Original-Research

MPH Mittelständische Pharma Holding AG (von GBC AG): BUY

Original-Research: MPH Mittelständische Pharma Holding AG - von GBC AG

Einstufung von GBC AG zu MPH Mittelständische Pharma Holding AG

Unternehmen: MPH Mittelständische Pharma Holding AG

ISIN: DE000A0L1H32

Anlass der Studie: GBC Managementinterview

Empfehlung: BUY

Kursziel: 5.10 Euro

Kursziel auf Sicht von: End FY 2016

Letzte Ratingänderung:

Analyst: Cosmin Filker

With the publication of preliminary results for the preceding financial

year 2015 MPH Mittelständische Pharma Holding AG announces sales growth to

EUR264 million (previous year: EUR219.25 million). For the first time MPH

reports as an investment entity according to IFRS 10. The preliminary IFRS

net income from the transitional consolidation reporting amounts to about

EUR87 million (previous year: EUR8.45 million). The preliminary IFRS earnings

per share totalled approximately EUR2 (previous year: EUR0.19).

The analyst of GBC, Cosmin Filker, has talked to the Management Board

member, Dr. Christian Pahl, about the development in 2015 as well as the

future potentials.

GBC AG: Dr. Pahl, with sales of EUR264 million a growth of about 20 % was

achieved. What are the key factors for this success?

Dr. Pahl: Our investments HAEMATO AG and M1 Beauty AG expanded their market

share. This shows the customer satisfaction in these areas.

GBC AG: In the preceding financial year MPH generated a profit of 87

million Euro. How was that possible?

Dr. Pahl: In the last years MPH has evolved into an investment entity.

Shares in HAEMATO were sold. Shares in CR Capital Real Estate AG were

bought. The M1 Beauty AG was founded and was established as a market leader

in important segments of the aesthetic medicine and plastic surgery. With

the financial statements of 2015 we change over to an accounting as

investment entity according to IFRS 10. The high profit is a combined

result of three components.

The first component is the result of the operative business development.

The growth in sales of about 20 % reflects the customer satisfaction and an

increase of market shares. Our investments are facing intense competition

that they meet by focusing continuously on customers.

The second component is the increase of hidden reserves. In the interim

report 2015 we have already indicated the high reserves in the share

portfolio. With the annual report 2015 we are taking the consistent step of

changing-over our accounting as investment entity. In the balance sheet of

MPH, financial assets are now valued at their current stock market prices.

At the end of the year this figure amounts to EUR150 million.

The third component is the deconsolidation of non-controlling interests

from MPH equity recognized through statement of income. In prior years MPH

achieved a profit of EUR16 million from the sale of shares in HAEMATO. Within

the scope of the common full consolidation of a controlled company, it was

not allowed to recognize this profit in the statement of income, but had to

be recorded directly in equity, not affecting net income. Within the

consolidated equity capital non-controlling interests were reported to the

amount of EUR25.96 million. The profit contribution of EUR16 million from the

deconsolidation of these non-controlling interests relates to other

periods.

GBC AG: What profit are you expecting in 2016?

Dr. Pahl: We expect a high profit in 2016. In the first quarter 2016 the

operating development of our investments is promising. So it would be

natural, when the share prices reflect this development.

GBC: Equity rose to about EUR139 million. The investments valued at EUR150

million at the end of the year. What was the sum of assets and to which

amount you use borrowed capital?

Dr. Pahl: The balance sheet sum of MPH amounted to about EUR151 million.

Borrowed capital was around EUR12 million. Thereof about EUR10 million are

interest-bearing bank loans with midterm maturities and interest

obligations of approximately 3.5 %.

GBC AG: In the year 2009 Group sales totalled EUR62 million and group equity

was EUR43 million. In the following 6 years sales level increased to EUR264

million and equity rose to EUR139 million. Additionally a steady dividend

strategy was followed. Which recommendation will you make for the vote

regarding the dividend at the next general meeting?

Dr. Pahl: First, I would like to mention, that the company issued so called

bonus shares to the shareholders in a ratio of 25:1 in connection with a

capital increase from company funds. As reserves were converted into share

capital, equity remained unchanged. Nevertheless, shareholders could

benefit, because these 1.6 million shares with a par value of EUR1.6 million

had a market value of about EUR5 million. Further it should be noted, that in

the last 6 years MPH payed dividends to their shareholders to the amount of

EUR36 million.

We know from our discussion with investors that on the one hand dividend

payments are appreciated. On the other hand we notice comments from

investors that they prefer to let the money work within the company, to

increase the company value. I assume, that the shareholders will continue

to resolve a dividend. However, in the healthcare market there are still

existing attractive investment opportunities. Hence, I recommend that the

company constantly maintains sufficient scope for investments.

GBC AG: Dr. Pahl, thank you for talking with us.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13633.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

[e-mail]

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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Rating: BUY
Analyst: GBC