STOCK EXCHANGE: A strong day of growth on the Helsinki Stock Exchange – Earnings warnings were received in both directions

The first day of July, and at the same time the whole semester, was full of faith in a better tomorrow. The week started with a rise of 1.4 percent, when the general index of the Helsinki Stock Exchange finally closed at 10,076.34 points.

The most traded stock of the day was Nordea with almost 70 million shares traded daily. The company’s share is approximately 2.7 percent. The biggest riser on Monday was Merus Power, whose share rose 6.3 percent. Kovi was the hard counter, on the other hand Nightingale Healthwhose share plunged by about 12.2 percent.

Nokia tires said that he produced the first tire in his factory under construction in Romania. According to the company, the construction project of the new factory has progressed on budget and on schedule, and commercial tire production will begin at the factory in early 2025. The foundation stone of the factory was laid in May 2023.

When the new factory reaches full capacity, it will employ around 500 people. The production capacity of the new factory is estimated to be six million tires. The factory worth around 650 million euros can be expanded in the future as well. The company’s shares rose by approximately 2.1 percent on Monday.

Result warnings in both directions

Pharmaceutical company Orion raised its 2024 guidance for both turnover and operating profit. Orion and MSD have used the option of the co-development and co-commercialization agreement with MSD regarding opevesostat and other drugs that inhibit the activity of the CYP11A1 enzyme to change the agreement into a worldwide exclusive license agreement for MSD, Orion’s press release states.

As a result of the agreement, Orion will release an amount of 60 million euros from its balance sheet, which was originally set aside to cover the company’s share of the accumulated development costs related to joint development. The item in question will have a positive effect on Orion’s turnover and operating profit in the third quarter of 2024.

According to the new guidelines, the company’s turnover is estimated to be 1,440–1,480 million euros, while 1,340–1,410 million euros were previously forecast. Regarding operating profit, the guidance changes to 350–380 million euros from the previous 280–310 million euros. The pharmaceutical company’s class B share reacted to the news with an increase of about 4.0 percent.

Manufacturer of metal alloys Afarak estimates that the EBITDA for the first half of 2024 will be 4–5 million euros, which means a 70 percent decrease compared to 2023. In addition, the turnover for the first half of 2024 is expected to be 70–75 million euros, which means a 26 percent decrease compared to the same time last year. The company’s share fell by 8.0 percent following the news.

Finns on corporate acquisitions

IT service company Tietoevry extended the schedule for the strategic evaluation and sale of the Tech Services business. The company said it will provide more information on the matter by the time of the third-quarter results report. The company’s Q3 results announcement is on October 24. Tietoevry’s share price rose by about 1.9 percent.

Kemira said he had signed the contract Noritin on the purchase of the reactivation business on June 28, 2024. This is Kemira’s first step in the activated carbon market and in the removal of micropollutants. The turnover of the purchased facility in 2023 was several million euros. Nine employees will transfer to Kemira as part of the deal. The company’s share rose by approximately 1.0 percent.

A software company Lemonsoft said that he would buy the software developer of the rental business Applirentin the entire stock. The purchase price is approximately EUR 2.3 million. In addition, the parties have agreed on an additional purchase price, which is now based on the 2024-2026 operating profit of the company being purchased. The price in question is a maximum of 0.8 million euros. Lemonsoft’s stock reacted to the news with a drop of around 2.4 percent.

They develop treatments for Parkinson’s disease Herantis Pharma tells that Michael J. Fox Foundation for Parkinson’s Research and Parkinson’s Virtual Biotech jointly finance Herantis’ phase 1b clinical trial and ongoing biomarker research with research funding of 3.6 million euros. The company’s shares fell by about 3.0 percent on Monday.

Multidisciplinary company At least subsidiary Telko has implemented Swed Handlingin procurement in Sweden. It was decided to pay the purchase price of the shares in full with a cash consideration of 473 million kroner. In addition, Telko has committed to pay in cash in 2026 an additional purchase price of SEK 0-130 million based on the results of 2024-2025, which depends on the development of the company’s profitability. The company’s share fell by about 0.7 percent.

Kalmar’s first stock exchange day

A manufacturer of cargo handling equipment Cargotecin the division took place at the turn of the month, and the company, known for port cranes, separated from the company into its own listed company Kalmar started on the main list of the exchange this morning. Cargotec remained the manufacturer of vehicle load handling equipment Hiab and operating in sea cargo and load handling MacGregor.

Cargotec’s closing price before the split on Friday was 74.95 euros. Cargotec shareholders have received one Kalmar share for each Cargotec share they own. Analysts had guessed that Kalmar was slightly more than 40 percent of the value of the whole.

In the morning, Kalmar specified its outlook and estimated the operating profit percentage to be more than 11 percent this year. Cargotec estimated in May that the costs arising from operating as an independent company will have a negative effect of approximately 1–2 percentage points on Kalmar’s annual result of Cargotec’s Kalmar business. So now the same guidance level remained, despite the negative effect of the additional costs.

Cargotec’s share closed at around EUR 47.2 and Kalmar’s at around EUR 26.4. The total value was therefore around 73.6 euros at the end of the day.

The view of hedge funds is negative

Kepler Cheuvreux updated the split Cargotec’s target price to 32.0 euros from the previous 58.0 euros. At the same time, the company’s recommendation to reduce was repeated.

Hedgerahasto Marshall Wace said that he had taken almost 2.3 million shares in the short-position elevator company Kone. The amount corresponds to approximately 0.5 percent of the company’s share capital.

Hedgerahasto Worldquant increased its short position in Nokian Tires by 1.4 million shares. The amount corresponds to approximately 1.0 percent of the company’s share capital.

Investment company Triton’s control community Crayfish BidCo got the ownership right listed on the Helsinki Stock Exchange Caverion’s to all minority shares. The shares will be removed from the Nasdaq Helsinki stock exchange list today.