FT : White House unveils ban on US investment in Chinese tech sectors

White House unveils ban on US investment in Chinese tech sectors
Biden cites security threats as he restricts capital for companies linked to Chinese military

The Biden administration will ban US investment into quantum computing, advanced chips and artificial intelligence sectors in China, as it ratchets up efforts to ensure the Chinese military does not benefit from American technology and capital.

President Joe Biden on Wednesday issued an executive order establishing the prohibitions, which will largely affect private equity and venture capital firms as well as US investors in joint ventures with Chinese groups.

A senior US official said it would create a “very targeted” programme that would focus on the three sectors that the Biden administration has also marked out in a series of other technology-related measures aimed at China. It will require firms to inform the government of investments into the three sectors even in cases where the prohibitions will not apply.

“We want to provide bright line guidance on what is prohibited and separately what is notified,” the official said.

The outbound investment order is the latest in a number of actions designed to limit Chinese access to advanced technology in what US national security adviser Jake Sullivan has called a “small yard, high fence” strategy.

Washington has said the rule, which will not take effect until next year, will protect US security. But Beijing has countered that previous US actions are designed to crimp its technological progress.

A second US official said: “This executive order protects our national security interests in a narrowly targeted manner, while maintaining our longstanding commitment to open investment.”

The first official added that the administration did not anticipate expanding the order to other areas such as biotechnology but said it included a requirement to review the affected industries within a year.

The latest move threatens to hurt efforts to resurrect top-level engagement that stalled after a suspected spy balloon flew over the US earlier this year. Biden and President Xi Jinping agreed at the G20 in Bali in October to try to stabilise relations and make sure competition did not veer info conflict.

The order comes as Biden prepares to update sweeping export controls introduced in October to make it harder for Chinese groups to source or manufacture cutting-edge semiconductors and chipmaking tools.

The US has been working with its allies in Asia and Europe to forge as much consensus as possible about the need to restrict investment in China. But the effort has been complicated because other countries are worried that the US move goes too far and, in some cases, because of constraints in their legal systems.

US officials have expressed hope that some countries will act once Washington has led the way. But even some close allies appear to be balking. Japanese officials have privately made clear that Tokyo does not intend to revise legislation governing outbound China investments.

However, US officials said the UK and Germany, and also the European Commission, had expressed interest in developing similar outbound investment regimes.

Republicans criticised the order for not tackling more kinds of investment. Nikki Haley, one of the GOP presidential contenders, said it was “not even a half measure”.

“To stop funding China’s military, we have to stop all US investment in China’s critical technology and military companies, period,” she said.

Another US official said private equity and venture capital had been targeted because they could introduce Chinese groups to other technology companies and experts. “What we are trying to get at here is the intangible benefits,” the official said. “Ultimately China doesn’t need our money.”

WSJ : This Hedge Fund's Two Feuding Founders Are Under Pressure to Make Peace

This Hedge Fund's Two Feuding Founders Are Under Pressure to Make Peace

John Overdeck, co-founder of the hedge fund Two Sigma, has feuded for years with the $60 billion firm's other co-founder, David Siegel. The pair are so much at odds that the firm disclosed in a securities filing that they are unable to make basic management decisions.

But now another rift might further complicate things: Overdeck's wife has filed for divorce.

For decades, Overdeck and Siegel have had an operating agreement that provides that they own roughly equal stakes, hold the only two votes and invest equally in Two Sigma's funds.

Early last year, Overdeck's wife, Laura Overdeck, initiated divorce proceedings, citing "irreconcilable differences," according to court documents. The dissolution of the 20-year marriage could force Overdeck to pay a multibillion-dollar settlement. The couple don't have a prenuptial agreement, according to someone close to the matter, so they are currently negotiating a divorce settlement. Forbes currently estimates Overdeck is worth nearly $7 billion.

Overdeck's equity in Two Sigma likely makes up the largest portion of his assets, and he is eager to maintain roughly equal ownership and voting rights with Siegel, according to someone close to Overdeck. At the same time, Siegel places a higher value on the firm than Overdeck does, the person said, a new potential reason for conflict.

The pending divorce has accelerated deliberations between the executives about the firm's future, but no resolution has been reached, said people close to the matter. In recent years, Overdeck has indicated an interest in remaining actively involved at the fund, but Siegel wants to step back into more of an advisory role and spend time traveling and doing other things.

Yet Siegel doesn't want to hand control to Overdeck, these people said. In the past, they have debated succession planning and selling part of the firm to an outside party but haven't been able to reach any conclusions about a course of action, the people said.

"This is a personal matter for John, who is focused on his business and his children," said Jonathan W. Wolfe, a lawyer for Overdeck. "He is not looking to divest from Two Sigma, and has no intention of entering into any divorce settlement that would affect the firm's business or his ownership."

Siegel couldn't be reached for comment. A spokesperson for Two Sigma declined to comment. Theresa Lyons, a lawyer for Laura Overdeck, had no comment.

On March 31, Two Sigma warned clients that the relationship between Overdeck, 53, and Siegel, 61, had deteriorated to the point where they were having difficulty making key decisions. The rift could hurt Two Sigma's operations and returns, the firm has said. The Wall Street Journal reported in June on the unusual regulatory disclosure and the feud.

Pressure is mounting on the co-founders to address their long-running disagreements and map a plan for the firm's future. After the Journal's article was published, the Securities and Exchange Commission began an examination of Two Sigma, according to people familiar with the firm. Such audits are routine among the largest hedge-fund firms and can focus on potential risks for a fund. SEC examiners have asked Two Sigma about the rift and its potential impact on clients, according to the people. An SEC spokesman declined to comment.

Investors in the firm's funds, including the private-equity firm Blackstone -- one of the firm's earliest clients and still one of its largest investors -- have also been asking about the conflict, people familiar with the matter said. Representatives for Two Sigma, in meetings and calls with clients, have said they don't believe the founders' relationship has been the driving factor behind any redemptions, which they characterized as small. They have emphasized that Overdeck and Siegel have worked together for decades and have disagreed before, but also said the firm is making some progress in succession planning.

"While we disagree about certain important topics, we also agree on many of the things that are most critical to our organization," Siegel and Overdeck wrote in a note to investors hours after the Journal's June article was published, adding that they remained committed to the firm and its clients.

Two Sigma took an initial step to try to address one of the contentious issues between the founders by naming temporary replacements for the recently retired chief operating officer, Jonathan Hitchon, who had long mediated between the founders. The founders' inability to agree on a new COO had been one of the triggers for the disclosure, the Journal earlier reported.

The firm in July told clients it had named Jeff Penney and Timothy Reynolds as interim co-COOs. Penney, who was Siegel's college roommate, is a former management consultant who had left Two Sigma several years earlier, while Reynolds is a longtime executive at the firm. A search firm is looking for a permanent COO.

Overdeck and Siegel have long had different priorities and styles, which for a while contributed to Two Sigma's success, people who know them said. Siegel, a computer scientist, liked spending time on big-picture issues while encouraging staffers to pursue ambitious projects, including advances in artificial intelligence. Overdeck, a mathematician who by the age of 2 was counting by 17s, was viewed as more practical, focusing on improving Two Sigma's performance.

For years, they insisted on anonymity for themselves and the firm. That changed starting in 2015 with articles in the Journal and Forbes. The founders decided the higher profile helped Two Sigma attract employees and assets.

They also became more competitive. Siegel scrutinized Two Sigma's website, upset if his biography was shorter than Overdeck's. After first appearing on the Forbes billionaires' list a few years ago, the executives began keeping a close eye on annual rankings, according to people close to the matter, eager to leap over rivals and make sure they were ranked equally.

Several years ago, Overdeck was thrilled when USA Today identified him as New Jersey's wealthiest resident, with a net worth of $6.1 billion, according to a person close to him.

Their worsening relationship became a distraction at the firm. Overdeck and Siegel sometimes blocked pay increases for staffers in each other's departments. Priorities could change week to week, said a person close to the matter, sometimes according to the whims of each founder.

Employees strategized over whether both founders needed to be consulted on an issue, and, if so, how to approach them. Senior employees told the founders that navigating their relationship wasn't a productive use of their time. A term some former employees have for surviving their time at Two Sigma: PTSD, or post-Two Sigma disorder.

Some well-respected senior executives have left the firm in recent years, at least in part because of the rift and the distractions it created, said people familiar with Two Sigma. They include Joseph Cua and Andrew Janian, for Citadel, and Nobel Gulati and Vikram Modi, who have started their own investment funds, said people familiar with the firm. In July, Two Sigma said its general counsel, Matt Siano, was retiring, surprising some because of its timing during an SEC examination.

>>> US Research Calls


Research Calls

  • Upgrades:
    • Ambac (AMBC) upgraded to Buy from Neutral at Compass Point; tgt $18
    • DraftKings (DKNG) upgraded to Neutral from Underweight at JP Morgan; tgt $26
    • Eli Lilly (LLY) upgraded to Buy from Hold at Jefferies; tgt raised to $615
    • Equinor (EQNR) upgraded to Outperform from Sector Perform at RBC Capital Mkts
    • Bioventus (BVS) upgraded to Buy from Hold at Craig Hallum; tgt raised to $6
    • Chart Industries (GTLS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $224
    • DISH Network (DISH) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $10
    • Golub Capital (GBDC) upgraded to Outperform from Mkt Perform at Raymond James; tgt $15.50
    • LivePerson (LPSN) upgraded to Buy from Neutral at ROTH MKM; tgt $6
    • Marqeta (MQ) upgraded to Buy from Hold at Berenberg; tgt raised to $8
    • US Cellular (USM) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $38
    • WM Technology (MAPS) upgraded to Buy from Hold at WestPark Capital; tgt $2.61
  • Downgrades:
    • AerSale (ASLE) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $15
    • Celanese (CE) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $122
    • Datadog (DDOG) downgraded to Hold from Buy at Stifel; tgt lowered to $90
    • Intl Flavors (IFF) downgraded to Neutral from Buy at Goldman; tgt lowered to $78
    • Morphic (MORF) downgraded to Hold from Buy at Stifel; tgt lowered to $61
    • Qualcomm (QCOM) downgraded to Outperform from Buy at Daiwa Securities; tgt $125
    • Stellantis (STLA) downgraded to Neutral from Buy at Citigroup
    • Thoughtworks (TWKS) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $6
    • Western Midstream (WES) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $29
    • ZipRecruiter (ZIP) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $18
    • 8x8 (EGHT) downgraded to Hold from Buy at Craig Hallum; tgt lowered to $4
    • 2U (TWOU) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $4
    • Bentley Systems (BSY) downgraded to Peer Perform from Outperform at Wolfe Research
    • Coupang (CPNG) downgraded to Hold from Buy at Deutsche Bank; tgt $20
    • Doximity (DOCS) downgraded to Neutral from Buy at Guggenheim
    • Enanta Pharmaceuticals (ENTA) downgraded to Underweight from Neutral at JP Morgan; tgt $14
    • Expensify (EXFY) downgraded to Hold from Buy at Loop Capital; tgt lowered to $6
    • Expensify (EXFY) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
    • Lulu's Fashion Lounge (LVLU) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $3
    • PubMatic (PUBM) downgraded to Neutral from Outperform at Macquarie; tgt lowered to $16
    • Shake Shack (SHAK) downgraded to Neutral from Buy at Northcoast
    • Stagwell (STGW) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $8
    • UPS (UPS) downgraded to Hold from Buy at Loop Capital; tgt lowered to $195
    • UPS (UPS) downgraded to Neutral from Buy at UBS; tgt lowered to $185
    • Veritone (VERI) downgraded to Sell from Neutral at ROTH MKM; tgt lowered to $2
    • WeWork (WE) downgraded to Neutral from Buy at BTIG Research
    • WhiteHorse Finance (WHF) downgraded to Neutral from Buy at Ladenburg Thalmann; tgt $13
  • Others:
    • RAPT Therapeutics (RAPT) initiated with a Buy at Stifel; tgt $40
    • Globant (GLOB) resumed with an Outperform at Itau BBA; tgt $230
    • Mirati Therapeutics (MRTX) assumed with an Overweight at Piper Sandler; tgt $45
    • Splunk (SPLK) initiated with an Overweight at CapitalOne; tgt $125

>>> US Gapping down


Gapping down
In reaction to earnings/guidance:

  • DOCS -26.5% (also announces 10% workforce reduction), PUBM -19.2%, TWOU -17.3%, ASLE -16.4%, UPST -15.5%, ANGI -14.7%, SMCI -14.6%, ZIP -14.5%, EXFY -13.9%, NVEI -13.2%, BLFS -13.1%, KRNT -10.7%, HBM -9.1%, LL -9.1%, EGHT -8.6%, CUTR -8%, OLK -7.7%, IAC -7.6%, CEVA -7.6%, AVNS -7.4%, MODG -7.1%, LYFT -6.7%, LZ -5.9%, JAMF -5.3%, SUPN -5%, SLVM -4.9%, PDFS -4.8%, CLDX -4.4%, VTEX -3.8%, BARK -3.5%, EBS -3.5%, LPRO -3.4%, MASI -3.3%, LNW -3.3%, DDD -3.1%, BMBL -2.8%, VST -2.8%, APPS -2.6%, STR -2.6%, EDR -2.5%, AGTI -2.3%, DAR -2.2%, HHC -2.1%, GNW -2.1% (also expands share buyback auth by $350 mln), DIOD -2%, CRCT -2%, DXPE -2%, USPH -2%, VRDN -2%, EC -2%, ZNTL -2%, TALO -1.8%, VZIO -1.8%, SRAD -1.8%, ME -1.7% (also announces 11% workforce reduction), GDRX -1.7%, DIBS -1.6%, WES -1.4%, GEO -1.4%, JXN -1.3%, QDEL -1.2%, WEN -1.1%, FLT -1%

Other news:

  • GRND -12.7% (reschedules earnings release date)
  • GTES -9.2% (prices secondary offering of 15 mln shares of ordinary shares at $11.75 per share)
  • NS -7.3% (prices offering of 13000000 common units for gross proceeds of ~$199.6 mln)
  • RMBL -7.3% (plans to make a $100 mln rights offering to holders of the company's Class A common stock and Class B common stock)
  • TERN -2.3% (provides update on Phase 2a trial of TERN-501)
  • ATRO -2% (initiates $30 mln ATM equity offering program)
  • KKR -1.6% (KKR acquires $373 mln of prime auto loans from SNV)
  • GBCI -1.3% (announced a deal to acquire Washington-based regional bank Community Financial Group)

Analyst comments:

  • MORF -2% (downgraded to Hold from Buy at Stifel)
  • TWKS -1.7% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)

>>> US Gapping up


Gapping up
In reaction to earnings/guidance:

  • LPSN +21.6% (also CEO steps down), MQ +20.4% (also signs extension SQ to continue powering its Cash App card), CELH +16.8%, AZTA +15.7%, AXON +15.3%, TOST +15.2%, PENN +14.1%, BOOM +13.8%, ARRY +13.6%, RPD +11.8%, MRTX +10.6% (also CEO steps down; also files $250 mln common stock offering), VUZI +10.6%, SOUN +10.6%, PETQ +8.6%, AMPL +7.7%, IONS +7.5%, RKLB +7.1% (also signs a block buy deal for five Electron launches with BlackSky), DUOL +6.6%, TWLO +6.6%, AKAM +6.3%, ARHS +6.1%, TH +6.1%, VCYT +6%, ANIP +5.5%, WRBY +5.4%, CPNG +5%, CTOS +5%, CDRE +5%, VVV +5%, LFST +4.8%, FLYW +4.6% (also CFO to step down in 2024), MEG +4.4%, LGND +4.4%, DNLI +4.3%, BW +4%, EVRI +4%, BLNK +3.9%, HALO +3.9%, BIRD +3.9%, FNF +3.9%, TBLA +3.9%, OSCR +3.8% (also names new CFO), PRA +3.6%, CDNA +3.3%, CRL +3.3%, SII +3.3%, TTWO +3%, SKIN +2.9%, ESTA +2.8%, HNST +2.8%, DHT +2.7%, QGEN +2.6%, FNV +2.6%, SSYS +2.5%, LAZR +2.4%, KIND +2.4%, HMC +2.4%, MODN +2.2%, TWNK +2.1%, ACCO +2% (also CEO to retire, names new CEO), GO +2%, ESE +2%, RVMD +2%, DCPH +2%, AVDL +2%, ATMU +2%, SLF +1.9%, RXT +1.8%, BROS +1.8% (also names new CEO), HYLN +1.8%, INSW +1.8%, SHCR +1.6%, VERX +1.5%, CMP +1.3%, ASX +1.3% (July revs), XMTR +1.2%, PODD +1.1%, IPAR +1%

Other news:

  • CTG +27.1% (Cegeka will acquire CTG for $10.50/share in cash)
  • SCPL +15% (LNW to acquire remaining stake in SCPL it does not already own)
  • PENN +14% (enters into online sports betting agreement with ESPN)
  • SKLZ +5% (CEO bought 75000 shares)
  • PGEN +4.3% (FDA has agreed that the ongoing Phase 1/2 single arm study of the first-in-class investigational PRGN-2012 AdenoVerse immunotherapy for the treatment of recurrent respiratory papillomatosis will serve as pivotal for the purpose of filing an accelerated approval request for licensure)
  • ATAI +2.3% (announces results from Phase 1 study of PCN-101)
  • ICVX +2% (provides update from its Phase 1b extension trial of IVX-121)
  • MCRB +1.4% (files $300 mln mixed shelf securities offering)
  • XFOR +1.2% (names new CMO)

Analyst comments:

  • EQNR +3.5% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)

FT : Tui predicts climate change will boost holidays in Belgium

Tui predicts climate change will boost holidays in Belgium
Travel group expects increased demand for vacations in northern Europe and during cooler months after this summer’s wildfires

Tour operator Tui has predicted the warming climate will prompt more people to take holidays in the cooler months and choose northern destinations such as Belgium after the scorching summer heatwave that sparked wildfires in southern Europe.

Chief executive Sebastian Ebel expects a rise in demand for holidays in the spring and autumn as Europe’s largest tour operator focuses on new trips to northern Europe including the Nordic countries and the Netherlands as well as Belgium.

“There will be changes,” Ebel said with Tui already planning to operate trips to Greece as late as mid-November, adding that the autumn months have seen “really strong” bookings.

But Ebel still expects the traditional summer holiday destinations in southern Europe in July and August to remain popular with many holidaymakers.

“Is that a threat to the business around the Mediterranean? No, it gives us more opportunities for growth,” Ebel said as the German group reported strong demand for travel on Wednesday.

Southern Europe baked in July that closed some tourist attractions including the Parthenon in Athens and caused wildfires that disrupted holidays and forced evacuations.

Europe’s weather forecasting agency has warned the region should prepare for longer and more intense periods of high temperatures.

Still, many holiday companies, including UK budget airline easyJet, have reported little impact from the heatwave as demand booms for leisure travel.

Tui forecast a strong summer despite the southern Europe wildfires in late July when the company evacuated 8,000 guests from the Greek island of Rhodes.

The company said 80 per cent of its guests on Rhodes were unaffected, but reported disruption costs of €25mn, adding that the fires had led to a temporary dip in bookings.

“We had a small slip during the wildfires and the heat. This has now normalised again,” said Ebel.

Tui chalked up its first profitable early summer quarter since the Covid-19 pandemic, with demand and prices rising.

It reported earnings before interest and tax of €169.4mn in the three months to the end of June, up from a loss of €27mn in the same period last year. Revenues were €5.3bn, up by a fifth year on year.

Bookings for the summer season were up 6 per cent compared with summer 2022 with prices up 7 per cent.

Ebel said forward bookings were also strong despite the weak economy.

“We are looking very positive into the winter and [the rest of] the summer despite the consumer climate,” he said.

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • CELH +17.1%, SCPL +15%, BOOM +14.5%, MQ +14.3%, AZTA +14.2%, ARRY +14.1%, TOST +13.5%, LPSN +13%, PENN +12.8%, RPD +11.8%, VUZI +11.3%, AXON +10.1%, DUOL +9.5%, PETQ +9.1%, ICVX +8.8%, SOUN +8.5%, EDR +8.1%, RKLB +7.8%, CDNA +7.8%, TWLO +7.8%, AMPL +7.7%, GATO +7.1%, MRTX +6.1%, VCYT +6%, AKAM +5.7%, DNLI +5.3%, GO +5.3%, CTOS +5%, CDRE +5%, VZIO +4.9%, FLYW +4.6%, SKLZ +4.5%, BLNK +4.5%, MEG +4.4%, LGND +4.4%, BW +4%, HALO +3.9%, FNF +3.9%, OSCR +3.8%, LFST +3.7%, PRA +3.6%, LAZR +3.4%, CPNG +3.4%, ATAI +2.8%, ESTA +2.8%, CLDX +2.7%, TTWO +2.7%, EVRI +2.7%, FNV +2.6%, WMC +2.5%, KIND +2.4%, TBLA +2.4%, QGEN +2.3%, TWNK +2.1%, ACCO +2%, ESE +2%, RVMD +2%, SLF +1.9%, BBAI +1.7%, VVX +1.7%, HMC +1.7%, MCRB +1.4%, ASX +1.4%, RIVN +1.3%, CMP +1.3%, XFOR +1.2%, PODD +1.1%, IPAR +1%
  • Gapping down:
    • DOCS -30.1%, PUBM -22.4%, UPST -18.6%, EXFY -18.6%, ANGI -18.1%, ASLE -17.9%, ZIP -15.2%, TWOU -13.6%, BLFS -13%, GRND -12.7%, SMCI -11.9%, IAC -9.1%, HBM -9.1%, MODG -8.6%, GTES -8.1%, CUTR -8%, LYFT -7.4%, DXPE -7.2%, EGHT -7.1%, NS -6.4%, LL -6.2%, ATRO -6.1%, AGTI -6.1%, LZ -5.9%, CRCT -5.8%, JAMF -5.3%, SUPN -5%, PDFS -4.8%, MTTR -4.5%, VTEX -3.8%, TALO -3.7%, LPRO -3.4%, LNW -3.3%, EBS -3.1%, MITT -2.9%, MASI -2.9%, BARK -2.8%, DIOD -2.7%, STR -2.6%, GEO -2.5%, EC -2.5%, ME -2.3%, DAR -2.2%, HHC -2.1%, GNW -2.1%, SNV -2%, USPH -2%, VRDN -2%, IRBT -1.7%, KKR -1.6%, BMBL -1.6%, APPS -1.5%, GBCI -1.3%, JXN -1.3%, WES -1.2%, QDEL -1.2%, BFLY -1%, GDRX -1%, AZUL -0.9%

>>> Sanlorenzo confirms order book of €1.4 billion for first half of 2023

Sanlorenzo confirms order book of €1.4 billion for first half of 2023

Italy-based yacht builder Sanlorenzo has confirmed an order book of €1.4 billion during its half-year financial report for 2023. This is up by €18.3 million compared to the results from the same period last year.
Sanlorenzo superyacht fleet

Sanlorenzo reported a net revenue of €388.4 million for the sale of new yachts in 2023, an increase of 12.6 percent from the €344.9 million that the company reported for the same period last year, supporting Sanlorenzo’s business outlook and market strategy for the year.

In May 2023, Sanlorenzo reported an increase in profitability across all levels of its financial report, and the 2023 guidance has been revised upwards to reflect the solid backlog of sold deliveries up to 2027.

“I am particularly proud to present excellent results in a quite challenging market scenario, achieved thanks to the commitment and passion of all Sanlorenzo teams, to which I would like to address a special thanks,” commented Massimo Perotti, Chairman and Chief Executive Officer of Sanlorenzo.
Massimo Perotti, CEO of SanlorenzoPhoto: Sanorenzo
“We revised upward the guidance on expected results for the current year, relying on a first half of absolute satisfaction and a very solid order portfolio, exceeding €1.4 billion as of 30 June 2023, but above all of high quality, as it is for 90 percent backed by contracts with final clients.”

Sanlorenzo reported that EBITDA was at €67.7 million, up by 20.3 percent compared to the €56.3 million recorded in the first half of 2022. As well as this, EBIT was up by 20 percent from the same period in 2022 at €53.1 million.

Net working capital was negative at €75.6 million as of 30 June 2023, compared to a negative figure of €37 million as of 31 December 2022 and a negative figure of €70 million as of 30 June 2022.
SanLorenzo fleet modelsPhoto: Sanlorenzo
The organic net investments for the first half of 2023 amounted to €13.1 million, of which over 80 percent came from the increase of production capacity and the development of new models and ranges.

Sanlorenzo’s net cash position as of June 2023 was equal to €140.5 million, notwithstanding the payment of dividends of €22.6 million, compared to €100.3 million as of 31 December 2022 and €91.1 million as of 30 June 2022. This figure is linked to a free cash flow of €65.8 million in the first half of 2023, and was mainly driven by the steady increase in the EBITDA margin and the delivery of planned contractual advances.

As of June 2023, Sanlorenzo reported an order intake of €351.5 million, of which €170.1 million came from the first quarter and €181.4 million in the second quarter. The gross backlog for the current year is equal to €746 million, an excellent coverage of the expected revenues in 2023.
Sanlorenzo SX100 yacht exterior design
The future of Sanlorenzo’s revenue remains high, with orders totalling €675 million and harbouring the overall extension of delivery dates, with sold deliveries up to 2026 for the Yacht Division and up to 2027 for the Superyacht Division.

“With this long-term vision being clear in our minds, we keep conjugating the development of new, highly innovative product ranges, which create new market segments, with the highest expression of Made in Italy design and craftsmanship, fundamental distinctive elements of our brand identity,” concluded Massimo Perotti.