ORIGINAL RESEARCH

10:21 | 11.09.2017
euromicron AG

Original-Research: euromicron AG – von GBC AG

Einstufung von GBC AG zu euromicron AG

Unternehmen: euromicron AG
ISIN: DE000A1K0300

Anlass der Studie: Research Update
Empfehlung: Buy
Kursziel: 10.50 EUR
Letzte Ratingänderung: –
Analyst: Marcel Goldmann, Cosmin Filker

Improvement in sales and profit – Positive effects of the reorganisation
are becoming increasingly visible – Considerable organic growth expected in
2017 – Target price of 10.50 EUR and rating BUY maintained

In H1 2017, euromicron AG generated sales of EUR 153.64 million, thus
around 10.0% more than in the previous year. All business fields
contributed to this increase. The highest absolute sales growth was
generated in the ‘Smart Buildings’ segment. This segment was able to
increase its sales by EUR 8.12 million to EUR 88.62 million (+10.2%) year-
on-year. The main cause of this was the improved sales performance of
euromicron Deutschland GmbH and ELABO GmbH.

The positive sales performance was also reflected in the earnings figures.
Consequently, EBITDA was reported at -0.88 million EUR, compared to -3.46
million EUR in the previous year. The ‘Smart Buildings’ segment was mainly
responsible for this significant profit improvement. Moreover, the
operating profit was reduced by restructuring costs of EUR 1.53 million
(PY: EUR 1.77 million). Adjusted for special effects from restructuring
measures, operating EBITDA was EUR 0.65 million, compared to -1.69
million EUR in the previous year.

Of special note here is that the measures announced by management to
increase profitability have been implemented and are increasingly affecting
earnings. The new orientation of the Group, which was initiated in 2015,
was completed for the most part in 2016. Therefore, we are expecting
significantly lower pressure on earnings from reorganisation measures for
FY 2017.

For FY 2017, we expect an improvement in sales and earnings. We expect
sales of EUR 335.00 million, mainly from the ‘Critical Infrastructures’
segment, and EBITDA of EUR 12.61 million. These again contain extraordinary
expenses of EUR 2.5 million in connection with the restructuring of the
Group. Adjusted operating EBITDA (adjusted for restructuring effects) is
thus expected to be at EUR 15.1 million; this corresponds to an operating
EBITDA margin of 4.5%. For the following year 2018, we do not expect any
further extraordinary expenses, which should result in EBITDA increasing to
EUR 19.6 million. We expect an EBITDA margin of 5.5% to be achieved as a
result of this.

Based on the confirmed 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 EUR 10.50 (previously: EUR 10.50). Based on the
current share price, this results in an unchanged BUY rating. On the basis
of the previous reorganisation successes, the existing potential for
increasing efficiency and potential synergies, as well as the further
expansion of business in the direction of the ‘IoT’ growth market,
significantly higher margins than have been attained thus far should be
achievable over the long term. Moreover, the company has already shown in
the past that it is capable of doing so. In view of this, 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/15645.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,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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