First Berlin – aventron AG Research Update (01/04/2019)

First Berlin Equity Research has published a research update on aventron AG (ISIN: CH0023777235). Analyst Dr Karsten von Blumenthal reiterated his BUY rating and maintained his CHF 13.50 price target.

Abstract
aventron has reported final 2018 figures which matched the preliminary numbers. A leap in sales of 19% y/y at almost the same EBIT margin as in the previous year (30.7% versus 31.0%) demonstrates aventron's profitable growth. Despite the dilution resulting from the capital increase, earnings per share increased by 8% to CHF 0.27. The administrative board proposes a 9% higher dividend of CHF 0.25. For 2019, management expects sales of approx. CHF 102m at an EBIT margin of over 30%. An updated DCF model still yields a price target of CHF 13.50. Despite increased profitability and a significantly increased green power portfolio the share price has declined. We believe that this decline is fundamentally unjustified and confirm our Buy recommendation.