Thrace Plastic company feature image

Thrace Plastics

ASE: PLAT

€88.8m market cap

€2.03 last close

Thrace Plastics is an established international producer of Technical Fabrics (73% of FY18 gross revenues) and Packaging (23%). Each division uses a number of manufacturing processes and produces a wide range of products from polymer materials, serving a diverse range of end-markets.

Investment summary

Thrace is an international producer of technical fabrics and packaging that is moving into a 7.9% EPS CAGR phase to FY21 following recent capex programmes. It is well positioned to meet the needs of established markets and sectors in western Europe and the US, as well as faster growing eastern/southern European markets. H119 results (19 September) delivered revenue growth +3.6% but EBIT was c 11% below the prior year level after what appeared to be a tougher Q2. The Packaging division did make modest revenue and EBIT progress for the period but a 130bp gross margin reduction in Technical Fabrics (to 18.2%) affected profitability. Weaker demand and competition in certain US and UK segments were noted as the primary influences here. Based on the H1 performance and management expectations for a slight y-o-y improvement in revenue and operating profit in H2, there is some inferred softness in our estimates which are under review.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 318.5 30.1 13.8 24.1 8.4 3.1
2018A 322.7 29.0 11.5 21.0 9.7 3.8
2019E 335.4 32.4 13.3 21.4 9.5 3.1
2020E 346.0 33.4 14.4 23.7 8.6 3.0
Industry outlook

Thrace manufactures a wide range of products that are used in a variety of sectors, ranging from construction/infrastructure to horticulture and food packaging primarily in Europe and the US. Management’s high-level financial objective is to ‘pursue profitable growth using two primary levers: increased capacity and value capture.

Last updated on 11/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 74
Forecast gearing ratio (%) 50
Price performance
%
1m
3m
12m
Actual (1.0) (6.9) 1.5
Relative* (1.0) (8.6) (23.7)
52-week high/low €2.5/€1.8
*% relative to local index
Key management
Konstantinos Chalioris Chairman & CEO
Dimitris Malamos CFO
George Braimis COO