WOOD Flash – Famur: 2019-23E strategy – wrap-up
Today (26 September), Famur announced its strategy for 2019-23. We see the strategy assumptions and goals as supportive for our positive call on the name (BUY, PT PLN 6.50). Firstly, the guidance of an average dividend payout ratio of 75% is in line with our forecasts, presented in our initiation report (Poland_Industrials_Famur_Initiation of Coverage_20Aug2018.pdf), and broadly in line with the market consensus. Nonetheless, we appreciate the formal declaration of the dividend policy. Secondly, we see the PLN 2.5-2.7bn top-line forecast for 2023E as positive, as it is above the PLN 2.3bn pencilled into our model. We note, however, that c.PLN 0.1-0.2bn is to be attributed to the acquisition of a company operating in Hard Rock Mining – HRM (being considered by Famur; we assume no M&A). Thirdly, we also see the focus on the diversification of the revenues base, the foreign expansion plans and obtaining above 25% of recurring revenues as positive. As a risk, we see the potential acquisition of a company operating in HRM, especially in the US or Canada, which are competitive markets, in our view.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.