27.03.2019 SBF AG DE000A2AAE22
Original-Research: SBF AG (von GBC AG): Buy
Original-Research: SBF AG - von GBC AG
Einstufung von GBC AG zu SBF AG
Unternehmen: SBF AG
Anlass der Studie: Research report (initial coverage)
Technology and market leader in ceiling systems for rolling stock in the rail industry growth sector; Strong growth momentum by widening the range of products and services offered, entering new markets and increasing vertical integration; Significant increase in profitability using economies of scale as part of the growth path pursued; Target price: EUR 3.62; Rating: Buy
Through its core holding SBF Spezialleuchten GmbH, SBF AG is a specialist in ceiling systems for rolling stock, particularly in the European railway technology sector. The rail industry is generally considered a sustainable growth area, and a study conducted by SCI Verkehr found that the current market volume is EUR183 billion for the global railway technology market. Researchers expect an average future market growth of 2.8% (CAGR) for this segment by 2022.
SBF AG generated revenue in the amount of EUR19.53 million in financial year 2017, which was below the previous year's result of EUR21.46 million. This drop in revenue was the result of a limited amount of new contracts being awarded and a subsequent decline in order volume. However, there was a significant improvement in terms of earnings compared to the previous year. For example, net earnings took a positive turn with EUR1.36 million profit (previous year: EUR -0.04 million).
SBF AG expects earnings for its core holding SBF Spezialleuchten GmbH to be at the same level in financial year 2018 as the previous year despite a continued decline in revenue caused by a period of consolidation. On this basis, we expect revenues in the amount of EUR14.5 million and a net profit of EUR1.37 million at Group level (SBF AG) for financial year 2018.
Following the consolidation phase in the previous year, the company established a good starting position for itself to return to the growth path (strong market positioning, technology leader within the ceiling systems sector, close client relationships, etc.). SBF AG has now embarked on a profitable growth path and aims to achieve further expansion of its business model as a systems provider for the railway technology industry. Expanding the range of products and services offered and increasing vertical integration and internationalisation are key elements of the growth strategy in pursuit of this objective.
As part of the intended growth path, it should be possible for the company to profit from the increased investments in particular, which are expected to be made in the global railway technology sector. In addition, the planned regional expansion into new railway technology markets should have a positive impact on future business development, and the planned expansion of vertical integration and potential orders resulting from it should also prompt an increase in business volume.
On this basis, we expect a profitable growth phase to begin in financial year 2019, which according to our calculations should amount to EUR17.7 million, EUR19.5 million and EUR22.4 million in revenue for financial years 2019, 2020 and 2021 respectively. With this expected strong revenue momentum and developing economies of scale, the net earnings should also rise significantly to EUR1.43 million, EUR1.6 million and EUR2.13 million respectively.
Given the strong market positioning, the growth path the Group is on and the increased investments that are expected to be made in the railway technology sector globally, we have evaluated SBF AG using our DCF model, leading us to calculate a fair value of EUR3.62 per share. On the basis of the current share price level, we are expecting high price potential and have awarded the shares a 'Buy' rating.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/17725.pdf
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Elektrotechnik , A2AAE2 , CY1K , XETR:CY1K