.76
~$3000 or 37 shares
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