Report
Hai Thanh Le Phuong

Masterplast - Remarkable Results On Hungary, EBITDA Margin Improves Further

Masterplast – Instant Earnings Comment

Recommendation:  Accumulate (unch.)

Target price (12M): Under Revision (unch.)

 

  • Masterplast reported revenues came strong in the seasonally strongest quarter, up by 10.8% y-o-y to EUR 31.4 mln. EBITDA came to EUR 2.6 mln, up by 21% y-o-y, as a result of higher revenues and lower other OPEX. EBITDA margin also improved accordingly to 8.4% from 7.8%.
  • Revenues improved y-o-y by 10.8% on the back of strong Hungary (which contains partial contribution from newly acquired T-cell). Hungarian sales increased 31.9% y-o-y despite the mild deceleration in the quarter regarding industrial growth. Romania and Exports were strong, these three segments compensated for lower sales in Poland. With regards to Poland, according to the Company, generally there was a slower growth in building industrial output.
  • On a product breakdown, Thermal insulation systems and industrial applications were the main drivers of the solid growth.
  • Material costs also increased above 10% y-o-y while due to higher number of employees in Serbia and stretched wages, PEREX also increased substantially, 26.9% y-o-y. This was compensated by the positive change in inventories and resulted in higher commercial margins as well as improved EBITDA margin (8.4% vs. 7.8% a year ago).
  • Other financial income improved significantly, to +397 ths from -337 ths a year ago, due to favorable exchange rate impact in the quarter (weaker HUF and stronger UAH).
  • EPS output in Serbia went as planned while foam production in Kál was lower than expected.
  • All in all, Masterplast posted very strong results in the seasonally strong quarter and is on track to reach EUR 7 million EBITDA for 2019. Mgmt expects outlook to remain positive but the main question is whether Hungarian growth would stay sustainable in our view.

 

 

 

Hai Thanh Le Phuong, CFA
Head of Research

CONCORDE SECURITIES LTD.

Hillside
55-61 Alkotás street, H-1123 Budapest.
Phone: | Fax: | Mobil:
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MEMBER OF THE CONCORDE GROUP

 

 

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Underlying
Masterplast

MASTERPLAST Nyrt. Masterplast Nyrt is a Hungary-based company active in construction sector. The company is a producer and distributor of construction industry products. Its product portfolio includes facade insulation systems and components, roofing underlay and roofing accessories, bituminous corrugated sheets and shingles, thermal-sound and water insulation materials, dry construction elements, as well as plaster profiles and accessories, polypropylene foils and bags and foam tapes. It has two production plants, based in Kal, Hungary and Subotica, Serbia.The Company sells its products domesticaly and exports it to Estonia, France, Greece, the Netherlands, Italy, Latvia, Lithuania, the Russian Federation, Sloveania and Turkey.

Provider
Concorde Securities
Concorde Securities

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.

Analysts
Hai Thanh Le Phuong

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