Hexpol (Hold, TP: SEK130.00) - Minor estimate changes post-Q4
Hexpol’s Q4 results were on the light side versus our estimates and consensus (c2% miss on adj. EBIT), with a seemingly largely unchanged demand situation QOQ. The raised dividend policy (from a c25–50% to a 40–60% pay-out ratio) was already reflected in our model, while the extraordinary dividend was more of a surprise (although we had flagged the possibility). We have lowered our 2024–2025e adj. EBIT by c1% on average, and reiterate our HOLD and SEK130 target price. We see limited upside potential from the current share price and the valuation is in line with historical levels.Hexpol is organized in two business areas: HEXPOL Compounding and HEXPOL Engineered Products. HEXPOL Compounding is engaged as a supplier in the development and manufacture of polymer compounds. HEXPOL Compounding focuses primarily on two key segments of the polymer market: rubber compounding and thermoplastic elastomer compounding. HEXPOL Engineered Products is engaged as a supplier of products such as gaskets for plate heat exchangers and wheels for the forklift industry. The business area also provides rubber profiles, mainly for the construction and engineering industries.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.