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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 (update)
Empfehlung: Buy
Kursziel: 11.45 EUR
Letzte Ratingänderung: 
Analyst: Marcel Goldmann, Cosmin Filker

Solid turnover in ongoing core business in HY1 2018; Measures introduced to
increase profitability; Organic growth expected in 2018; Target price: EUR
11.45 (previously: EUR 11.45); Rating: BUY
 
In H1 2018, euromicron AG generated revenue of EUR 150.65 million, down
slightly on the previous year's level of EUR 153.64 million. Adjusted for
revenue effects from business operations discontinued during the interim
period (effect: EUR 4.5 million), however, the first half of 2018 saw
revenue growth of around 1.0%, or EUR 1.5 million, in ongoing core
business. The 'Critical Infrastructures' and 'Distribution' segments
proved, once again, to be reliable revenue generators.
 
The solid sales performance was also reflected in the operating earnings
figures. As a result, the operating EBITDA improved slightly in the first
half of 2018 from EUR 0.65 million to EUR 0.76 million. Moreover, the
operating profit was significantly affected by exceptional costs of around
EUR 2.5 million (PY: EUR 1.5 million). Accordingly, the net result after
the first six months of FY 2018 was -EUR 7.13 million (PY: -EUR 5.48
million).
 
Incoming orders from ongoing business operations of the euromicron Group
amounted to EUR 159.8 million in the first half of 2018, down 4.2% on the
previous year's level of EUR 166.8 million. In contrast, the order backlog
in ongoing core business increased by 3.5% year-on-year to EUR 139.1
million (PY: EUR 134.4 million).
 
The operating cash flow of the technology company, adjusted for factoring
effects, amounted to -EUR 3.2 million in the first half of 2018 (PY: -EUR
11.1 million), up significantly on the previous year by EUR 7.9 million.
This was mainly caused by positive effects from the reduction in working
capital (effect: EUR 5.7 million).
 
It is important to note that the strategic realignment of the company to
the 'IoT' or 'Industry 4.0' growth markets is increasingly bearing fruit.
The measures introduced to reduce working capital are also increasingly
visible in the balance sheet.
 
For FY 2018, we expect an improvement in turnover and earnings compared
with the previous year. While we are predicting sales of EUR 353.77
million, we expect earnings to show a reported EBITDA of EUR 13.92 million.
This again includes exceptional costs, in particular in connection with
legal and consulting fees, as well as group financing costs of EUR 4.00
million for euromicron AG. On an adjusted basis, operating EBITDA (adjusted
for exceptional costs) of EUR 17.92 million should therefore be recorded,
equating to an operating EBITDA margin of 5.1%. Exceptional costs will be
lower for the following year 2019, and we expect operating EBITDA of EUR
17.81 million with an operating EBITDA margin of 4.9%. Taking into account
the expected exceptional costs, we expect to record a reported EBITDA of
EUR 16.81 million.
 
In light of the solid first half of the year and management's guidance for
the current financial year, we have also maintained our forecasts for FY
2018 and FY 2019. Accordingly, we have also left our stock price target for
euromicron AG unchanged. The fair market value based on our DCF model is
still EUR 11.45. Based on the current share price, this results in an
unchanged BUY rating. Based on our improved positioning in the 'IoT' and
'Industry 4.0' growth markets and the further planned optimisation of the
euromicron AG business model, we firmly believe that significantly higher
profitability levels can be achieved in the long term.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/16897.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben
analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,7,11);
Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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-------------------übermittelt durch die EQS Group AG.-------------------


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