Stellantis(US:STLA) INDUSTRIAL SECURITIES·2024-08-04 03:01Investment Rating - The report maintains a "Buy" rating for Stellantis (STLA N) [2] Core Views - Stellantis reported a 14% YoY decline in net revenue to €85 billion and a 48% YoY drop in net profit to €5 6 billion for H1 2024 The adjusted diluted EPS fell 35% YoY to €2 36 [2] - The company is launching at least 20 new models in 2024 with 10 already in production in H1 Key models include the Ram 1500 Dodge Charger Daytona and affordable EVs like the Citroën C3 Fiat Grande Panda and Opel Frontera [2] - Stellantis leads in plug in hybrid sales in the US and ranks second in low emission vehicle sales It also holds the top market share in Europe and South America and achieved the top position in the Middle East and Africa for the first time [2] - The joint venture between Stellantis and Leapmotor will introduce the C10 and T03 EVs globally starting in Europe in Q4 2024 followed by South America Asia Pacific the Middle East and Africa [3] Financial Performance - Stellantis' 2024H1 revenue was €85 billion down 14% YoY while net profit dropped 48% YoY to €5 6 billion [2] - The company forecasts 2024 2026 sales of 6 04 million 6 24 million and 6 52 million units respectively Revenue is projected at €174 2 billion €182 4 billion and €194 1 billion with net profit expected to be €12 2 billion €13 7 billion and €14 9 billion [3] - Adjusted diluted EPS for 2024 2026 is estimated at €3 89 €5 08 and €5 52 respectively [3] Market Position - In Europe Stellantis holds a 15 7% market share in 2024H1 down from 16 6% in 2023 Peugeot Citroën and Fiat are key contributors with Citroën showing a 22 7% YoY increase in June 2024 registrations [8] - In the US Stellantis' market share dropped to 8 6% in 2024H1 from 10 1% in 2023H1 with a 13 2% YoY decline in sales [9] - Stellantis leads in plug in hybrid sales in the US and ranks second in low emission vehicle sales [2] Product Strategy - Stellantis is focusing on a multi powertrain strategy to capture market share in uncertain times Key models include the Ram 1500 with BEV and extended range versions Dodge Charger Daytona with BEV and ICE options and affordable EVs like the Citroën C3 Fiat Grande Panda and Opel Frontera [2] - The Ram 1500 BEV version offers a range of 350 500 miles while the extended range version can reach up to 690 miles [2] Regional Performance - In Europe Stellantis maintains a strong presence with Peugeot Citroën and Fiat contributing significantly to its market share [8] - In the US Stellantis faces challenges with a 13 2% YoY decline in sales and a drop in market share to 8 6% in 2024H1 [9] - The company has expanded its market share in the Middle East and Africa achieving the top position for the first time [2]