Thrace Plastic company feature image

Thrace Plastics

ASE: PLAT

€91m market cap

€2.08 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. FY18 end-product polymer tonnage sold was c 120k and we see this growing to above 140k tonnes over the next three years. New capacity, higher value-added materials and product development all contribute to this scenario. Evidence of rising profitability, improving returns and cash generation/net debt reduction from the enhanced capital base would all represent positive markers after a dip in profitability over the last two years. Q1 results (20 June) contained a 6.4% revenue uplift y-o-y with both divisions ahead and broadly similar gross profit and EBIT.

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 8.6 3.2
2018A 322.7 29.0 11.5 21.0 9.9 3.9
2019E 335.4 32.4 13.3 21.4 9.7 3.2
2020E 346.0 33.4 14.4 23.7 8.8 3.0
Last updated on 19/09/2019
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 19/09/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 74
Forecast gearing ratio (%) 50
Price performance
%
1m
3m
12m
Actual (3.3) (4.6) (2.8)
Relative* (8.3) (7.9) (23.3)
52-week high/low €2.5/€1.8
*% relative to local index
Key management
Konstantinos Chalioris Chairman & CEO
Dimitris Malamos CFO
George Braimis COO