Research | 10 November 2023 00:00
Original-Research: Landi Renzo S.p.A. – from GBC AG
Classification of GBC AG to Landi Renzo S.p.A.
Company Name: Landi Renzo S.p.A.
ISIN: IT0004210289
Reason for the research: GBC Italian Champions
Recommendation: BUY
Target price: 0.70 EUR
Last rating change: -
Analyst: Marcel Goldmann, Cosmin Filker
„Specialist for gas and hydrogen mobility“ After the transition year 2023, significant increases in turnover and earnings are expected for the following years; significant profit driver of the green energy turnaround
Landi Renzo S.p.A. (Landi Renzo) is a technology group active in the natural gas, biogas and hydrogen mobility sector and in the infrastructure sector (natural gas, biogas/RNG and hydrogen refuelling stations). With its two divisions (Automotive; SAFE&CEC), Landi Renzo operates in over 50 countries worldwide and generates around 90.0% of its revenues abroad.
With its extensive technology portfolio, the company is involved in the advancing energy transition and covers the entire value chain with a wide range of products and applications. These range from compression solutions for biogas and hydrogen grid feed-in (including transport) to compression solutions for gas and hydrogen mobility for cars and commercial vehicles/trucks. In recent years, the technology group has started to focus more on gas and hydrogen mobility for heavy commercial vehicles and on alternative compression solutions for gas and hydrogen infrastructures in order to further fuel its growth momentum. In the course of this, various acquisitions (e.g. Metatron or Idro Meccanica) were also made.
The growth course is reflected in a steady increase in revenues. In spite of difficult conditions, the group’s turnover increased significantly by 26.6% to € 306.30 million (previous year: € 241.99 million). Organic growth effects in both business fields – Green Transportation and Clean Tech Solutions – contributed significantly to the dynamic increase in Group turnover. The main growth drivers were the infrastructure business (Clean Tech Solutions business) and the European automotive supplier business (OEM business in the passenger car sector) of the Green Transportation division. In contrast to the dynamic development of Group turnover, Landi Renzo had to accept a significant decline in EBITDA of 12.5% to € 11.04 million (previous year: € 12.62 million) compared to the previous year due to high pressure on margins (high inflation on the procurement and energy markets, etc.) and price adjustments that only took effect after a time lag. Consequently, the EBITDA margin also fell to 3.6% (previous year: 5.2%).
In the first six months of the current financial year, the Landi Renzo Group was able to continue its growth streak despite a challenging environment with a moderate 5.1% increase in turnover to € 151.81 million (previous year: € 144.45 million). In contrast, the company recorded a decline in earnings to € ‑0.31 million (previous year: € 5.31 million), mainly due to an unfavourable revenue mix in the core segment „Green Transportation“.
For the current financial year 2023, we expect an increase in revenue to € 323.88 million and a decline in EBITDA to € 9.58 million due to the continuing pressure on margins. From financial year 2024 onwards, we expect significant earnings growth, which should result from a recovery in the after-market business and the increased expansion of the high-margin MHD & infrastructure business. Based on our DCF model, we have determined a price target of € 0.70 per share. With regard to the current share price level, we assign a „BUY“ rating and see significant share price potential.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28209.pdf
Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821⁄241133 0
research@gbc-ag.de
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Disclosure of potential conflicts of interest in accordance with Section 85 WpHG and Art. 20 MAR The following potential conflict of interest exists at the company analysed above: see individual studies; a catalogue of potential conflicts of interest can be found at:
https://www.gbc-ag.de/de/Offenlegung
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Editorial deadline: 06.11.2023
Date and time of completion of the research report (german version): 09.11.2023 (08:13 am)
Date and time of the first disclosure of the research report (german version): 09.11.2023 (10:00 am)
Date and time of completion of the research report (english version): 09.11.2023 (8:07 pm)
Date and time of the first disclosure of the research report (english version): 10.11.2023 (10:30 am)
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