Report update on Schaffner Holding AG by Research Dynamics: Guidance confirms positive trend (News mit Zusatzmaterial)
DGAP-News: Research Dynamics / Schlagwort(e): Research Update
Report update on Schaffner Holding AG by Research Dynamics: Guidance
confirms positive trend (News mit Zusatzmaterial)
24.02.2014 / 07:00
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Guidance confirms positive trend
1HFY2014 key data guidance
Schaffner today, in its preliminary guidance update for 1HFY2014, said that
it expects net sales to grow by around 12% y/y to over CHF100mn and EBIT
margin to expand by 300bps y/y to around 4.8%. The company confirmed that
all divisions have done well so far, and expects 1HFY2014 results to be
driven by growth across the board. For FY2014, the company guided for a
sales growth of 10% y/y and expects EBIT margin to improve y/y (EBIT margin
in FY2013: 4.8%).
The guidance is encouraging, especially as this follows the strong
performance in 2HFY2013 (sales growth of 10% y/y, and EBIT margin expansion
of 130bps y/y and 560bps h/h to 7.4%). This supports our conviction that
the management's efforts to deliver profitable growth have started to bear
fruit. Our optimism is further enhanced by the ongoing improvement in the
economic fundamentals of the US and Europe. We expect full year sales
growth of around 8%, lower than the company's guidance of 10%. The
conservative estimate is mainly attributable to the ongoing volatility in
the emerging market currencies. Our EBIT margin estimate for the full year
is 7.3% (up 250bps y/y) as we expect the ongoing operational excellence to
boost profitability in 2HFY2014.
Still trading at a discount to its peers
Since our initiation in the month of December 2013, the stock has gained by
around 8% and has outperformed the broader SPI Index by 2ppts. This
performance can largely be attributed to the improved investor sentiment
after the strong 2HFY2013 results. Despite this, Schaffner still trades at
an attractive discount of 18%, 21% and 28% on EV/EBITDA, EV/EBIT and P/E
basis to its product peers, respectively. Similarly, the stock trades at a
discount of 20%, 22% and 19% on EV/EBITDA, EV/EBIT and P/E basis to its
industry peers, respectively. Given the expected robust growth in sales and
expanding operating margins, we believe a discount to its peers is
unwarranted.
Ende der Corporate News
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Zusatzmaterial zur Meldung:
Dokument: http://n.equitystory.com/c/fncls.ssp?u=FANTXBNRFG
Dokumenttitel: Schaffner_Guidance Update_Research Dynamics_24 Feb 14
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253797 24.02.2014