Original-Research: Euromicron AG (von GBC AG): BUY

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 15.50

Kursziel auf Sicht von: FY2016

Letzte Ratingänderung: 18/08/2015

Analyst: Felix Gode, CFA

* In the financial year 2014 euromicron AG showed significant growth of

6.3% to EUR346.34 million. The South segment, and thus the production

companies, proved to be particularly dynamic showing an increase of 10.0%.

The takeovers of ATECS AG and SIM GmbH had an influence on this and made an

inorganic contribution.

* In contrast, in the HY1 2015 sales declined by 1.3 %, which was mainly

due to the refraining of low margin revenue, in favor for profitability, as

part of the strategic reorientation. The lower sales volume however

temporarily put pressure on the earnings side. Also it must be considered

that in the HY1 2015 one-off restructuring costs of EUR1.3 million were

charged. Adjusted by the one-off effects the EBITDA in the HY1 2015 was

EUR3.92 million, with a corresponding EBITDA-margin of 2.5 %.

* Following on the change on the executive board, euromicron AG streamlined

its strategy. This involved an increased focus on digitisation and thus on

strengthening and expanding the product and solutions business in the

medium term. This is expected to increase successively the level of margins

as a result of a greater value creation depth and the system critical

position in the projects.

* For the financial year 2015 we forecast a flat development of sales, with

the expectation that the lower end of the forecast range issued by the

executive board of EUR340-360 million will be achieved at EUR341.59 million. We

expect heterogeneous development of both the North and South segments, with

a slight increase in the North segment and a middle single digit decline in

the South segment. For the financial year 2016 we assume that growth will

accelerate by 2.9% to EUR351.48 million, whereas the planned divesture of

non-profitable subsidiaries is already considered.

* Because the earnings for the financial year 2015 will probably be charged

with another EUR3.50 million as a result of reorganisation measures, we are

not yet expecting an improvement in profitability in the operating

activities. So, with adjustments for one-off expenses, the EBITDA is

expected to be just below the 2014 level at EUR20.81 million (unadjusted:

EUR17.31 million). We then expect a significant improvement in the EBITDA for

2016 at EUR24.50 million and an EBITDA margin of 7.0%.

* With a market capitalisation of EUR61.9 million, the euromicron AG shares

are currently trading with a discount of around 40% of the unadjusted

equity. Regarding the strategic streamlining and the changes to the

organisational structure that are already under way, the earnings situation

in the next few years is expected to stabilise and improve further. At the

current share price level we expect a price/earnings ratio of about 8.5 for

the financial year 2016. Against this background, we do not consider a

valuation below the book value as justified. As a result of our DCF model

we have recorded a fair value for each share of EUR15.50 and thus issue the

rating BUY.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13157.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 §34b Abs. 1 WpHG und FinAnV Beim oben 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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