At the end of March, the future of logistics was on the road in Berlin. The "Mercedes-Benz GenH2 Truck" stopped at Potsdamer Platz and in front of the Reichstag building. However, the tour of the fuel cell prototype through the German capital did not serve to transport goods. Rather, Daimler Truck promoted the rapid development of a hydrogen refueling infrastructure in Germany. By 2039, the company wants to offer only new vehicles in its global core markets that are CO2-neutral in driving operation. In electrifying its fleet, management is relying on both batteries and H2 powertrains. While such PR appointments have long been routine for the company, it has only recently been beating the promotional drum with equity investors. On December 10, 2021, Daimler Truck was listed on the stock exchange - completing the spin-off from Daimler AG, which now operates as Mercedes-Benz.
Initially, the newcomer presented a strong performance: Compared to the first price of EUR 28.00, Daimler Truck increased in price by more than a quarter by mid-January. But then the stock market novice went into reverse gear. Although Daimler Truck was recently able to regain ground, the share, which is now included in the DAX, is trading well below its initial value (see chart). Like many other industrial stocks, the truck manufacturer was slowed down by a gloomy business environment. In this respect, the latest figures on the European commercial vehicle market speak a clear language: In March, sales declined for the ninth month in a row. For the first quarter of 2022, the industry association ACEA reported a decline of 18.1% to 411,097 commercial vehicles sold. In addition to the difficult economic environment, the sector is struggling with supply chain issues.
Despite all the turmoil, Daimler Truck has presented a bold forecast for 2022. The industry giant is targeting revenue of between EUR 45.5 billion and EUR 47.5 billion, up from EUR 39.8 billion last year. At the same time, the operating result is to increase significantly. The "Trucks North America" division is particularly profitable. Here, CEO Martin Daum aims to sell between 175,000 and 195,000 vehicles in the current year. At the upper end of the planning corridor, the segment would achieve growth of a good fifth. Daimler Truck is represented on the highways of the USA and Canada with its "Western Star" and "Freightliner" truck brands. In addition, the division includes the subsidiary "Thomas Built Buses," known for its yellow school buses, which contributed 38% of the Group's revenue last year (see chart). Investors will find out how business developed in all four industrial segments in the first three months of 2022 on May 17. That is when Daimler Truck will present its interim report. The day after, management will launch a six-day roadshow.
Leonteq is already using the newcomer to the stock exchange as the underlying for an interesting new issue. On May 10, the initial fixing for three different softcallable barrier reverse convertibles will take place. As a single-underlying, Daimler Truck in the product currency CHF offers a coupon of 9% p.a. with a maturity of 18 months. In the EUR version, the quarterly payout is 40 basis points p.a. higher. The barrier will be 59% of the initial fixing in each case. A multi-product on Daimler Truck and the former parent company and current major shareholder Mercedes-Benz will be launched with an identical protection threshold. The coupon on the multi-structure is 12% p.a.. The following applies to all products: As soon as there is a threshold violation, the partial protection expires. In addition, the softcallable function must be taken into account. It makes an early termination and redemption of the respective issues possible.
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