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Cementir Holding

CR
Bloomberg   CEM IM
Cement & Aggregates  /  Italy  Web Site   |   Investors Relation
Also operates in : Holding Companies
Competitive pricing but lower cost supports profitability
Target
Upside 45.2%
Price (€) 7.34
Market Cap (€M) 1,168
Perf. 1W: 14.3%
Perf. 1M: 18.4%
Perf. 3M: 23.2%
Perf Ytd: 19.5%
10 day relative perf. to stoxx600: 14.6%
20 day relative perf. to stoxx600: 15.5%
Opinion change16/03/2021

Change in OpinionBuy vs Add

Change in EPS2021 : € 0.69 vs 0.64+7.48%
2022 : € 0.79 vs 0.72+9.73%

Following the group's full FY20 results, we have updated our model to incorporate the better than expected results. While FY20 EBIT was in-line with our expectations, the EPS was up by €0.10 because of lower taxes and lower net financial expenses.

For FY21 and FY22, we have left our EBITDA and EBIT estimates unchanged, but have lowered the financial expenses due to decreasing debt, and the lowered corporate tax rate to 26%, resulting in an increase in the EPS by €0.05 and €0.07 for FY21 and FY22, respectively.



Change in DCF€ 13.6 vs 10.8+25.9%

Our DCF has been positively impacted by the earnings revision. We have assumed the long-term EBITDA margin to remain in the vicinity of 22% from 2022 onwards because we believe that Cementir Holding, like other cement players, will be impacted by increasing carbon prices and other input costs, which will be offset by its digitalisation and sustainability initiatives. We have also reduced the long-term capex forecast based on the company's guidance.



Updates

10 Mar 21 Earnings/sales releases
FY20 results - a Turkish Delight

05 Feb 21 Earnings/sales releases
FY 20: performance beyond full-year guidance

10 Nov 20 Earnings/sales releases
9m 20: results in line with 9m19 but cautious gu...

29 Jul 20 Earnings/sales releases
H1 20: in for a Danish treat

14 May 20 Earnings/sales releases
Q1 20: lower result but good shareholder remu...

06 Mar 20 Earnings/sales releases
FY19: profits higher than our conservative proje...

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