NEINOR HOMES: 1H’20 RESULTS AND T.P. UPGRADE (ANÃLISIS BANCO SABADELL)
2Q'20 vs. 2Q'19 ResultsSales: € 50.5 M (-50.1% vs. -68.0% BS(e));
EBITDA: € 7.1 M (-59.0% vs. -70.5% BS(e));
Net Profit: € 3.1 M (-69.3% vs. -84.2% BS(e));
1H'20 vs. 1H'19 Results
Sales: € 101.0 M (-37.6% vs. -48.8% BS(e));
EBITDA: € 15.0 M (-45.7% vs. -52.9% BS(e));
Net Profit: € 7.0 M (-43.5% vs. -55.6% BS(e));
The company released better results than expected, especially in pre-sales, which widely beat our expectations as it sold 307 units on the 2Q on a standalone basis (adjusted for cancellations). The data, is far above that of AEDAS (127) and MVC (27), and although this type of KPI usually show volatility between quarters, we believe the data is positive. The number of cancellations was not much higher than in previous quarters, which also evidences the robustness of the company’s pre-sales portfolio.
The results show € 50 M of revenues in the 2Q’20 on a standalone basis with a gross development margin of 28% and 128 units delivered. Results came in better than expected in revenues although we play down the relevance of this factor, since most of the deliveries take place in the second half of the year (we expect 1,300 units in the full year). The company reiterates its delivery targets. No appraisals are made in this half of the year.
With these results, we raise our T.P. by +20% up to € 12.28/sh. (+17% upside; see more details below) after adjusting the NFD assumed and treasury stock. We reiterate our BUY recommendation.
Neinor Homes SA, formerly Neinor Homes SLU, is a Spain-based company engaged in the real estate sector. The Company focuses on the design, construction and promotion of residential properties. It develops housing projects in various Spanish cities, such as Malaga, Madrid, Barcelona, Cordoba, Vizcaya, Alicante, Almeria and Gerona.
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.