EQS-News 161 0 Kommentare Report on CPH: Investor Day update - Seite 2

Well established network supported by state-of-the-art operations: CPH already has an operational presence in four out of the top five future pharma markets globally (in 2025e). The company has a direct sales presence in 85 countries and operates via local agents in >40 countries. It has state-of-the-art operations with five production sites spread across four continents. Of the five, the one in Brazil is expected to commence operations in 2Q22. The company is also at the forefront of innovation and has developed more than 10 innovative products since 1970. With such operational strength and a wide reach, the company stands to benefit from the ongoing development in the pharmaceutical market.

Growth to be balanced by sustainable approach: The Packaging division expects its mon-material blister systems to meet the requirements of the circular economy.

Valuation and conclusion
We value CPH using DCF and relative valuation techniques. Our intrinsic value of CHF 91.3 per share, which is similar to our previous target price (CHF 91.3), implying an upside of ~32% from current levels. For relative valuation, since the Group operates in three entirely different divisions, we compare each of CPH's divisions with different sets of relevant industry peers. We have employed three parameters - EV/EBITDA, P/S and P/E - to analyze the relative valuation of the Group. CPH currently trades at a P/S multiple of 0.9x (FY2021E), a significant 36% discount to the weighted average multiple of division peers.

The global economy is expected to recover gradually from 2021e with the IMF forecasting 6% growth in 2021. While this bodes well for the business in general, in the short-term, we expect the uncertainty to continue. Specifically, the Paper Division is expected to be under pressure due to an unfavorable operating environment. However, the Packaging and Chemical Divisions are expected to be the key beneficiary of a revival in economic activity and should offset the expected weakness in the Paper Division to some extent. Specifically, we believe the Packaging Division to emerge even stronger in the ongoing economic revival as it has all positive levers in place to capture upcoming opportunities. Operations aside, management's focus on offering sustainable solutions and the simplification of the corporate structure should improve investor sentiment going forward. We remain encouraged by management's commentaries, which did not include any changes to the mid-to-long-term goals. Moreover, we expect the group-level cost optimization initiatives to offer support to the company's stock price.

Additional features:

File: CPHN_Investor Day Update_18.6.2021

End of Media Release