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 (Update)

Empfehlung: BUY

Kursziel: EUR 6.80

Kursziel auf Sicht von: FY2016

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

* After a relatively weak Q1 2015, Greiffenberger AG was able to

significantly improve sales growth in Q2 2015. Revenue in Q2 2015 was EUR

39.8 million compared to EUR 34.6 million in Q1 2015. The Eberle and BKP

subsidiaries made a significant contribution to the solid performance as

they both experienced significant improvements in sales. The ABM subsidiary

also improved significantly in Q2, even though they still failed to reach

the previous year's earnings levels. The overall semi-annual sales at the

group level were EUR 74.43 million and thus 1.7% below the levels from the

previous year.

* In terms of EBIT, the same amount as the previous year was achieved,

despite total operating performance falling by EUR 4.12 million, primarily

due to reductions in inventories. The reason the EUR 0.67 million EBIT

remained unchanged from H1 2014 was cost reductions, which were carried out

at all three consolidated companies, and the impact they had.

* Along with the publication of the semi-annual figures, Greiffenberger AG

detailed the guidance for the FY 2015. Revenue is projected to be in a

bandwidth between EUR 153 and 158 million. ABM shall play a decisive role

in reaching the upper or lower portion of the range as the growth in HY1

2015 has not yet fully unfolded. Nevertheless, the prospects for HY2 2015

are very positive with a book to bill ratio exceeding 1.

* In the face of a somewhat weaker than expected sales development at ABM,

we have adjusted our sales projections slightly and now expect EUR 154.86

million, which is also within the range of the projections issued by the

company. We still expect significantly intensifying growth dynamics for

2016 across all subsidiaries.

* Due to the slightly reduced sales projections, we have adjusted the

revenue projections. Rather than the previously expected EUR 4.16 million,

we now expect an EBIT of EUR 3.75 million. We are still forecasting an EBIT

margin of 4.1% for 2016. In the process, the cost reductions already

underway will be supplemented with economies of scale as revenue further

increases.

* Overall, we still see Greiffenberger AG as making the right moves to once

again achieve historic profitability levels. In addition, the

Greiffenberger AG shares have a very affordable valuation. Currently the

company is trading at a 30% discount to the equity value. According to our

estimates, we expect a P/E ratio for the FY 2016 of about 8. In the face of

our slightly downgraded estimates, we are adjusting the target price from

the previous EUR 7.10 to EUR 6.80. Thus the BUY rating has remained firmly

in place.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13185.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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