ANY Security Printing Company: Presses to restart, followed by dividends and growth (BUY - transfer of coverage)
In this report, we transfer coverage of ANY Security Printing Company, trim our price target (PT) slightly, to HUF 1,424/share, and upgrade the stock to BUY, as we see upside of c.22%. We have cut our forecasts for this year, to include the effect of the health and economic crisis, but believe that a portion of the lost revenues from ANY’s key business segments has shifted in time, rather than being lost completely. Thus, we anticipate a recovery next year. The company could generate growth even in the longer term, due especially to its exposure to the speciality printing services segment and geographies with growth potential. We also expect the dividend payments to return next year and pencil in 100% payouts over our forecast period. This is also likely to result in superior dividends yields vs. its peers. Finally, we also highlight the company’s strong cash generation characteristics, and we believe the recent increase in the absolute and relative leverage is only temporary. At our EV/EBITDA of 8.0x for 2020E, ANY is trading at a premium vs. its peers, but its growth potential, top-line diversification, and superior dividend yields help to explain this premium, in our view.Any Security Printing is a securities products group based in Hungary. Co. produces security products and solutions (tax stamps. stickers with security elements), plastic and paper cards (document cards, bank and telephone cards, commercial cards), personalized business and administration forms, and conventional printing products. Co.'s product offering its organized along three segments: Security Products, Solutions (paper-based documents, excise and tax stamps, security printers and security inks, additives); Card Production, Personalization (document cards, bank cards and loyalty cards); and Form Production, Personalization (transactional mailing, business, lottery and election forms).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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