GCIDowlais Group: Edison
Automobiles and parts - LSE - Mcap: £1,000m - Price: 72p - Update
Margin expansion despite mixed auto markets
Dowlais Group’s traditional automotive and powder metallurgy operations continue to outperform the market, albeit the slowdown in EV adoption has affected ePowertrain, leading to a marginal reduction in expectations. However, the key remains further progress in operating margins (6.1% in the period, up 30bp) on the journey to c 10%. This margin expansion should drive earnings momentum and subsequently share price performance.
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Analyst
David Larkam
Industrials analyst
industrials@edisongroup.com
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