ANY Security printing - Challenges may overshadow the long term outlook
Challenges may overshadow the long term outlook
- Summary: ANY Security Printing Co. reported a net income of HUF 386mn on net sales of HUF 11.9bn in Q3/22. As a result, the Company reached a net profit of HUF 2.0bn on net sales of 35.2bn in the first 9 months of 2022. It’s worth noting that we expect an EPS of HUF 152 for 2022, out of which an EPS of HUF 141 was achieved in the period between January and September.
- Key negatives: Despite the fact that Q3 revenues unexpectedly rose 2% QoQ on the back of the growing export sales, operating and net profit were broadly in line with our expectations. Due to the skyrocketing energy costs, as well as the rising labour and material costs, we are concerned that the Company will be able to meet our full-year net profit expectation of HUF 2,178mn.
- Key positives: We think that the Company remains an attractive dividend stock as it offers a dividend yield of around 10%. The Company announced to have carried out a milestone investment and signed a 10Y contract with Angola – both are of strategic importance in terms of the expanding export business. The EUR 130 million contract with Angola or the installation of the new printing machine will support ANY to achieve improving results in the future.
Any Security Printing is a securities products group based in Hungary. Co. produces security products and solutions (tax stamps. stickers with security elements), plastic and paper cards (document cards, bank and telephone cards, commercial cards), personalized business and administration forms, and conventional printing products. Co.'s product offering its organized along three segments: Security Products, Solutions (paper-based documents, excise and tax stamps, security printers and security inks, additives); Card Production, Personalization (document cards, bank cards and loyalty cards); and Form Production, Personalization (transactional mailing, business, lottery and election forms).
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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