SRH AlsterResearch AG Initiation: KION Group AG - What e-commerce & global supply chains call for

Kion Group AG (Initiation)

Industrial Goods & Services

MCap EUR 11.9bn

BUY, PT EUR 110.00 (+22% potential)
Research update

The software-driven, fully automated warehouse: That’s what e-commerce calls for and what supply chains are globally shifting to. Kion has taken the leading position in the world market of automation technology for intralogistics. Per March 31, order backlog of its high-end automation solutions (brand: “Dematic”) has been up 40% from its level at the end of 2019. The trajectory is upwards, with installation projects currently accounting for 80% of Dematic’s order volume (vs. 20% high margin service and aftersales business). 40% of Dematic’s order volume are pure play e-commerce. In Q1 2021, Kion’s conventional core business – offering forklift and warehouse trucks and related services – has bounced up, leading out of the trough it was stuck to throughout 2020. Order intake of that segment (Industrial Trucks & Services / IST), set a new record high in Q1 2021, while utilisation and margins have shown an impressive recovery.

 

For 5 current investment ideas, check our Weekly Screener. This week we are looking for stocks that offer growth at a reasonable price.

 

Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de