Original-Research: Electronics Line 3000 Ltd. - von BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG
Aktieneinstufung von BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG zu Electronics Line 3000 Ltd.
Unternehmen: Electronics Line 3000 Ltd. ISIN: IL0010905052
Anlass der Studie: Basic Report Update Empfehlung: Kaufen seit: 12.04.2012 Kursziel: 1,45 Euro Kursziel auf Sicht von: 12 Monate Letzte Ratingänderung: 22.11.2011, vormals Neutral Analyst: BankM - biw AG
Basic Report Update: Turnaround achieved, subdued outlook
During fiscal year 2011, Electronics Line 3000 Ltd. (ISIN IL0010905052, Prime Standard, ELN GY) has booked revenues amounting to $ 24.2 Mill. reflecting a decrease of 10% compared to $ 26.7 Mill in 2010. This cutback is due to the termination of low-margin products, to an order backlog in H2 and to the sale of the Company's UK subsidiary ESP in November 2011. During the reporting period, the Company focused on the development of new products [CommPact (launched in Q3/2011) and iConnect (launched in April 2012)], on the reorganization of the sales structure, and on streamlining the overall cost structure, e.g. through outsourcing to China.
Synergies now become visible on all operating levels: gross margin improved by 3.5%-age points to 34.8%. Both EBIT and Net Profit turned positive (first time since 2006). Cash flow from operations has significantly improved albeit is still slightly negative at T$ 255. Given the positive cash flow resulting from the divestiture of the UK company liquid funds increased by T$ 700 to $ 1.7 Mill.
Clearly, the loss of the G4S Norway is a setback for ELN's operations (G4S Denmark is not affected). Considering an estimated contribution to sales of ca. $ 4 Mill. together with ca. $ 6 Mill. previously attributable to ESP, we perceive the 2012 guidance realistic and compatible with our previous forecast of $30.2 Mill.
In August 2011 and in March 2012, the Company announced the signing of an agreement with a new distribution partner in Poland and in Italy, respectively.
Based on the recent developments, we update our valuation. We calculate a fair value of EUR 1.45/share and rate the stock as 'Buy'.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/11302.pdf Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden http://www.bankm.de/webdyn/141_cs_Research%20Reports%20Disclaimer.ht ml.
Kontakt für Rückfragen BankM - Repräsentanz der biw Bank für Investments und Wertpapiere AG Dr. Roger Becker David Szabadvari Mainzer Landstraße 61, 60329 Frankfurt Tel. +49 69 71 91 838-46/48 Fax +49 69 71 91 838-50 www.bankm.de roger.becker@bankm.de david.szabadvari@bankm.de
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ISIN IL0010905052
AXC0207 2012-04-12/18:36
