How to profit from growth in the Recreational Vehicles Sector?

24th May '16 by PhilHofGrowYourDough

27 comments 17405 reads

Hi,

Anyone else noticing the strength of companies supplying recreational vehicles?

I've owned French company Trigano (EPA:TRI) for about a year now and I'm currently sat on 76% gain. It's still go a stock rank of 95 and has seen seen strong growth.

I've just found another RV specialist, the US based £DW. It has an excellent track record of growth and is sat on a stockrank of 96.

I've also notice on my facebook feed that friends are buying old VW campers and getting restored. Also last year I went on a Eurocamp holiday in Italy and to say the camping/RV culture is huge is an understatement. It increased my confidence in the RV market.

I also saw a programme about the Tony Blair election campaign and how they targetted 'Mondeo man' as they were millions of them back then. Now it seems we have a little more cash in out pockets and were driving more expensive vehicles, perhaps also suggesting surplus cash for fun vehicles.

Anyone spotted any other RV gems?

Phil

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in € million

2018

2017

Turnover

1,096.4

749.1

Recreational vehicles

1020.0

681.1

Leisure equipment

76.4

68.0

current operating income

104.0

52.5

of which Recreational vehicles

102.7

51.3

of which Leisure Equipment

1.3

1.2

Other expenses and operating income

(1.6)

17.3

Operating income

102.4

69.8

Net profit

72.1

56.6

PhilHofGrowYourDough

7th Jun '16

Nice. Perhaps the PEGR will become more favourable over the next few weeks.

I went to reduce my holding Trigano today which has doubled. It's a bit flat at the moment and I'm a bit too exposed to it. I went to sell half of my holding and broker ballsed up and sold the lot. Doh!

Hopefully they will have straightened it out with any penalty to me.

Best of luck
Phil

23rd Nov '16

Trigano gave a full year update earlier this week with operating profit up 56% ...

http://www.stockopedia.com/share-prices/trigano-sa-EPA:TRI/news/reuters/brief-trigano-fy-operating-profit-up-561-pct-to-1001-million-euros-urn:newsml:reuters.com:20161121:nFWN1DM0K5/

Nov 21 (Reuters) - Trigano SA TRIA.PA :
* FY current operating profit 100.1 million euros ($106.12 million) versus 64.1 million euros year ago
* FY net profit 89.7 million euros versus 59.5 million euros year ago
* FY revenue 1.31 billion euros versus 1.08 billion euros year ago
* Proposes FY dividend of 1.0 euros per share
* Sees significant growth in activity and results for 2016/2017

Carey Blunt

But had you sorted the broker error out and got back in?

Yeah they fixed their error.

Rusty2

Hi Phil,

I was looking at your fantasy fund, I note the COR has fallen back about 15% and has 5 bears on IchimokuTrader, are you considering selling now?

Hi Herbie,

Yes I'm close to letting it go.
It's sat right on my stop and what will make me sell is a decisive break below the cloud rather than it trending sideways.

The recent decrease in the share price is due to the placement of 10percent of shares on the market but the parent company.

So that has tempered my desire to sell but if it does break conclusively away from the Kumo I'll sell.

Cheers
Phil

OK thanks Phil for explaining. I'm considering upgrading to the European shares on here, at the moment I'm a bit in the dark.

underscored

29th Nov '16

Just to say thanks for highlighting this sector! I am up 35% on THOR since highlighted here. Please point out other sectors you are seeing momentum in, I know you were on the fish farmers before they doubled ;)

Glad you did well out of it :-)

I'm still in Trigano but never did get into Thor.
I did try to buy Drew Industries but couldn't hold them in my SIPP or ISA which is a shame as it heading towards doubling up.

18th Apr '17

Another good set of figures for Trigano today.

Historically it seems to have been H2 weighted but over the last couple of years that differential seems to be closing.

Two period averages for Sales, EPS and Margin show a progressive improvement over the last six periods (3 years). The two period average is the 2nd row and the third row is the %age change for each two period average

Sales	-6	-5	-4	-3	-2	-1
467.2	479	596.6	621.1	696	749.1
	473.1	537.8	608.85	658.55	722.55
		14%	13%	8%	10%

EPS	-6	-5	-4	-3	-2	-1
1.44	0.58	2.62	1.68	3.05	2.95
	1.01	1.60	2.15	2.37	3.00
		58%	34%	10%	27%

Net Margin	-6	-5	-4	-3	-2	-1
4%	2%	8%	5%	8%	8%
	3%	5%	7%	7%	8%
		62%	28%	1%	18%

Even though it's one of my biggest positions I'm tempted to add more if the market reacts positively to the news.Current estimates for FY 2017 is EPS of 5.25 Eur and they have just reported 2.95 Eur in H1 alone. Given that the company is normally H2 weighted I'd suggest that estimates are going to rise and this will be bring the PEG (which is only 1.2 at present) down.

The company is investing for the future and reports ...

* H1 recurrent operating income EUR 52.5 million versus EUR37.6 million year ago

* Expects a sustained activity in the second semester

Best of luck
Phil

26th Mar '18

Trigano just keeps on delivering ... http://lesechos-comfi.lesechos.fr/actualite.html?id=770359

* First half sales increase of ~19% (after adjustment for acquisitions & exchange rates)~

* First half-year results should increase substantially compared to 2016/17 due to activity growth and changes in the scope of consolidation.

* Furthermore, the high level of leisure vehicles order backlog points to a sales increase in the second half-year.
Trigano will pursue its investment programmes aimed at strengthening its production capacities, enhancing the productivity of its factories and improving its profitability.

* A special effort will be made over the coming months to increase distribution networks density in Europe in order to further improve market shares of leisure vehicles.

15th May '18

Another set of good results from Trigano

Increasing revenue, increasing profit and increasing margins. Continued investment.
Some concerns though including recruitment challenges, an end to a two year project.

I think I'll tightening stops on this one as a result. Can't complain though I've had a very good run with them.

Half year results

Current operating income: 9.5% of sales in the first half of 2018

in € million	2018	2017
Turnover	1,096.4	749.1
Recreational vehicles	1020.0	681.1
Leisure equipment	76.4	68.0
current operating income	104.0	52.5
of which Recreational vehicles	102.7	51.3
of which Leisure Equipment	1.3	1.2
Other expenses and operating income	(1.6)	17.3
Operating income	102.4	69.8
Net profit	72.1	56.6

Consolidated current operating profit amounted to € 104.0 million (+ 98.3%) and represented 9.5% of sales (7.0% in 2016/2017). The results of the period benefited from the strong growth of the business, the continuous improvement of productivity on most sites, the control of the evolution of the general expenses as well as, of course, the results of the companies newly integrated. Excluding scope changes, current operating income increased 52.0% to € 79.7 million.

Consolidated net profit amounted to € 72.1 million (€ 56.6 million in 2016/2017). The first half of the previous fiscal year recorded another operating income of € 17.8 million, corresponding to the revaluation of Trigano's stake in Auto-Sleepers following the acquisition of the majority and the consequent modification of consolidation. By eliminating this transaction from the income statement for the first half of 2017, net income increased by 85.6%.

During the first half of the year, Trigano sold some of its treasury shares. This transaction generated a net profit of € 14.9 million, which did not impact the result and was recognized directly in equity.

In addition, Trigano continued its investment program: € 29.1 million was invested during the first half of the year (€ 20.9 million in 2016/2017).

The acquisition of Adria has led to numerous changes in Trigano's assets and liabilities; this transaction generated, in particular, the activation of a goodwill of € 134.3 million and the recognition of the value of the brands for € 28.3 million. Despite the importance of the investment made, Trigano maintains a particularly strong financial structure: net debt, traditionally at its peak at the end of the first half, reached € 160.9 million (€ 24.0 million in 2017) 24.5% of consolidated shareholders' equity (4.5% in 2017) and consists mainly (for € 118 million) of medium-term debt related to commitments to buy back minority shareholders.

Prospects

The rapid and continuous internal growth over the last three years, combined with major acquisitions, has radically changed the size of Trigano. Management structures and systems will be adapted to take account of this evolution and derive the benefits.

Trigano also encounters recruitment difficulties related to labor shortages caused by the economic recovery. Trigano will invest in improving its attractiveness to encourage the hiring of quality staff in its subsidiaries.

The restoration of the motorhome stock by the distribution networks that Trigano has benefited from for two years is now complete. To maintain sustained growth, Trigano will build on a still dynamic European market and continue its efforts to densify the network of distribution networks in Europe in order to increase its market share once again.

Correction:

Actually the net margin has reduced to ~6.6% from 7.6% in H1 2017 and 7.3 in H2 2017

abtan

Morning Phil

I took a small position in Trigano a while back so was also interested in the results last night.

I too was put off by the decrease in net margins, until I noticed that H1 2017 included an exceptional revaluation profit of 17.8m EUR.

Stripping this out produced the following increasing net margin figures:

H1 2017 = 5.2%

FY 2017 = 6.4%

H1 2018 = 6.6%

Operating profit margin remained constant vs H1 last year (9.3%), with an important H2 weighting to come. Full year effect of the Adria acquisition still to come and the forecasts on Stocko look reasonable.

With the high level of cash generation and seemingly manageable growth levels, the only negative I took from the statement was the high debt levels (I would have thought labour shortages due to economic recovery was a "good" problem).

I will continue to hold.

Andrew L

Australia listed ARB Corporation? If 4X4's can be described as recreational vehicles. Looking at the definition of recreational vehicles on Google I guess not. Or at least very borderline.

18th May '18

PhilH - looking at Triango's website and I am amazed there is so much money in camper van type accessories. But then who would of thought you could get rich off toilet cleaner and look at the share price of Reckitt Benckiser.

2nd Jul '18

Q3 figures out for Trigano at close of play today.
Share price has been weak since early June after hitting record highs.
I doubt it's related to Trump's proposed tariffs on EU vehicles as Trigano only has a small rest of the world market.

I suppose it could be a bit of a tree shake to loosen weak holders in the run up to the results?
We shall see later today!

Disclosure: Trigano is my biggest holding

3rd Jul '18

BUZZ-Trigano: worst day in 10 yrs after Q3 miss

Q3 sales were up 24 pct at EUR 699.4 MLN but 3 pct short of Kepler Cheuvreux's estimates, a 5 pct miss compared to Portzamparc's expectations

Q3 results dented by decline in sales in UK and delivery issues

Kepler Cheuvreux says delivery issues apart, Q3 sales would have been only 1 pct below estimate, sees co to "recoup almost in full in Q4" - cuts PT 4.2 pct to EUR 182

Hi Phil

Thanks for the update.
I saw the results and sold out first thing this morning.

My take was that core Q3 revenue were flat year-on-year, as the usual increase in Q3 sales had simply taken place in H1 instead (no doubt due to the weather).

Still a sound company, with plenty of acquisition growth to be factored in going forward, but with an earnings miss and a high valuation (and a volatile market) I felt it better to exit.

Cheers
A

Yes I've decided to sell up too.

No grumbles I've had a good run with them.
I would have sold them earlier but there was a portfolio glitch with my broker preventing me from selling online and I had to go out.

Decision to sell is based upon ...

- Price momentum lost
- I think EPS estimates will be trimmed too
- Growth no longer as cheap and with EPS estimates being trimmed the PEG(R) will increase too
- Stocko's research into share price movement post profit warnings

I still think there is more potential longer term but for now I think it'll struggle for a while.
I'll take the funds and look for better opportunities.

I've held since Feb 2104, so one of my longest holdings.

Best of luck
Phil

How to profit from growth in the Recreational Vehicles Sector?

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PhilHofGrowYourDough

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