Comarch: Expecting a record high year
We keep CMR at a BUY and lift our FV to PLN 226.9 (from PLN 215) as we have lifted our 19E/20E/21E EBITDA forecasts by 21%/4%/2% following a better than expected revenue mix in 3Q19 which supports margins. CMR’s wide product, sector and geographical diversification with a global footprint helps the company to grow. A strong position in ERP Poland, loyalty systems in Trade&Services and Industry segments plus its already strong position in the Telco segment should soon be strengthened when CMR gains 5G credentials on the contract in South Korea. An improving revenue mix towards high-margin proprietary software & services supports CMR’s profitability (LTM gross margin has been growing consistently since 1Q18). Apart from the global economic situation, continuously rising salary costs are the main risks for CMR’s investment case. Given the growing results and FCF, we would prefer it if CMR reviewed its dividend of DPS PLN 1.5 with a mere 0.8% DY.Comarch is a producer of IT systems for key sectors of the economy: telecommunications, finances, public administration, large companies and the sector of small and medium-sized companies. A range of Co.'s product offering includes ERP-class and financial and accounting systems, CRM systems and loyalty software, sales support and electronic document exchange systems, knowledge management, Business Intelligence, security and protection of data and many other solutions. Apart from providing IT solutions to its customers, Co. is focused on professional customer service and on providing consulting, advisory and integration services as a uniform package.
Haitong is the first international Chinese investment bank and our goal is to be the primary channel for capital flows into and out of China. During 2015 the Senior Management Team in London was expanded significantly to focus on this objective and to provide a full-service cross-asset markets business coupled with sector-focused investment banking. We work closely with our world-wide network of offices to bring a true depth of understanding to all client situations.
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.