Meet the new DAX 40 constituents
The German flagship index DAX is being increased to 40 constituents from September 20th. The change is the biggest in the history of the index and whilst it is not expected to materially alter the pricing of the index, it could affect the way investors view it.
So, who are the new DAX members?
Airbus is Europe’s answer to Boeing. Based in the Netherlands, it operates in the aerospace and defence industry. Through to September 10th the stock had rallied 26% year-to-date after taking a battering during the 2020 selloff, though it has yet to recover previous highs. Revenues rose 30% in the first half of 2021 from a year earlier, whilst the six-month period also saw the company return to profit after posting a loss of almost €2bn a year ago.
Zalando is an online shoes and fashion retailer. It has undergone rapid expansion, accelerated by the Covid-19 pandemic as shopping trends shifted online. Revenues surged by 40% in the first half of 2021, whilst net income for the period grew from €36m a year before to almost €155m. Shares were trading just shy of €100, with the company commanding a market cap of around €25bn.
Siemens Healthineers AG
Siemens Healthineers develops technology used predominantly in the healthcare industry. Products in areas such as diagnostic and therapeutic imaging, laboratory and point of care diagnostics, and molecular medicine, are among its specialities. YTD gains of around 36% have seen it ascend all-time highs as demand for its products looks to be heading only one way. In the nine months to the end of June revenues were up 21% and net income up 29%.
Symrise is a supplier of fragrances, flavourings and ingredients used in cosmetics. Shares are up roughly 10% in 2021 and the market cap has grown to over €16bn. In the six months to the end of June, revenues grew 5% to €1.91bn, whilst net income increased 16% to over €196m.
HelloFresh is an online food services company that delivers pre-portioned ingredients to subscribers, allowing them to make home-cooked meals based on a recipe provided. As the market for online, home-delivered food grew rapidly during the pandemic, HelloFresh has enjoyed rapid growth in sales and its share price. Sales rose to €1.56 billion in the June quarter from €972 million a year earlier. It sees full-year revenue growth of 45-55% this year. Shares have rallied over 40% in 2021.
Sartorius AG Vz
Sartorius manufactures pharmaceutical and laboratory equipment, placing it squarely at the heart of the biotech sector. Needless to say, growth has rapid. In the first half of the year order intake rose 82.4 percent; sales revenue was up 60.1 percent; whilst underlying EBITDA margins improved markedly to 34.1 percent. Underlying EBITDA rose 89.2 percent to €555 million, whilst net profit climbed 108.7% to €259m. Shares in the group have risen 125% YTD.
Porsche Automobil Holding
Porsche makes cars. It is a holding company of VW with investments in the automotive industry. Shares have had a good year, with the stock up 50% YTD to its highest since the financial crisis of 2008.
Brenntag is a chemical distribution company based in Essen. In the six months through June 2021, revenues rose 9% to €6.6bn but income fell 2% due to a 20% spike in operating expenses. Nevertheless, shares have made all-time highs this year with a YTD gain of 32%. The consensus rating for the stock is ‘hold’ based on the 12 analysts who cover the stock.
Puma is a multinational that designs and manufactures athletic and casual footwear, apparel and accessories. It’s done well from the growing demand for leisure clothing (see JD Sports) and probably got a boost from Italy – who wear Puma kit – winning Euro 2020. The stock is up roughly 15% so far in 2021.
Qiagen is a diagnostics company that provides sample and assay technologies for molecular diagnostics, applied testing, academic and pharmaceutical research. It’s been a leading provider of tests for Coronavirus and variants. Profits doubled in the first six months of the year but was forced in July to cut its earnings and revenue guidance for the year because as it anticipates vaccines will cut demand for tests.