Polish Auto Parts Distribution: sound recurrent growth prospects (Auto Partner downgraded to HOLD; Inter Cars stays BUY)
We maintain our BUY rating on Inter Cars (CAR). Our new 12M price target of PLN 756 offers a sound 31% potential upside. Following Auto Partner’s (APR) strong performance over the past 12 months, we have downgraded the stock to HOLD. Our new 12M PT of PLN 30.9 offers a limited 8% potential upside. While price increases should no longer boost the top-line growth in the sector this year, we see room for sound recurrent revenue growth at both APR and CAR, driven by volumes. Also, after last year’s FX-related profitability turbulence, in 2024E, we do not expect any additional pressure on the gross margin. A rising scale of operations and, thus, improving efficiency could help to offset the pressure on the operating margin from minimum wage increases (c.+20% yoy in Poland this year). The market’s long-term fundamentals remain solid. Our preference goes to CAR, on valuation grounds, as it is trading at a 2024E EV/EBITDA of 7.5x, a 24% discount vs. its peers and also a 25% discount vs. APR.Auto Partner SA is a Poland-based company engaged in the auto, truck and motorcycle parts industry. The Company is an importer and distributor of spare parts for cars and light commercial vehicles. Auto Partner SA is an enterprising entity with its headquarters as well as logistic and distribution centre located in Bierun near Tychy. The Company has approximately 60 branch offices across the domestic markets and some representative offices in neighboring countries, in the Czech Republic, Slovakia, Ukraine and Belarus, among others. Auto Partner SA distributes stabilizer links, steering rod end sets, steering rods, suspension arms, pins, rubber - metal parts, power steering pumps and steering gears, among others.
Inter Cars is an automotive spare parts distributor for passenger cars, commercial vehicles and trucks in Middle-Eastern Europe. The product range of Co. reaches over one million different automotive spare parts for passenger cars and trucks. No matter if the car is European or Asian one, Co.'s customers can find full range of products for their cars as well as all the necessary tools and garage equipment. Besides spare parts distribution, which is the core business of Co., Co. is also an exclusive distributor of legendary motorcycle brand “TRIUMPH” in Poland (via motorcycle distribution network, called Inter Motors) and distributor of spare parts and accessories for other motorcycle brands.
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.
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.