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

Original-Research: KPS AG - von GBC AG

Einstufung von GBC AG zu KPS AG

Unternehmen: KPS AG

ISIN: DE000A1A6V48

Anlass der Studie: Research Report (Anno)

Empfehlung: BUY

Kursziel: EUR 9.80

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

* With sales of EUR122.92 million, KPS AG not only generated new record sales

and an increase of 10.7% compared to the prior year, but also exceeded its

ambitious forecast of EUR120 million. We also exceeded our revenue estimates.

* The HY2 2014/15 demonstrated particularly strong performance after a less

dynamic HY1 2014/15 with a year-on-year increase of 4.4%. The reason for

this was the delayed commissioning of a project; however, this was

compensated for later on.

* KPS AG also achieved a new record earnings figure. EBIT of EUR18.61 million

was 11.5% higher year-over-year and the EBIT margin recorded a slight

increase from 15.0% to 15.1%. The increase in margin was primarily due to

lower costs of material, given the lower demand for third-party services

and an increased use of own employees.

* The management of KPS AG expects a further increase in sales of 13.9% to

EUR140 million for FY 2015/16. Due to the high level of orders on hand with a

forward coverage of more than 18 months, a large number of pending new

projects and a 'very satisfactory' start to the new FY 2015/16, we expect

that the forecast provided by the Executive Board once again will be

achieved and have revised our previous forecast up to EUR141.35 million. We

expect the foreign business in particular to be a significant driver for

further growth.

* We also expect to see further increases in profits. For FY 2015/16, we

are expecting EBIT of EUR22.20 million, which is also in line with the

expectations of the Executive Board of KPS AG. For 2016/17, we expect an

increase to EUR25.00 million, which is equivalent to an EBIT margin of 16.2%.

In the medium term, we regard EBIT margins of up to 17% as realistic. From

a quarterly point of view, this figure was already achieved in Q4 2014/15.

* Due to the very strong operating performance, the KPS AG share price is

not too ambitious, despite continuing to increase in price over the last

few years. Based on our estimates, we have calculated a P/E ratio of 10.7

for FY 2016/17 and EV/EBITDA of 8.8. Given the high quality of the

financials, the strong operating cash flow together with low investment

requirements and a high return on capital, we see significant upward

potential.

* Based on the 2014/15 Annual Report, we have revalued the KPS AG share and

determined a new fair target price of EUR9.80 (previously: EUR8.35). The rating

thus remains unchanged: BUY.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13539.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

[e-mail]

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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