ALFEN: Charging ahead: Alfen powers on | BUY | EUR140 VS. EUR115
ALFEN - BUY | EUR140 VS. EUR115 (+20%)Charging ahead: Alfen powers on
We increase our TP on Alfen from EUR115 to EUR140 following solid H1 results and a better than expected outlook, illustrated by new guidance targeting revenues in the EUR410-470m range (vs EUR350-420m) for FY 2022. Alfen posted H1 revenues of EUR205m highlighting impressive growth of 78%, with EBITDA margin above 18% despite supply chain tensions affecting gross margin. EV charging, with more than 200% growth YOY, was the main contributor, now representing more than 60% of the total top line. Thanks to its good inventory management and strong reputation in product quality, Alfen is very well positioned to benefit from rising demand for charging points in Europe (65% CAGR 2021-2030). Consequently, after meeting several private charging point operators (CPOs) and integrating Alfen’s new sales guidance into our model, we increase our DCF based TP to EUR140 and confirm our Buy rating on the stock.
Alfen NV (Alfen) is a company based in the Netherlands, engaged in the design, development and production of electric grid equipment. The Company is active in three business lines: Smart Grids, which supplies standardized electricity grid connection systems, secondary transformer substations, local power grids, devices for grid automation, as well as software and back-end systems for remote management and grid control; Energy Storage, responsible for development and installation of modular energy storage systems under the brand TheBattery, which are used by utilities, grid operators, energy traders and industrial companies, among others, and Electric Vehicle (EV) Charging, which supplies EV charge points in a variety of capacities and functionalities for use at home, work and in public areas. In addition, Alfen offers service, management and maintenance activities, including remote support and monitoring, as well as an in-house technological know-how center.
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