Record quarterly EPS raises our DPS forecast
- ANY Security Printing Co. posted a net profit of HUF 2.0bn (+420% YoY or +96% QoQ) on net sales of HUF 17.9bn (+50% YoY or +19% QoQ) for Q3/23, boosted by the extraordinary contribution of export sales. EPS for the 9M/23 reached 243 HUF/sh. As a result, we raise our DPS estimate from HUF 214 to HUF 280. We reiterate our 12m ex-div TP at 2,490 HUF/sh, leaving a 42% total return upside potential.
- 9M/23 net profit came in at HUF 3.5bn vs HUF 2.0bn a year ago (+73%% YoY), despite the same period of 2022 having been favourably affected by the pent-up demand for personal documents, as well as the additional income from election ballots. During Q3, ANY continued to benefit from the launch of the enormous Angolan and other export projects, which together accounted for 66% of total Q3 sales. Favourable FX movements in Q3 erased H1 losses fully and turned positive by the end of Sept. This alone added HUF 417mn to net results in the third quarter. However, finance costs amounted to HUF 152mn due to the need for revolving loans.
- Overall, ANY reported a solid set of results again. Our DPS forecast translates into a DivY of 14.4%, significantly above the current HGB yields on all tenors. Based on dividend expectations, ANY will likely offer the highest dividend yield in 2024 from this year’s profit in Hungary. ANY’s DY is also competitive with inflation-linked bonds, which makes the stock more attractive, in our view.
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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