First Berlin – Energiekontor AG Research Update (03/09/2019)

First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 22.90 to EUR 22.60.

Energiekontor's H1 EBT amounted to €4.7m and matched the previous year's figure. The challenging German onshore wind market resulted in weak project development activity. This was however more than compensated by the power generation segment. Again, Energiekontor's business model, which combines volatile project development with stable power generation, showed its strength. Energiekontor reiterated 2019 guidance (moderately higher EBT y/y) and expects significantly better results from 2020 on. The foundation for the improvement in earnings has already been laid. In February, the company signed a power purchasing agreement for an 85 MW solar park to be built in 2020 in Germany. A wind project delay causes us to lower our 2019E forecast slightly. Given that Energiekontor was not awarded projects in the German onshore wind tender in August and that approval procedures remain slow, we trim our 2020E forecast but still expect strong growth. An updated sum of the parts valuation yields a €22.60 price target (previously: €22.90). We reiterate our Buy rating.