MT Højgaard Holding: Successful turnaround now halfway through - ABG
Write-downs (~DKK 22m) overshadow a great Q2
We expect a high ~4% adj. EBIT margin for H2’21
No changes to ’22-‘23e; ~4% ’22e EBIT margin remains
MTHH delivered solid Q2 revenue of DKK 1,743m (10% vs. ABGSC and 9% vs. Factset consensus), but several negative write-downs during the quarter ultimately led to a gross profit of DKK 120m (-15% vs. ABGSC and -10% vs. cons.); EBIT (b.s.i) was DKK 21m (-40% vs. ABGSC and -46% vs. cons.). As expected, MTHH included the two major projects of Rønne Harbour (~DKK 300m) and the Nykredit HQ (Holm 8) (~DKK 1.6bn) into its order intake along with DKK 1bn in underlying orders for a total Q2 order intake of DKK 3,000m (-14% vs. ABGSC and -16% vs. cons.). We expected the momentum of DKK 1.5bn in underlying orders to have continued into Q2, but management sees timing as the key contributor and sees an uptick in activity in H2’21. We thus reiterate our FY’21e order intake of DKK 10bn (6% y-o-y), implying a H2’21e intake on par with H1’21. The gross margin was impacted by DKK 30m in negative net write-downs (vs. DKK 15m in H1’20) and a DKK 8m accounting loss from a property sale in the project development business to release capital for other projects. We have updated our order intake model on pages 3-4, and note a shift in composition towards building projects this past year, and continue to see high activity.
MTHH is trading at an EV/EBIT of 7.4x vs. the industry median of 10x. We cut the lower end of our FVR to DKK 165-290/share (170-290).
Länk till analysen i sin helhet: https://www.introduce.se/foretag/mt-hojgaard-holding/Equity-research/2021/8/mt-hojgaard-holding---successful-turnaround-now-halfway-through/
