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

Original-Research: Greiffenberger AG - von GBC AG

Einstufung von GBC AG zu Greiffenberger AG

Unternehmen: Greiffenberger AG

ISIN: DE0005897300

Anlass der Studie: Research Report Anno)

Empfehlung: BUY

Kursziel: 7.10 EUR

Kursziel auf Sicht von: FY2016

Letzte Ratingänderung: -

Analyst: Felix Gode, Dominik Gerbing

* Improvement and optimisation of the production processes and procedures

were notable aspects of the past financial year 2014 for all divisions of

Greiffenberger AG. In addition, the focus was on enhancing the value added

and increasing product quality as well as expanding the product portfolio

and the associated expansion of the market position.

* Commissioning of the new plant in Lublin, Poland within the subgroup ABM

(drive technology division) was successfully completed in 2014 and

production was brought on stream successfully.

* As a result of a weak second and third quarter and heterogeneous ordering

behaviour of customers in the largest division, drive technology, the group

recorded a fall in revenues of 1.9% to EUR152.23 million (previous year:

EUR155.24 million).

* At the same time, there was an increase in revenues in 2014 both in the

metal band saw blades & precision strip steel division (Eberle) as well as

in the pipeline renovation technology division (BKP).

* In terms of earnings, an increase in staff, caused in particular by the

new plant in Poland, as well as a quantitative framework focused on growth,

led to a fall in EBIT from EUR6.03 million to EUR2.41 million. A positive EBIT

was achieved in all segments.

* As a result of the expanded and improved product portfolio, intensified

sales activities and expected catch-up effects, renewed growth is to be

expected for the financial year 2015. Based on our estimate, the increase

in sales in 2015 should be 4.6%, resulting in revenues of EUR159.20 million.

The growth will be driven by all divisions, although the drive technology

division will contribute the largest part.

* In terms of earnings, a significantly lower CAPEX is to be expected after

the inten-sive investment activities of the past years, and a significant

improvement in earnings is to be expected as a result of the swung-in state

of the plant in Lublin, the correspondingly enhanced value added and

optimised processes. Based on our estimates, we assume that there will be

an EBIT of EUR4.16 million and an EBIT margin of 2.6%.

* According to our estimates, we expect there to be continued improvement

of the relevant figures in the following year of 2016 both in terms of

sales and earnings.

* An improvement in sales and, in particular, the earnings situation,

should begin to be evident in 2015 after the extensive improvement and

expansion measures taken in 2014. Based on our estimates, we have

maintained our pre-vious target price for Greiffenberger AG of EUR7.10, which

at the current stock price offers a significant potential for improvement.

Accordingly, we continue to award a BUY rating to the Greiffenberger AG

share.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/12865.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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