Original-Research: Delticom AG - from Quirin Privatbank Kapitalmarktgeschäft
Classification of Quirin Privatbank Kapitalmarktgeschäft to Delticom AG
A strong final quarter is expected Following a solid Q3 in terms of topline revenue and a satisfactory start to the winter tire business at the beginning of the fourth quarter, Delticom increased its revenue forecast for the 2025 financial year and now expects revenue to be in the range of EUR 490m to EUR 510m (QPe: EUR 501m; previous company forecast: EUR 470m to EUR 490m). With TTM revenue at EUR 506m, we do not consider this uplift to be surprising or unachievable. In recent days, demand is also likely to have been positively influenced by weather conditions. Management continues to forecast operating EBITDA in the range of EUR 19-21m. Looking at the last Q4 of previous years, a strong Q4 is not surprising, so we consider the forecast to be achievable. After nine months, net income stood at EUR -3.2m, so we expect net income for this year to be slightly below last year's level. The company has shown that despite poor consumer sentiment in Germany, top-line growth is continuing, with price effects most likely supporting sales growth. We expect sales to continue to rise moderately in the coming years, with a focus on stable earnings development and possible earnings increases. Noteworthy, the EU has launched a second punitive tariff procedure against passenger car tires from China: In addition to the ongoing anti-dumping procedure, there is now an anti-subsidy procedure due to possible state aid. Both could result in punitive tariffs, which would likely make Chinese tires in the EU significantly more expensive and scarce. Applying our ROE/COE valuation approach, we derive a new fair value of 3.80 (3.90), therefore we confirm our BUY rating. You can download the research here: DELTICOM_AG_20251201 For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2238056 01.12.2025 CET/CEST
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