Original-Research: euromicron AG (von GBC AG): BUY

Original-Research: euromicron AG - von GBC AG

Einstufung von GBC AG zu euromicron AG

Unternehmen: euromicron AG

ISIN: DE000A1K0300

Anlass der Studie: Research Report (Anno)

Empfehlung: BUY

seit: 04.04.2016

Kursziel: EUR 12.10

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

* For euromicron AG, 2015 was shaped by the Company's reorganisation. The

Company not only undertook a restructuring and streamlining of the Group

structures but also performed a strategic focusing. The Company is now

posi-tioned in the fields of digitalised buildings, critical infrastructure

and industry 4.0, thereby focusing on its combined expertise in systems

integration and its own supplementary technology solutions.

* In FY 2015, revenues were still slightly down by 0.4% at EUR344.89 million.

On the one hand some projects were deliberately not accepted in order to

concentrate fully on high-margin projects. On the other hand, developments

for new products are not yet fully completed with the result that they will

not contribute to growth until 2016.

* Earnings were burdened by various expenses. On the one hand, impacts were

felt from various operating effects relating in particular to past orders

with a loss-free valuation that no longer contributed to the profit margin

as well as expenses for the development of new business areas. On the other

hand, the reorganisation measures reduced the result and impacted EBITDA

with a total of EUR6.83 million. In addition, there was extraordinary

amortisation and depreciation of EUR6.31 which had an additional negative

effect on EBIT.

* In total, reported EBITDA amounted to EUR6.92 million compared to EUR21.15

million in 2014. The EBITDA figure adjusted for extraordinary effects was

significantly higher at EUR13.76 million.

* We expect a significant increase in revenues and earnings for FY 2016.

Whilst we expect to see revenues of EUR359.86 million, primarily contributed

by the Smart Buildings segment, we expect EBITDA of EUR15.02 million. This

once again includes EUR2.5 million in extraordinary expenses to finalise the

reorganisation. Adjusted for extraordinary expenses, operating EBITDA

should thus be EUR17.52 million, which is equivalent to an adjusted EBITDA

margin of 4.9%. For 2017, we do not expect any extraordinary expenses,

which will be associated with a further improvement in the EBITDA to EUR21.25

million or an EBITDA margin of 5.6%.

* We regard the management of euromicron AG as having been successful in

effectively reorganising the Group. Even if the figures in 2015 were

negatively impacted by the reorganisation, it is clear that the foundations

for profitable growth have been laid for future years. The first signs of

success are already evident and we are confident that the Company will

return to its previous strong income position in the next few years.

* On the basis of the expected development and of our forecasts, the shares

of euromicron AG are currently trading at a favourable P/B ratio of around

0.5 and a 2017 P/E ratio of around 7. This means a significant

un-dervaluation can be assumed. Based on our DCF model we calculate a fair

value of EUR12.10 per euromicron share. Given the high upside potential, we

rate it a BUY.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13687.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,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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