AlsterResearch AG Update: Wolftank-Adisa Holding AG - Strong rebound in sales

Wolftank-Adisa Holding AG (H1 results)   Industrial Goods & Services MCap EUR 53m BUY PT EUR 16.50 (old: EUR 18.00; +25% potential)   Difficult market conditions have left a mark in H1 numbers. We adjust our estimates and PT, and still think that any share price weakness could provide a good entry point into an exciting equity story.   Read

 

What’s it all about?

Wolftank posted H1/21 results showing a mix of strongly recovering sales (+58% yoy) but still lackluster earnings. The former is proof that Wolftank actually benefits from massive pent-up demand after the Covid-19 induced business disruption in 2020 but also structural demand in Wolftank’s key environmental business segments such as hydrogen and LNG filling stations as well as environmental remediation (soil and water). Nonetheless, the margin recovery looks set to follow with a time-lag as the company’s cost base is still burdened by several external factors. From today's perspective, the company is “very confident that it will achieve pre-pandemic business figures in 2021”. We reiterate our BUY recommendation albeit with a slightly lower PT of EUR 16.50 (old EUR 18.00) as we adjust our earnings forecast. Still, Wolftank remains an attractive opportunity to invest in strongly growing environmental themes.