Famur: Good direction, but waiting for solar results (stays HOLD)
We keep our HOLD rating on Famur, and have raised our price target (PT) to PLN 3.41/share (vs. PLN 2.94), offering 3% upside. The major reasons for our PT hike are the inclusion of the photovoltaic (PV) business in the company’s financials and the recent recovery in the coal price, supporting our view of the capex for the coal mines in 2022E and 2023E. Therefore, we have revised up our previous 2022-23E EBITDA forecasts by 37-65%. On the other hand, we note that, at this stage, Famur is at the beginning of building its PV business, so we prefer to take a more cautious stance. Moreover, Famur is trading at our 2022-23E EV/EBITDAs of 5.1-4.5x, 3% above/12% below its long-term averages, respectively. We believe that such a small discount does not command a BUY rating, at this stage.FAMUR SA is a Poland-based manufacturer of mining equipment and machinery. The main area of the Company's operations is manufacture of automated longwall systems enabling the exploitation of coal. The Company also specializes in design and production of equipment for underground mines and open pits, as well as bulk material handling equipment and machines for coal preparation plants. The Company's products portfolio includes electric and hydraulic shearers, roof support, hydraulic control system, conveyors and crushers. FAMUR SA is also engaged in the development of information technology solutions and management system for coal industry. The Company operates through subsidiaries, based in Poland, Germany and the Russian Federation. The Company's major shareholder was TDJ SA, with a stake 71.28%. On November 27, 2014 the Company acquired 76,69% of stake in FAMAK SA.
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.