Taaleri: Strong investment operations boosting Q2 – underlying earnings well in line with our estimates - Nordea
Taaleri reported Q2 EBIT of EUR 17.8m, coming clearly above Refinitiv consensus at EUR 8.3m. We note Taaleri’s announcement of carry from Forest Fund III and gain from project development portfolio that might not be fully reflected in the consensus. In addition, the company made positive EUR 3.3m positive fair value change from Turun Toriparkki. Based on segment reporting, Q2 total income was EUR 26.3m, 32% above our estimate. Recurring revenues were EUR 9.9m in Q2, 1% above our estimate.
Fair value changes of investments were EUR -0.1m in Q2, while we had anticipated EUR 1.0m. Investment operations income of EUR 15m came well above our estimate of EUR 8.8m, driven by higher investment operations income in all segments. The company booked EUR 1.5m of carry in Q2 (we modelled EUR 1.4m). Private asset management EBIT came 1% below our estimate despite 6% beat in total income. Cost base in Renewable energy was higher than we had anticipated, while other private asset management cost were below our estimates. Private asset management recurring revenues came 1% below our estimate while due investment gains, total income came 6% above our estimate. Garantia’s loan losses continued at a low level (3.8%) while insurance service revenue was up 7 y/y to EUR 4.8m, while we had EUR 4.9m. Insurance service expenses were up 50% y/y.
Combined ratio continued at a strong level and was 27.1% in Q2 (24.3% in Q1). Solvency was at 260%. Private asset management AuM was up 5% q/q to EUR 2.6bn (EUR 2.4bn in Q2 2022), 2% below our estimate. SolarWind III had its first closing in Q2 with EUR 286m of commitments and the company expects continue strong demand due to significant number of investors in active due diligence. Taaleri targets EUR 700m of commitments for SW III (we have modelled EUR 700m in 2025E). On initial take, we expect consensus to make slightly positive underlying estimate revision despite somewhat higher costs based in Renewable energy. We have a fair value range of EUR 10.1-11.6 per Taaleri share.
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