reports
- Julien Onillon
SII: One year ahead of expectations
We were cautious. We were afraid that the turnaround of the engineering and technology consulting group (ETC) would take time because of its exposure to aerospace and transportation. The recovery has been spectacular. Overall demand for engineering consulting in France has returned to its pre-crisis level and the group has continued to show exceptional growth in Poland. Most importantly, over the past 12 months, the company has managed to report earnings comparable to 2019!
- Julien Onillon
Eurobio Scientific: Towards 100 million euros of net cash at the end o...
A few weeks ago, the leading independent distributor of PCR tests in France reported record results for its fiscal year 2020, but as expected the company was cautious for the current year. As vaccination progresses rapidly among the French population, the need for PCR testing will become much less strong and the company's sales will decline. Nevertheless, as at today, COVID's activity remains high and the company continues to generate significant cash flow, with net cash expected to be clo...
- Julien Onillon
Boostheat: Capital increase to avoid default
A little less than a year ago, Boostheat's Chief Innovation Officer and co- founder, left the company. Today, the second co-founder, the CEO was let go. One would have thought that with nearly 15% of the capital he could have kept his position but Holdigaz, which holds nearly 32% of the capital, must have decided otherwise. We can understand the Swiss gas distributor. Holdigaz has already lost millions of euros with Boostheat, and will have to recapitalize the company to avoid losing its e...
- Julien Onillon
ESI Group: Recovery but uncertain growth
At the beginning of the Covid crisis, ESI's management was very confident in its prospects and had not touched its costs much, convinced that it was on a good growth trajectory. In the end, the group's turnover will fall by more than 9% in 2020 and the company will decide to reduce its expenses. This allowed the company to remain profitable and to post results that were slightly better than we expected (a drop of only 52% in operating profit). This was the right thing to do but the group d...
- Julien Onillon
Herige: The visible effects of a slow and deep restructuring
Like many others, the building materials distributor in western France has been hit hard by the lockdown and the Covid crisis. In 2020, its turnover contracted by nearly 5% on a like-for-like basis. However, the crisis and this downturn did not prevent Herige from recording an increase of more than 40% in its net income. This very good performance is not exceptional but the result of a slow and profound restructuring of the company.
- Julien Onillon
Claranova: A wake-up call
The net profit of 8.5 million euros published for the first half of fiscal year 06/2021 was not a surprise. Claranova had already communicated the doubling of its operating profit at the time of the turnover publication. However, the company's share price has risen by more than 20% in two sessions. Some people have suddenly discovered the strong profit and growth dynamics of the world leader in photo printing from mobile and have begun to question its undervaluation.
- Julien Onillon
HighCo: Dividend yield and accelerated digitization
A month ago, we noted the intention of the French specialist in operational marketing and discount coupons to increase its dividend payout. We did not expect that the company would decide to set its dividend at a level 70% higher than before the crisis, nor that it would aim to increase it again next year. On the other hand, we did expect the launch of new digital marketing products. We were not disappointed on this point either.
- Julien Onillon
- Julien Onillon
ESI Group: Stratospheric multiples
Who says ESI Group is overvalued? The share price of the small software company specializing in virtual prototyping has double since the bottom of the Covid crisis, but its large competitors in Europe and the US performed as well, or even better. ESI Group is trading at just over 21x its EBITDA 2021 but Dassault Systèmes, is valued at 31x its EBITDA. On the same multiple, its American competitors Ansys and Altair are respectively trading at 41x and 111x. The PLM and virtual prototyping sof...
- Julien Onillon
Claranova: Lower growth, higher profit… for once
The fourth quarter is the most important of the year. During this period, Claranova realizes on average 40% of its annual sales. In 2019, the group invested heavily in marketing and took full advantage of the Christmas and New Year holidays (+19% on a like-for-like basis). This time, in a very uncertain context, management has been much more prudent in its spending. As a result, sales grew by only 6.5% on a comparable consolidation scope basis over the quarter. But there is good news: profits do...
- Julien Onillon
HighCo: Increased dividend pay-out
The French specialist in operational marketing and discount coupons saw its gross margin decline by 7.1% on a like-for-like basis in Q4 2020. This decline (gross margin was down only 2.1% in Q3) was expected and foreseeable given the new lockdown over the period. Nevertheless, it remained bad news. On the other hand, the sharp upward revision of the operating margin and the announcement of a significant dividend were not expected. This confirms our strong conviction about the company.
- Julien Onillon
Eurobio Scientific: Mutations that perpetuate value
As expected, the first distributor to market a Covid-19 test in France reported exceptional turnover. Eurobio doubled its sales in the second half of the year compared to the first half and more than tripled its revenue over the year 2020. The results of the distributor of specialized in vitro diagnostic products should be equally exceptional in 2020. From then on, and as the health crisis is brought under control, they will gradually decline and return to "normal" levels. However, the new norma...
- Julien Onillon
Exel Industries: Massive leverage effect
The agricultural equipment market is a cyclical market that is fundamentally correlated to the prices of agricultural products. This market has been declining since the years 2012/2013 and reached a new low point in 2020. Exel Industries suffered throughout this period and recorded its first losses last year. But the group has also restructured. Its recovery is today spectacular.
- Julien Onillon
SII: It will take time despite Poland
The second half of the year for the engineering and technology consulting group (ETC) will be marked by a clear turnaround in the accounts. Business continues to grow at a high rate in Poland and has recovered in all other locations. The management is confident in the group's fundamentals and in the promising dynamics of the digital transformation. However, 2021 could be a disappointment.
- Julien Onillon
Derichebourg: Mid-cycle valuation
Even better than we expected, the family company specializing in the recycling of ferrous and non-ferrous metals (Environmental Services) and in business services (cleaning, temporary employment services, etc.) has resisted the COVID-19 crisis particularly well. In a favorable stock market context, investors finally took note of this performance and strongly revalued the share. However, the cyclical rebound has only just begun.
- Julien Onillon
HighCo: Focused
The reopening of shops in France, which in the end was earlier than expected, should enable the French specialist in operational marketing and discount coupons to achieve its 2020 guidance and to envisage a clear rebound in activity in 2021. This is excellent news, but our BUY conviction goes far beyond the excellent management's handling of the crisis. HighCo is on our list of convictions because the company is largely undervalued, has a certain speculative character but above all is carr...
- Julien Onillon
Boostheat: It could have been a great news...
The announcement of a new environmental regulation for new buildings by the French government (the RE2020) has led to a spectacular rise in Boostheat shares. From the summer of 2021, the RE2020 will require new individual houses to emit no more than 4 kg of CO2 per m2 per year. This threshold will effectively exclude conventional gas heating systems. Hybrid boilers such as the Boostheat.20, which combine a condensing gas boiler and a heat pump, meet this new standard and should therefore s...
- Julien Onillon
Exel Industries: Stronger than expected
The rebound was announced, but was to be modest. It was much stronger than expected. Over the last quarter of its fiscal year (the third quarter of 2020), the agricultural equipment group's sales rose 13.1% y-o-y (up 7.7% at constant exchange rates and comparable perimeter). This increase thus limited the decline in sales to just 2.9% over 12 months. This excellent momentum leads us to revise upwards our earnings estimates for the financial year 09/2020 and reinforces our BUY conviction in...
- Julien Onillon
Eurobio Scientific: Exceptional margins
We were cautious. We had only forecast a tripling of Eurobio Scientfic's EBITDA over the first half of 2020. The small French distributor of specialized in vitro diagnostic products quintupled its EBITDA over the period and achieved a record net profit of EUR 25.7 million. This performance is clearly exceptional. It should nevertheless be repeated in the second half of the year and continue in the first part of 2021 due to the resurgence of the Covid-19 epidemic.
- Julien Onillon
Claranova: Growth over profit... for the time being
Claranova published disappointing results. As we expected, the group recorded a 32% fall in operating profit for its financial year ending at the end of June. Nevertheless, over the period, taking advantage of an exceptional good performance in the mobile photographic printing activity during the confinement and the acquisition of Personal Creations, a company selling personalized gifts, the group recorded a 56% increase in turnover. Claranova clearly continues to favor growth over profit....
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