Buy Signal on HELLA GMBH & CO (HLE-DE)
Hella is a € 4.7bn market cap and is specialized in the manufacture of lighting and electronic components and systems. Business activity is split between the sale of automotive lighting and electronic components and systems (84% of sales) including lighting components and systems (headlights, taillights, signal lights, interior lighting, etc.), electronic products (modules for central controls, access systems, sensors, vacuum pumps, etc.) primarily intended for vehicle manufacturers. The second segment consists on the production and sale of spare parts (16% of sales) intended for wholesalers of spare parts and independent garages; and the last segment is the manufacture and sale of special lighting and electronic components and systems (6% of sales) intended for manufacturers of agricultural and construction machinery, buses, trailers, boats, etc.
The geographic breakdown is made of Germany (34%), Europe (31%), Americas (18%) and others (16%).
Hella just reported its figures for the fiscal year 19/20 showing negative impact related to the covid crisis, but also an outperformance on the auto parts market. The company expects an EBIT margin between 4 and 6% for its fiscal year 2020/21.