KION shares

Upward trend in the equity markets; KION shares reach all-time high

Sustained price gains were the dominant trend in the German equity markets in the first half of 2021. The prospect of a strong economic recovery and growing corporate profits as a result of further easing of the restrictions imposed to tackle the coronavirus pandemic also provided the DAX with a tailwind. The index rose by 13.2 percent in the first half of 2021, reaching a record high on June 14. The MDAX did not go up as steeply, adding 10.6 percent in the six-month period.

In this upbeat trading environment, KION shares also performed very well. Underpinned by the positive financial results for the final quarter of 2020 and first quarter of 2021, the shares rose at a faster rate than their benchmark index, the MDAX. The KION share price jumped to €89.88, which was 26.3 percent higher than at the end of 2020. On June 28, the Xetra share price reached an all-time high of €93.28. At the end of June 2021, market capitalization stood at €11.8 billion, of which €6.5 billion was attributable to shares in free float.

Share price performance in the first half of 2021 compared with the DAX and MDAX

Share price performance in the first half of 2021 compared with the DAX and MDAX (line chart)

Well-attended virtual Annual General Meeting

KION GROUP AG’s 2021 Annual General Meeting on May 11, 2021 again took place as a virtual event without shareholders being physically present. More than 300 people watched the proceedings. Approximately 84 percent of shares were represented and all of the motions were approved by a majority of votes. This included the distribution of a dividend of €0.41 per share, resulting in a total distribution to shareholders of €53.7 million. With earnings per share for 2020 of €1.81, this equates to a dividend payout rate of around 25 percent.

Stable shareholder structure

As far as the Company is aware, the shareholder structure remained unchanged in the reporting period. Weichai Power Co., Ltd., Weifang, People’s Republic of China, had a stake of 45.2 percent as at June 30, 2021, which means it is still the biggest single shareholder, while KION GROUP AG continues to hold 0.1 percent of the shares. The free float therefore accounted for 54.7 percent as at the end of the second quarter.

Shareholder structure as at June 30, 2021

Shareholder structure as at June 30, 2021 (pie chart)

Mainly buy recommendations

A total of 21 brokerage houses currently follow and report regularly on the KION Group. As at June 30, 2021, 14 analysts recommended KION shares as a buy, six rated them as neutral, and one advised selling them. The average target price specified by the sell-side analysts was €95.52 at the end of June.

Positive outlook from Standard & Poor´s

In May 2021, Standard & Poor’s confirmed its issuer rating of BB+ and raised the outlook from stable to positive. The senior unsecured rating from Standard & Poor’s remains unchanged at BB+. Furthermore, the KION Group has an investment-grade credit rating. Fitch Ratings has awarded a long-term issuer default rating of BBB– with a stable outlook and a short-term issuer default rating of F3 since October 2020. The new bond placed by KION GROUP AG in September was given a rating of BBB–.