Concorde Securities - Chemical Works of Gedeon Richter Plc (RICHTER) Richter Gedeon - Record FY2021 results, uncertain future

Report

Concorde Securities

Attila Vago

Richter Gedeon - Record FY2021 results, uncertain future

We will reduce our 12-month TP from HUF 10,900 per share to HUF
9,805, mainly due to the heighted risks arising from the military conflict
between Russia and Ukraine.
 The discounted value of Richter's direct exposures in Russia and
Ukraine (including fixed and current assets) and the expected future
cash flows from these countries together represent approximately HUF
1,100 per share (15 percent of the current market capitalization), which
we completely ignored when setting our new target price.

22/03/2022 17 EN

Underlying

Chemical Works of Gedeon Richter Plc

Chemical Works of Richter Gedeon is a multinational pharmaceutical company that is engaged in the research, development, production and marketing and trade of pharmaceutical products. Co.'s activities are divided into two major business segments: Pharmaceutical, including research, development and manufacturing of pharmaceutical products; and Wholesale and Retail including wholesale and retail trade through the distribution chain as well as marketing of its products. Co. is primarily engaged in production of gynecological, cardiovascular and gastroenterological products, antibiotics, antimicotics, OTC and medicines for treatment of the central nervous system.

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HU0000123096 Budapest Stock Exchange Hungary

Provider

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.

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Analysts

Attila Vago

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Richter Gedeon - Record FY2021 results, uncertain future

Guidance unchanged, clean EBIT beat estimates

Guidance reiterated after a strong Q2 performance

Massive Q1 beat on FX gains, guidance reiterated

Encouraging top line with weak profitability, while Mobility outperforms

Consistent growth in Q3, net profit boosted by Spanish network sale

Record net profit in Q3, guidance maintained

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