Heidelbergcement: The age of reason. Feedback from the CMD.
Heidelbergcement: (BUY, Fair Value EUR92 (+17%))The age of reason. Feedback from the CMD.
In uncertain times, HEI focus on optimisation: no large deals in the pipeline but a constant priority given to margins, cash conversion, assets and footprint optimisation, on the back of EUR1.0-1.5bn divestments. Based on a 5% lfl EBITDA growth pa, 2018-20 cumulated FCF before expansion capex should stand at EUR6bn. Core mature countries, apart the UK, are promising; while the management remains optimistic on Indonesia and Italy. Last but not least, the EPS will be benefited from further financial charges and cash tax payment decline.
HeidelbergCement is engaged in the production and distribution of cement and aggregates, concrete and building products. Co.'s product range is complemented by downstream activities, such as ready-mixed concrete, concrete products, and concrete elements; in some countries, asphalt and building products, such as bricks and roof tiles, lime, or sand-lime bricks, are also manufactured. Furthermore, Co. provides services such as worldwide trading in cement and coal by sea. Co.'s products are used for the construction of houses, infrastructure, and commercial and industrial facilities.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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