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Original-Research: Semperit AG Holding - from NuWays AG
06.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to Semperit AG Holding
Company Name: Semperit AG Holding
ISIN: AT0000785555
Reason for the research: Initiation
Recommendation: BUY
from: 06.05.2025
Target price: EUR 18.20
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Overlooked niche player, Initiating coverage with BUY
Semperit is a specialized niche player for rubber products in various
industrial applications. Its most important products among others are hoses,
liquid silicone rubber products and tools, seals, escalator handrails, and
conveyor belts, where Semperit holds strong positions in Europe and other
regions.
The business can be subdivided into the two segments Semperit Industrial
Applications (SIA) and Semperit Engineered Applications (SEA). Both segments
follow different strategies.
SIA is a commoditized business where Semperit aims for a high degree of
standardization and competitive quality based on cost leadership. As
Semperit is the third largest producer of hydraulic hoses globally and the
second largest in Europe, the company can substantially benefit from
economies of scale.
SEA on the other hand is characterized by a high level of customization and
innovation. Semperit can excel thanks to its extensive know-how in rubber
processing based on over 200 years of experience in the rubber market. Over
the years, the company has developed hundreds of different mixtures of
rubber, which are hard to copy for its competitors. Further, years of
successful partnerships with its customers and a consistent high product
quality created a positive brand perception.
Semperit's business is cyclical and currently at the bottom of the cycle
after three years of slowdown. Nevertheless, the company has not been idle
but invested massively in expanding its capacities to come back even
stronger in the next upswing. In addition, Semperit acquired the highly
profitable and fast-growing RICO group in 2023 (14% sales CAGR 2010-2022), a
specialist in the liquid silicone sector. Although FY25e could still be
challenging, we expect a medium-term sales CAGR of 3.7% (FY24-FY27e) and an
EBITDA CAGR of 4.5% (FY24-FY27e), supported by the announced EUR 500bn
infrastructure program in Germany.
Semperit has not only demonstrated resilience in the crisis through
disciplined cost management but is also ideally equipped for the upswing
thanks to strategic investments. Looking at the current valuation of 6x
trailing EV/EBITDA, the potential reward clearly outweighs the risks.
We initiate coverage with a BUY recommendation and PT of EUR 18.2, based on
DCF.
You can download the research here: http://www.more-ir.de/d/32470.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2130580 06.05.2025 CET/CEST
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