German deal points to value in Kingspan's work with data centres
Reports over the weekend that artificial intelligence (AI) group
OpenAI's
latest
ChatGPT
has been caught ignoring human instructions to shut down may be the stuff of apocalyptic nightmares. Yet the AI genie is well out of the bottle at this stage.
McKinsey
, the management consultancy firm, estimated in a recent report that $6.7 trillion (€5.9 trillion) will need to be spent on data centres globally by 2030, driven by demand for hubs equipped to handle AI processing loads. AI demand alone will require $5.2 billion of data centres investment, it said.
One Dublin-listed company that should be a major play for investors in this trend is
Kingspan
, analysts say.
The Cavan-based group's data solutions division, which designs and makes raised access flooring, structural ceilings, and airflow solutions for data centres, saw its trading profit jump more than 50 per cent last year to almost €78 million to make up 8.6 per cent of total profits.
READ MORE
Goodbody Stockbrokers analyst Shane Carberry estimates the unit's profits could grow by more than 30 per cent in 2025.
He said in a note to clients in recent days that the division is on track to deliver €200 million in trading profits by 2027, a fourfold increase on 2023.
Carberry said a deal struck earlier this month – Samsung Electronics's agreement to buy German heating, ventilation and air-conditioning provider to data centres, FläktGroup – points to some serious value in Kingspan's data solutions business. He reckons the unit could be worth €4.25 billion, based off the value of the FläktGroup and its estimated earnings.
That equates to about a third of Kingspan's current market value. The €4.25 billion valuation implied by the German deal suggests the market is applying a 'gross undervaluation' to the wider group, based off consensus earnings estimates for 2027.
'The data centre 'boom' is no secret and it is clear that companies like Samsung Electronics are trying to take advantage but having to pay hefty multiples to do so,' he said. 'We believe that few are better placed than Kingspan to capitalise on this mega trend.'
Still, stock market investors remain cautious for now – with the stock down 17 per cent over the past 12 months, compared with a 13 per cent advance by the Iseq All-Share index – amid concerns about the wider global economy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
an hour ago
- Irish Times
Unions to meet with Wellman examiner to discuss possible sale
Unions representing about 200 of the 217 staff at the Wellman recycling plant in Mullagh, Co Cavan will meet with examiner Kieran Wallace of Interpath Advisory on Monday as part of an effort to find a buyer for the facility and prevent job losses. The unions say the plant has considerable untapped potential and safeguarding it and its workforce should be a particular priority for government given its environment significance. Its parent company, Indorama Ventures, says it has lost 'double-digit millions across 2023 and 2024' and needs to be financially restructured. Mr Wallace, of Interpath Advisory was appointed interim examiner on Tuesday. Having opened in 1973 under American ownership, the facility in Mullagh was taken over by Thai based Indorama Ventures in 2011. At one point it employed more than 500 people and the unions claim it has been run down by its current owners. READ MORE The factory recycles plastic bottles and other waste and is capable of producing polyester fibres and other products including car components. Union representatives briefed local TDs on what they believe is the potential of the plant on Thursday evening and hope to persuade the examiner to allow them speak with prospective buyers. A meeting with management is also scheduled for next Wednesday. 'I think the hope would be that Government would take a particular interest is saving the plant given the context of Ireland's recycling policies,' said Michael O'Brien of Unite. 'The examinership did not come as a huge surprise to the people working at Wellman but they are not fatalistic about the situation at all and they want to be involved in the process to find a buyer because they believe they can help highlight its potential.' Indorama, which operates a large network of facilities internationally has cited high energy costs and competition from China and other regions. It has said its board believes the plant 'does have a potential future'. It says, however, that some jobs may be lost during the examinership process and there is concern among the three unions with members there, Siptu and Connect as well as Unite, that the terms offered may fall short of previous voluntary packages. Siptu's Alan Clark said he is optimistic a buyer can be found to take the operation over as a going concern. 'It's a very versatile facility and we certainly believe there is the potential for it to continue.' Despite the number of jobs at the site having reduced over time, Wellman remains a major employer in Cavan and important to the local economy.
Irish Times
an hour ago
- Irish Times
European shares finish volatile week on high
European shares rose for a second straight week, buoyed by robust US employment figures and diminishing concerns over trade friction that had previously rattled investor confidence. The week has been a volatile one for global markets as investors grappled with ever-changing global trade dynamics. US president Donald Trump doubled tariffs on steel and aluminium imports, though the UK received an exemption. But markets are also monitoring whether the public spat between Mr Trump and Tesla chief executive Elon Musk could spill over into broader markets. Dublin READ MORE The Irish Overall Index of shares ended the week slightly higher, adding 0.14 per cent to finish at 11,622. That followed a fresh all-time high reached on Thursday, following the news that the European Central Bank was 'getting to the end' of a rates cycle which has seen eight consecutive cuts. But shares were mixed across the board. While AIB gained over its opening price on Friday, adding 0.2 per cent, Bank of Ireland gave up some of its gains, falling half a per cent. Insurer FBD was flat on the day. It was a similar story for insulation specialist Kingspan, which shed 1 per cent, closing the week at €75.55. The company's shares gave up some of the gains made on Thursday after it announced it would increase its planned investment in the US roofing business to $1 billion over the next five years. Food group Glanbia was 1.1 per cent higher at the close of the session, finishing at €12.64, while Kerry Group was almost 1 per cent lower. In leisure and travel stocks, hotel group Dalata was 1 per cent lower, while Ryanair added 1.76 per cent to end the week at €24.28. London The blue-chip FTSE 100 gained 0.3 per cent, while the more domestically-oriented FTSE 250 ended 0.4 per cent higher. Both indexes clocked firm weekly gains. On the day, heavyweight banks were among the top gainers, with Standard Chartered up 2.9 per cent, HSBC up 1 per cent and Barclays climbing 1.9 per cent. Precious metal miners, the best performing FTSE 350 sector this week, lagged on Friday, clocking a 1.8 per cent decline. Aerospace and defence shares – which jumped earlier this week after Prime Minister Keir Starmer pledged the largest sustained increase in British defence spending since the end of the Cold War – gave some of those gains back, to fall 0.8 per cent. Europe The pan-European Stoxx 600 rose 0.3 per cent on Friday, and logged a 0.6 per cent gain for the week. Market sentiment drew support from the United States' better-than-expected jobs report and signs of easing in the US-China trade relationship. Still, the market was also reminded this week of protectionist fervour. The automotive sector, particularly exposed to tariffs on steel and aluminium imports, bore the brunt, shedding 1.8 per cent over the week. German Chancellor Friedrich Merz indicated he would pursue a deal for duty-free US car imports into Europe in exchange for equivalent tariff waivers on European exports to the United States. Other bourses such as Germany's DAX and France's also recorded a second straight week of gains, while and Spain's IBEX logged its eight consecutive week of advances – its longest in nearly four months. On Friday, the financial sector emerged as the standout performer, propelled by UBS, which rose 3.8 per cent after Swiss authorities proposed more stringent rules that could require an additional $26 billion in core capital reserves for the banking giant. New York Wall Street rebounded on Friday and US Treasury yields jumped as a generally upbeat employment report and a bounce-back in Tesla shares helped put the indexes on track for weekly advances. All three major US stock indexes surged from the starting gate with robust gains, while bitcoin jumped and crude prices touched their highest level since late April. Tesla stock was last up 5.9 per cent. The Dow Jones Industrial Average rose 485.78 points, or 1.15 per cent, to 42,805.52, the S&P 500 rose 66.69 points, or 1.12 per cent, to 6,005.88 and the Nasdaq Composite rose 252.22 points, or 1.31 per cent, to 19,550.67. – Additional reporting: Reuters
Irish Times
3 hours ago
- Irish Times
Setting up your bank account before you arrive in Ireland
On The Money doesn't tend to take too much notice of press releases from banks but something crossed my desk this week that made me stop. It wasn't revolutionary – this is from an Irish bank after all – it was just announcing a simple practical solution to a problem that hasproved intractable. Every year tens of thousands of people arrive in Ireland to study, start a job or return home after an extended period abroad. Getting set up in a new country or back in your homeland throws up all sorts of basic practical issues; housing, setting up utilities, getting paid by your new employer or finding a home for the cash to tide you over for your period of study, almost all of which require you to have details of an account with a local bank. READ MORE Until now, unless you were physically resident in Ireland, you could not set up a current account to manage these basic but necessary functions, never mind about doing it online. Now Bank of Ireland says it is allowing people open accounts in Ireland up to 45 days before they arrive in the State. This allows them to have their financial affairs in order from the day they arrive in the State. I had to check that this was, in fact, new. It seems odd that in 2025 in a world where online banks are eating the lunch of the old traditional players, no one would have thought of this before now. The 'Coming to Ireland' service will even allocate a personal case manager who will get in touch within 48-hours of the application being submitted to guide people through the process. That will be subject of envy from every other bank customer who cannot be sure of ever dealing with the same person twice on their banking affairs. Bank of Ireland's head of retail, Susan Russell, notes that coming to Ireland for the first time or returning home after years abroad 'can be overwhelming'. And it's an experience that affects more people than you might think. Bank of Ireland cites Central Statistics Office figures showing that more than 149,000 people moved to Ireland in the 12 months up to the end of April 2024. Ms Russell says the new service is 'designed to remove barriers', something that will certainly be very welcome. So how does it work? You simply need to follows the steps in an online account application form which you can find here . You'll need photo ID – a passport, driving licence or EU national identity card. You'll also need two proofs of address but, as these will need to be proof of an Irish address, the bank gives you 60 days from your date of arrival to present those. Failure to do so will see the account blocked. The process will also require a selfie of you that is taken as you go through the process. Assuming it works as promised, it will give Bank of Ireland an edge on its rivals. AIB does say that people coming to the State can open an account before they arrive through its website. However, applicants still need to visit a branch on arrival to verify their identity and have the account activated. Once they have all the paperwork, AIB says a customer can expect their new account to be operational within 24 hours. People resident in Ireland over the age of 16 can open an account virtually through the AIB Mobile app, the bank tells me, which is welcome but no good if you're only arriving in the State. AIB is also proud of its translation services which offers service to customers in any one of 150 languages – which sounds helpful for those who do not speak English as a first language – but it still won't allow you to get up and running without trekking into a branch in Ireland. For its part, PTSB requires anyone arriving in Ireland and looking to open an account to present themselves at a branch with all the necessary documentation. People who are already resident here can open an account through PTSB's mobile app. They can even open a joint account if they were not already PTSB customers. However, somewhat ironically, if you are a PTSB customer and wish to open a joint account, you'll have to visit a branch Of course, while all this increased flexibility is welcome, it is worth noting that the banks are only really beginning to make themselves more accommodating because of the threat from the fintechs – like Revolut , N26 and Bunq – who pioneered the concept of online account opening, including scanning of the necessary documents. In a world where banks are making it ever more difficult to actually talk to someone in a branch, people, especially younger potential customers more comfortable with living more of their lives online, increasingly opt for the flexibility and user-friendliness the fintechs offers – despite some of the customer service glitches that have subsequently emerged. Ironically, in a world where traditional banks are looking to reduce branches and branch staff numbers, you would have thought blatant self-interest, if nothing else, would have made them anxious to be at the forefront of flexible, online banking As anyone who regularly battles their way through the stodgy online offerings available from the traditional banks will know, they're far short of offering that sort of cutting edge banking service. Still, at least making it easier for people to get their personal banking arrangements up and running before they land is a small step in the right direction. You can contact us at OnTheMoney@ with personal finance questions you would like to see us address. If you missed last week's newsletter, you can read it here .
