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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
9-month 2022: Landi Renzo continues on a clear growth path despite
difficult environment; positive operating earnings development; GBC
estimates and price target confirmed after reaffirmation of corporate
guidance
Business development 9-month 2022
Landi Renzo S.p.A. published its nine-month figures for the current
business year at the end of November. According to these figures, the
technology group continued its growth course in the first three business
quarters despite a challenging environment (Ukraine war, COVID aftermath,
supply chain problems, etc.). Compared to the same period of the previous
year, consolidated revenues increased significantly by 33.1% to EUR 216.35
million (9M 2021: EUR 162.56 million).
The dynamic increase in group turnover was due to significant (organic)
growth effects from an increased business volume in both business fields -
Green Transportation and Clean Tech Solutions. The technology company
benefited in particular from increased investments in gas and hydrogen
infrastructures (infrastructure business) and robust after-market demand
(automotive retrofit business). In addition, inorganic growth effects from
acquisitions (Metatron Group and Ido Meccanica) also contributed
significantly to the positive sales trend.
The Group's revenues were primarily driven by the core business area of
Green Transportation. In this Group division, the revenue generated
increased significantly by 17.9% to EUR 141.24 million (9M 2021: EUR 119.83
million), mainly due to the recovery effects in the aftermarket business in
Latin America and Europe as well as increased orders from leading OEM
customers. The Metatron Group, which was acquired last summer, contributed
EUR 10.41 million to the increase in segment revenue.
The Clean Tech Solutions business field (SAFE & CEC, consolidation of the
investment from May 2021) was also able to increase its segment revenue
(excluding the revenue of Idro Meccanica S.r.l. of EUR 3.68 million acquired
at the beginning of 2022) by 7.80% to EUR 71.44 million (pro forma revenue
without Idro Meccanica 9M 2021: EUR 66.30 million). The significant increase
in revenue reflects the increased interest of numerous countries in gas
mobility, which are expanding their gas-based distribution networks (gas
filling stations, etc.) as part of this. It should be noted here that the
business development of the division was also negatively affected by
difficulties on the procurement markets (unstable supply chains, etc.), and
thus stood in the way of an even more positive business development.
With regard to the order situation of the infrastructure business, the
Landi Renzo Group announced that the division continues to be in 'growth
mode' and has an order backlog covering the first half of the 2023
financial year.
Parallel to the positive group revenue development, the operating result
(EBITDA) of the technology company also increased significantly by 18.8% to
EUR 7.07 million (9M 2021: EUR 5.95 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 nine months of the current financial year
amounted to EUR 8.70 million, which was 15.1% higher than in the same period
of the previous year (9M 2021: EUR 7.56 million).
The Green Transportation segment accounted for EUR 4.42 million of the
adjusted EBITDA (9M 2021: EUR 2.80 million) and the Clean Tech Solutions
segment for EUR 4.32 million (9M 2021: EUR 5.37 million). Both segments thus
contributed almost equally to the Group's operating result. In terms of
operating profitability, the adjusted EBITDA margin of 4.0% almost
confirmed the operating margin level of the same period of the previous
year (9M 2021: 4.6%).
At the after-tax level, on the other hand, Landi Renzo posted a negative
net result (after minorities) of EUR -10.12 million, a deterioration compared
to the same period last year (9M 2021: EUR -1.90 million). It should be
noted, however, that the net result of the same period of the previous year
was very strongly influenced by a consolidation gain (EUR 8.80 million) from
a fair value measurement of SAFE & CEC.
Based on the signs of recovery in some core markets and the order book at
SAFE & CEC, management has confirmed its previously issued guidance for the
2022 financial year and continues to expect improved Group results compared
to the previous year.
Business development in Q3 2022
The quarterly view also reflects well the steady growth of the Landi Renzo
Group. After a high-growth second quarter (Q2 growth of 23.6% to EUR 77.53
million), the technology company was also able to continue its previous
growth series in the third quarter with significant revenue increases of
8.0% to EUR 71.91 million (Q3 2021: EUR 66.60 million).
Growth in the third quarter was primarily driven by significant growth
impulses in the Green Transportation business field, which increased its
segment revenue significantly by 10.5% to EUR 47.39 million (Comparable Q3
revenue 2021: EUR 42.89 million). The Clean Tech Solutions division also
continued to expand its infrastructure business with moderate revenue
growth of 3.4% to EUR 24.52 million (Comparable Q3 revenue 2021: EUR 23.71
million).
On the operating result level, contrary to the positive revenue trend, a
decline in adjusted EBITDA by 29.9% to EUR 2.16 million (Q3 2021: EUR 3.08
million) had to be accepted due to a less favourable revenue mix (higher
OEM revenue share) and higher raw material costs. In parallel, the adjusted
EBITDA margin decreased to 3.0% (Q3 2021: 4.60%).
Forecast and evaluation
Against the backdrop of their solid nine-month performance, confirmed
corporate guidance and successful growth strategy, we have maintained our
previous estimates for the current financial year 2022 and subsequent
financial years.
In view of our unchanged sales and earnings forecasts, we hereby confirm
our previous price target of EUR 0.98 per share. With regard to the current
price level, we continue to give the Landi Renzo share a 'buy' rating and
see significant upside potential.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/26155.pdf
Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date (time) of completion: 07/12/2022 (15:01 pm)
Date (time) of first distribution: 08/12/2022 (10:00 am)
-übermittelt durch die EQS Group AG.-
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