GBC AG: Landi Renzo S.p.A. | Rating: Buy
Original-Research: Landi Renzo S.p.A. - von GBC AG
Einstufung von GBC AG zu Landi Renzo S.p.A.
Unternehmen: Landi Renzo S.p.A.
ISIN: IT0004210289
Anlass der Studie: Research Note
Empfehlung: Buy
Kursziel: 0.98 EUR
Letzte Ratingänderung:
Analyst: Marcel Goldmann, Cosmin Filker
HY1 2022: Continuation of dynamic revenue growth despite more challenging
market environment; significant earnings improvements; GBC estimates and
target price maintained after confirmation of corporate guidance
Business development in HY1 2022
Landi Renzo S.p.A. announced its half-year figures for the current business
year in mid-September. According to these figures, the technology company
was able to continue its dynamic growth course in the first six months
despite difficult general conditions (the Ukraine conflict, after-effects
of the COVID-19 pandemic, etc.), which had a negative impact on turnover
and results. Compared to the same period of the previous year, Group
revenues increased significantly by 50.0% to € 144.45 million (first half
of 2021: € 95.96 million).
This was due to strong (organic) growth effects from an increased business
volume in both business fields - Green Transportation and Clean Tech
Solutions. In addition, inorganic growth effects resulting from the
acquisitions (Metatron Group and Idro Meccanica) also contributed
significantly to the positive turnover trend.
The Group's sales revenues were primarily generated by the core business
field of Green Transportation. In this segment, revenue increased
significantly by 22.0% to € 93.85 million (first half of 2021: € 76.94
million), mainly due to business growth in the aftermarket sector
(especially in Europe and Turkey) and the M&HD sector. The Metatron Group,
which was acquired in the summer of 2021, contributed € 6.68 million to the
segment's revenue increase.
The Clean Tech Solutions business field (SAFE & CEC, consolidation of the
investment from May 2021) was also able to increase its segment revenues
dynamically by 160.0% to € 50.60 million (first half of 2021: € 19.02
million), of which € 2.72 million is attributable to Idro Meccanica S.r.l.,
which was acquired at the beginning of the year. With its compressor
systems, the business unit benefited in particular from increased demand
for natural gas and biogas infrastructures (CNG business growth: +14.0%;
RNG growth: +127.0%). In addition, the company also observed increased
demand for hydrogen compressor solutions and accordingly also achieved an
increased business volume in this area.
On a pro forma basis, segment revenues increased by 18.8% to € 50.60
million compared to the same period of the previous year (pro forma
revenues including SAFE & CEC revenues from January to June 2021: HY1 2021:
€ 42.60 million). With regard to the order situation, the Landi Renzo Group
announced that the order backlog at the end of the half-year was
significantly above the previous year's level. This means that this
business field has a good starting point to continue the growth course of
the segment.
All in all, the sales growth achieved showed that the Group portfolio and
the technologies it offers were in strong demand from the various customer
groups.
In parallel to the positive development of turnover, the Group's operating
profit (EBITDA) rose significantly by 49.2% to € 5.31 million (first half
of 2021: € 3.56 million) compared to the same period of the previous year.
Adjusted for one-off costs (e.g. M&A costs), adjusted EBITDA (Adj. EBITDA)
for the first half of 2022 amounted to € 6.54 million, which was around
46.0% higher than in the same period of the previous year (first half of
2021: € 4.48 million).
With € 3.32 million adjusted EBITDA in the Green Transportation segment
(first half of 2021: € 1.74 million) and € 3.23 million adjusted EBITDA in
the Clean Tech Solutions segment (first half of 2021: € 2.74 million),
around half of the Group operating result was attributable to the
respective business segment. In terms of Group profitability, the adjusted
EBITDA margin of 4.53% confirmed the operating margin level of the previous
year's period (first half of 2021: 4.67%).
On a net level, the technology group had to accept a negative annual result
(after minorities) of € -6.83 million in the first six months of the
current financial year. However, it should be taken into account that the
net result of the same period of the previous year was very strongly
positively influenced by a consolidation gain from a fair value measurement
of SAFE & CEC amounting to € 8.80 million. Accordingly, the net result on a
comparable basis has also improved noticeably after deducting this special
effect, which was not operationally related.
Business development in Q2 2022
The steady dynamic growth of the technology group is also particularly
evident in the quarterly analysis. After a high-growth first quarter
(+101.2% increase in revenue compared to Q1 2021), Landi Renzo continued on
its growth path with high growth momentum in the second quarter of the
current financial year with a 23.6% increase in consolidated revenue to €
77.53 million (Q2 2021: € 62.70 million).
The infrastructure business, which is represented by the SAFE & CEC Group,
proved to be the main growth driver. In this business field, revenue
increased significantly by 57.6% to € 29.98 million (Q2 2021: € 19.02
million) compared to the same quarter of the previous year. The core
business field Green Transportation also recorded significant growth in the
past second quarter and increased its segment revenues by 8.90% to € 47.55
million (Q2 2021: € 43.68 million).
At the operating result level, EBITDA increased significantly by 8.4% to €
3.48 million (Q2 2021: € 3.21 million) in line with their positive business
development. In parallel, the EBITDA margin decreased slightly to 4.49% (Q2
2021: 5.11%). In contrast, Group EBITDA adjusted for one-off costs (e.g.
M&A costs) decreased only slightly by 2.5% to € 3.87 million (Q2 2021: €
3.97 million) compared to the same quarter of the previous year. In the
same step, the adjusted EBITDA margin decreased to 5.00% (Q2 2021: 6.33%).
This still reflects the ongoing pressure on margins due to high cost
inflation in the procurement markets.
Overall, the development of turnover in the first half of 2022 was
satisfactory. Despite the challenging general conditions, we succeeded in
continuing on our growth path with momentum. Landi Renzo's earnings
performance was in line with our expectations.
Forecast and evaluation
Against the backdrop of the solid half-year performance, the promising
growth strategy and the confirmed corporate guidance, we have also
maintained our previous forecasts for the current financial year and the
following years.
Overall, we believe that the Landi Renzo Group, with its strategy and
positioning, is still well positioned to continue dynamically on its growth
path. Parallel to this, it should be possible to achieve significant
improvements in results.
Based on our unchanged revenue and earnings estimates, we hereby confirm
our previous price target of € 0.98 per share. In view of the current price
level, we continue to give the share a 'buy' rating and see significant
upside potential.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/25835.pdf
Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Date (time) of completion: 07/11/2022 (16:22 pm)
Date (time) of first distribution: 08/11/2022 (10:30 am)
-------------------übermittelt durch die EQS Group AG.-------------------
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
