Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: Industrials
Delignit manufactures ecological materials, mostly based on European hardwood, which makes them CO2 neutral in their lifecycle. Within the automotive division (85% of revenues), the company focuses on light commercial vehicles (cargo bay protection and cargo securing systems), motor caravans (interior furnishings such as cabinet systems) and passenger cars (trunk covers). FY20 results so far have been affected by the impact of COVID-19 on the automotive sector. Longer term, Delignit will benefit from expected growth in light commercial vehicles, geographical expansion and broadening its product offering.
Delignit |
Ecological hardwood-based products
|
Industrials |
Deutsches Eigenkapitalforum 2020
30 October 2020 |
Share price graph
Share details
Business description
Bull
Bear
Analyst
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES. |
||||||||||||||||||||||
Delignit manufactures ecological materials, mostly based on European hardwood, which makes them CO2 neutral in their lifecycle. Within the automotive division (85% of revenues), the company focuses on light commercial vehicles (cargo bay protection and cargo securing systems), motor caravans (interior furnishings such as cabinet systems) and passenger cars (trunk covers). FY20 results so far have been affected by the impact of COVID-19 on the automotive sector. Longer term, Delignit will benefit from expected growth in light commercial vehicles, geographical expansion and broadening its product offering.
Recovery expected from H220
After a good start to 2020, Delignit’s performance was hit by the impact of COVID-19 as many customers temporarily closed their plants. This resulted in a 20.6% decline in H120 revenues to €25.6m and 35% lower EBITDA at €1.6m. Delignit’s guidance for FY20 is revenues in the range of €51–56m, which implies at least flat revenue in H2 vs H1.
Expected growth in eLCV and motor caravans
Delignit continues to expand in the light commercial vehicle (LCV) segment, with its first 10-year order for a system floor solution for a new electric LCV (eLCV) due to start in 2022 (total contract value more than €15m). According to IDTechEx, the eLCV segment represents 3% of the total LCV segment and is expected to increase to 23% by 2030, offering strong growth opportunities for Delignit over the next few years. A relatively new market segment for Delignit is the motor caravan market, which currently benefits from the COVID-19 pandemic as it is one of the safest ways to take a holiday. According to the Caravaning Industry Association, CIVD, motor caravan sales showed growth in Germany of 34% y-o-y year to date. Delignit’s long-term ambition of generating revenues in excess of €100m and an EBITDA margin of at least 10% still stands, although COVID-19 could result in a delay in achieving these targets to beyond 2023.
Valuation: Assuming strong recovery
Consensus assumes that in FY21 Delignit will have fully recovered from the temporary dip in EBITDA in FY20. It is valued at a premium to its peers, which suggests that investors are confident in management’s ability to deliver growth over the next few years on the back of the post COVID-19 economic recovery.
|
Consensus estimates
Source: Delignit, Refinitiv |
|
||||||||
|
||||||||
Research: TMT
4imprint’s trading update indicates some encouraging signs, albeit within continuing general caution around the impact of COVID-19 on the US economy. Average order value is increasing as the proportion of apparel in the mix rises, with overall weekly revenue over the last four weeks around 65% of prior year. This is in line with the assumptions underlying our model and there are no changes to our forecasts. The group has a strong balance sheet, with $40.1m of cash at end October (lease debt only). We continue to view 4imprint as a high-quality investment proposition.