The US-China Trade War: Global Implications
Trump, known for his protectionist rhetoric, has threatened to impose tariffs of up to 60% on Chinese goods—a move that could have significant repercussions for the global economy. While the “Trump Trade” could strengthen the dollar and boost U.S. stock markets, European and Asian markets are likely to feel negative effects.
China’s response will be critical. Beijing might implement selective tariffs on foreign trade while focusing on fiscal policies to stimulate domestic demand and safeguard its economy. However, China has limited room to further devalue the yuan without risking capital outflows and greater instability.
This new phase of economic tensions not only heightens the rivalry between the two superpowers but could also accelerate Chinese productive investments abroad as a way to bypass U.S. tariffs. Meanwhile, Europe may find itself needing to define a strategic position between Washington and Beijing, with significant implications for regional growth.
Trade dynamics between these two powers are likely to impact far more than just U.S.-China relations, creating new economic alliances and redefining global balances.
Find out why! Watch the analysis by Lorenzo Fuscà, Head of Wealth Management, and Stefania Cardone, Investment Advisory at Banca Profilo.
Results for the First Nine Months of 2024
Approvati i risultati dei primi nove mesi del 2024.
In crescita la raccolta totale della clientela a 6,1 miliardi di euro (+4% a/a). Ricavi netti consolidati pari a 53 milioni di euro con un utile netto di 7,2 milioni di euro.
Il risultato operativo raggiunge i 11,7 milioni di euro, con un Cost Income al 78%. CET1 a 22,9%, si conferma essere tra i più alti del mercato, indice della elevata solidità patrimoniale.
Leggi il comunicato stampa.
EGM Analysis 3Q24
Index-fundamental convergence, cautiously optimistic after first half.
In the first nine months of 2024, the number of companies listed on the EGM was 208. There were only 17 IPOs, slowing down from 27 last year. Total capitalization is 9.7 billion euros, with an average of 46.8 million.
Over the past year, the FTSE Italia Growth has recovered around 5% and EGM companies have shown an average six-month growth in revenues in line. This represents a reversal of the trend, considering that in the last three years, the downward trend of the EGM index has not been justified by a worsening of company fundamentals.
Although the convergence between fundamentals and the index gives relief to the segment, we note that the first half of the year has disappointed the consensus, which has reduced both growth and margin projections. Revenues are now expected to grow by 18% in 2024, compared to the 20% estimated five months ago. The EBITDA margin is seen stable at 14% on average this year versus the 15% estimated in May.
The question remains whether possible future initiatives to support the EGM will lead to an acceleration of this convergence. Are we cautiously optimistic? Find out the report by Francesca Sabatini, Head of Equity Research, and Michele Calusa, Equity Research Analyst of Banca Profilo.
We are Proud Sponsors of Next Gems 2024!
The Next Gems Equity Conference is a well-established event fostering dialogue between the financial community and companies listed on the Euronext Growth Milan segment, has reached its fifth edition. Held on October 22 and 23, 2024, at the prestigious Palazzo Mezzanotte in Milan, home to the Italian Stock Exchange, the event featured:
- 48 companies from 34 sectors
- Over 107 qualified investors
- 655 meetings between the “gems” of Italian entrepreneurial excellence and the financial community
Together with COMAL SpA, Cofle Group, DEA – Distribuzione Elettrica Adriatica S.p.A., SVAS Biosana S.p.A., and Riba Mundo Tecnología SA, we had the opportunity to contribute to the growth and visibility of these companies in the unique setting of Palazzo Mezzanotte.
The numbers confirm the significance of Next Gems: over 20% of attending investors came from abroad, particularly from the United Kingdom and Germany, underscoring the appeal of Italian companies in international markets.
The Crisis of German Electric Cars and the Rise of China
In the last two years, Germany, once the locomotive of Europe, has come to a halt. Zero growth and discouraging forecasts for the future weigh heavily on the manufacturing and automotive sectors, partly due to exogenous factors such as the war in Ukraine, but also due to an outdated and shortsighted growth model that is overly dependent on exports. Major Western producers have underestimated the growing Chinese threat and are now forced to close their less profitable plants at home. The price to pay is not only economic but also political, as demonstrated by the rise of nationalist right-wing parties in the recent regional elections.
China, on the other hand, is consolidating its leadership in the electric sector. Direct subsidies in highly competitive sectors have resulted in a record trade surplus. This is evidenced by the great success of BYD from Shenzhen, which has become the world’s largest producer of electric vehicles in just a decade.
Check out the market analysis for September conducted by Lorenzo Fuscà, Head of Wealth Management, and Francesco Menini, Head of Investment Advisory at Banca Profilo.
Autumn Investor Conference 2024
On September 12th, the Autumn Investor Conference 2024 took place!
The event, organized by Banca Profilo, was reserved for institutional investors interested in meeting our top selections of small and mid-cap companies through one-to-one or group meetings, followed by a networking aperitif.
A special thanks to DEA – Distribuzione Elettrica Adriatica S.p.A., COMAL SpA, Gruppo Nusco SpA, HOMIZY, Saccheria F.lli Franceschetti S.p.A Società Benefit, Solid World 3D, SVAS Biosana S.p.A., and everyone who contributed to the success of the event.
Results for the First Half of 2024
Approved the results for the first six months of 2024, which are in line with the objectives of the 2024-26 Industrial Plan.
Total client deposits increased to 6.3 billion euros (+7.4% year-on-year). Consolidated net revenues were 37.1 million euros, with a net profit of 5.9 million euros.
Operating result amounted to 9.6 million euros with a Cost Income ratio of 74%. CET1 ratio stood at 22.6%, one of the highest in the market, confirming Banca Profilo’s financial solidity.
Read the press release.
