WOOD Flash – ANY PLC: 4Q17 results review – higher card production sales mitigated by higher tax and minorities
ANY reported its 4Q17 results yesterday (5 March). We see the revenue beat of 6.4% vs. our estimate as positive, driven mostly by card production sales in export. We see an increase of 0.44ppts yoy in the EBITDA margin for the quarter, +1.57ppts vs. our estimate, given that the increase in materials and personnel expenses were lower than the gain in card production. As 47% of sales came from the export markets this quarter, against our expectation of 43%, we see an increase in tax, almost doubling yoy, as well as an increase in minorities, driving the net income in line with our estimate, at HUF 280m for the quarter. Overall, we see the results dynamics as neutral.We note that ANY is the leading security printing company in Hungary, with significant operations in Romania and Bulgaria. We like ANY for its: i) strong revenue base, resilient over the economic cycle; ii) diversification across business lines; iii) increasing exposure to markets outside Hungary; iv) EBITDA margin stability; and vi) strong dividends profile. However, in our view, the company is fairly valued, with the industry facing a long-term threat due to digitalisation.
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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