AGM approves dividend proposal, new contract with Spanish air traffic control
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The Annual General Meeting of Frequentis AG (ISIN ATFREQUENT09, General Standard, FQT GY) on 14 May - the first anniversary of the initial public offering – was characterised by the Corona crisis and was therefore held virtually. Without exception, the proposals of the management were accepted by a large majority. Frequentis will adhere (subject to legal requirements) to distributing a dividend (€0.15 per share) - which is to be paid on 27 November 2020. In operational terms, the crisis has had little impact on Frequentis, whose customers are mainly from the public sector. The latest order from Spain shows that business with safety-critical infrastructure is not subject to the usual economic fluctuations. This is also reflected by the multiples of similarly positioned peer companies. Against this background, Frequentis still seems attractively priced to us with a EV/EBIT2020 ratio of 15.2 (Peer group median: 20.1).
Our analysis results in a fair value of €25.00; we therefore reiterate our "Buy" rating.
Frequentis AG is an Austria-based supplier of communications and information systems, diversifying its activities into two business segments: ATM (Air Traffic Management) business segment, which includes ATM Civil, including Information Management, and Defense business fields, and PST (Public Safety & Transport) business segment, which includes Public Safety, Public Transport and Maritime business fields. As of December 31, 2010, the Company had seven wholly owned subsidiaries in the area of Sales & Operations, four wholly owned subsidiaries and one majority owned subsidiary, as well as one affiliate, APUS Software GmbH, in the area of Software, and two wholly owned, one majority owned, one minority owned, as well as one affiliate, 3T Communications AG, in the area of Services. The Company's subsidiaries are located in the United States, the United Kingdom, Canada, Australia, Germany, Singapore, Slovak Republic, Romania, and the Czech Republic.
Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.
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