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Original-Research: euromicron AG - von GBC AG

Einstufung von GBC AG zu euromicron AG

Unternehmen: euromicron AG
ISIN: DE000A1K0300

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: EUR 10.50
Letzte Ratingänderung: -
Analyst: Felix Gode, CFA, Marcel Goldmann

* In FY 2016, euromicron AG achieved sales of EUR325.31 million, 5.7% less
than in the previous year. In particular, this decrease was mainly caused
by the 'Critical Infrastructures' segment which discontinued the business
unit fibreglas infrastructure and could not materialise some sales due to
not granted export licenses. In the 'Smart Buildings' segment the sales
decrease only was marginal, due to project postponements for component
deliveries. However, it has to be mentioned that a large-scale order was
contained in the previous financial years sales, which did not repeat in
2016. The 'Distribution' segment, on the other hand, was able to record an
increase in sales. Adjusted for the product lines that were discontinued in
the previous year (EUR10.6 million), the decline in organic sales was only
about 2.7%.
 
* Despite a decline in sales the reported EBITDA was reported at EUR7.39
million, slightly above the previous year's figure (EUR6.92 million), even
though the core segment, 'Smart Buildings', had a detrimental impact on the
operating profit due to temporary effects. Moreover, the operating profit
was reduced by re-structuring costs of EUR5.8 million. Adjusted for special
effects from restructuring measures, operating EBITDA was EUR13.15 million,
compared to EUR13.76 million in the previous year.
 
* It should be emphasized that the restructuring measures announced by the
management were implemented and have had an increasing impact on key
indicators. Breaking with its past, the company is now more focused on
profitable orders and puts more emphasis on earnings performance than
revenue development. The new orientation of the Group, which was initiated
in 2015, is now almost complete. We therefore expect a much lower negative
impact on earnings in the future. In general, we believe that the company
is on the right track, with successes becoming more obvious.
 
* For FY 2017, we expect a significant increase in sales and earnings. We
expect sales of about EUR335.00 million, mainly from the 'Critical
Infrastructures' segment, and EBITDA of EUR12.61 million. These again contain
extraordinary expenses of EUR2.5 million in connection with the restructuring
of the Group. Adjusted operating EBITDA (adjusted for restructuring
effects) is thus expected to be at EUR15.1 million; this corresponds to an
operating EBITDA margin of 4.5%. For 2018, we do not expect additional
extraordinary expenses, which should result in EBITDA increasing to EUR19.6
million. Accordingly, we expect to achieve an EBITDA margin of 5.5%.
 
* Based on the forecasts for FY 2017 and 2018, we have kept our target
price for euromicron AG at the same level. The fair market value based on
our DCF model is EUR10.50 (previously: EUR10.50). Based on the current share
price, this results in an unchanged BUY rating. Over the long-term, we are
convinced that euromicron will be able to achieve much higher EBITDA
margins than before. Furthermore, we are also convinced that the mostly
completed Group restructuring will have a positive impact on future sales
and earnings. Against this backdrop, it seems to us that the euromicron AG
share is favourably valued.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/15119.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen
Katalog möglicher Interessenkonflikte finden Sie unter: 
http://www.gbc-ag.de/de/Offenlegung.htm
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