Silvia Quandt&Cie. AG, Merchant&Investment Banking / Research Update
12.05.2010 11:00
Veröffentlichung einer Corporate News,übermittelt
durch die DGAP – ein Unternehmen der EquityStory AG.
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
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Rating: Buy
Target price: EUR19.0
Close 12/05/10: EUR16.3
RIC: WASG.DE·First-quarter revenue rose by approx. 59% against Q1 last year while
EBITDA increased by 33% y/y, all beating consensus estimates. Management
noted that thanks to the performance of the largest division,
Chemical-Pharmaceutical Raw Materials (approx. 95% of group sales), volume
growth added almost two third to the revenue growth, the remained made up
by higher selling prices due to the rise in crude oil (the major feedstock
for H&R“s refineries).·All refineries were operating at full capacity throughout Q1, hence
divisional EBITDA of Chemical-Pharmaceuticals was strongly lifted to a
total (domestic and international businesses) of EUR24m.·The company has commenced construction work of a propane deasphaltating
plant which shall boost value adding at the Hamburg refinery, by slashing
the content of very low-margin asphalt. Costs are planned to run at a total
of approx. EUR55m. The plant is meant to commence operation in Q4 2011 and
subsequently should contribute EUR12-14m p.a. to group EBITDA.·The management reiterates their 2010 outlook, ie anticipating higher
profits this year. Clearly, with refineries running at full steam, selling
prices should further rise as demand is set to stay strong in the
foreseeable future. The company also confirmed that the latest depreciation
in Euro versus $ should not weigh on profitability (as feedstock, ie crude
oil, is purchased in $) arguing that H&R is still in a
position to pass on the higher costs (after conversion into Euro). We
reiterate our bull case for H&R.·Relying on EVA modeling we continue to foresee further share price
enhancement in the foreseeable future, particularly as we anticipate the
company to lastingly sustain a higher level in profitability and
capital returns, medium- to longer-term (due to the value upgrade of
refinery output, ie much lower content of asphalt).
Harald Gruber
+49 (0)69 95 92 90 93 0
www.silviaquandt.de
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