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SACYR: 1Q’21 RESULTS (ANÁLISIS BANCO SABADELL)

1Q'21 vs. 1Q'20 Results:
Net Business Figure: € 1.057 Bn (+7% vs. +9% BS(e));
EBITDA: € 194 M (+17% vs. +9% BS(e));
Net Profit: € 25 M (-21%).

The company has released a solid set of results, above our expectations in EBITDA, although somewhat below in revenues. We still see strong growth in operating profit (+17%) thanks to some concessions going into operation, as they account for 81% of group EBITDA (vs. 77% last year), with largely no risk in demand. On the quarter new assets have become operational, such as the Tláhuac Hospital and the University of Idaho, as well as the new water assets in Chile.
By divisions, Concessions (52% of EBITDA; not every concession is included in this division) grew by +24% for the aforementioned reasons, Engineering & Infra (35% of EBITDA) increased by +15%, and Services (10% of EBITDA) fell by -6% due to the impact from Covid-19 on the Multiservices business.
The EBITDA margin rose by +150bps thanks to the larger contribution from concessions, which has higher margins. Net Profit would show the impact from Repsol’s stake (positive one-off of € 251 M).
Our view on the stock remains positive, even after the strong performance YtD (+15%, +6% vs. IBEX). BUY. T.P. € 2.53/sh. (upside +10%).