ElvalHalcor (AO) | Buy | Back to stronger profitability despite rising uncertainty

Research evidence excerpt

ElvalHalcor (AO) | Buy | Back to stronger profitability despite rising uncertainty

ElvalHalcor Buy | Target Price: EUR4.00

Company description Management

ElvalHalcor is a European leader in the manufacturing of non-ferrous semi- Nikolaos Carabateas, GM Aluminium Segment

finished products. The group was formed through the merger of two Greek Panos Lolos, GM Copper Segment

companies, Elval (an aluminium specialist) and Halcor (a copper specialist). It Spyridon Kokkolis, CFO

sells 89% of its volumes in Europe (only 6% in Greece) and has strong exposure Key shareholders

to the packaging business (43% of volumes sold). Supported by its pass-through Free float 15.20%

business model, the group has limited exposure to metal price volatility. Viohalco 84.80%

Investment case Valuation methodology

ELVAL stands out as a leading player in the global aluminium Our TP is derived from a DCF (9.6% WACC, 1.5% LT growth) value

(number two aluminium rolling plant in Europe) and copper of EUR3.83 and a Peers approach (EV/EBITDA 2026 and PE 2026)

(number one copper tubes producer in EMEA) semi-finished of EUR3.14.

products industry. This implies a valuation of 10x P/E 2026E.

Supported by its best-in-class production facilities and its ability Risks to our rating

to expand its business, ElvalHalcor should continue to benefit Deterioration of the macroeconomic environment.

from the favourable growth momentum in packaging (43% of its Halt in the deleveraging process.

volumes) and gain market share. Inflationary pressures (mainly energy prices).

Over the medium term, the group’s exposure to Europe (86% of

its volumes) and more cyclical industries (c. 38% of its volumes)

positions the stock as a key beneficiary of a European recovery.

Catalysts

Improvement in the economic environment in Europe.