Leroy Seafood (AO) | Hold | Q1 first take: Wildcatch beat, strong cost trend in Lerøy West (+)

研报英文原文证据摘录

Leroy Seafood (AO) | Hold | Q1 first take: Wildcatch beat, strong cost trend in Lerøy West (+)

Leroy Seafood Hold | Target Price: NOK48.00

Company description Management

Lerøy Seafood is Norway's third-largest seafood producer of Atlantic salmon, and Henning Beltestad, CEO

is a major operator within the wild catch segment after the acquisition of Havfisk. Sjur Malm, CFO

LSG has an 5-6% global market share within Atlantic salmon. The company is a Helge Singelstad, Chairman

first mover in adopting new farming technology (submerged cages) at scale. Key shareholders

Free float 57.00%

Austevoll Seafood 52.69%

Folketrygdfondet 5.00%

Investment case Valuation methodology

LSG has delivered a poor operating performance in recent years. We value LSG with a DCF, applying a WACC of 8.3% and a long-

It has made significant investments across the value chain, term growth rate of 2%.

including in new farming technology, which we expect to boost We also apply a P/E multiple approach on 2026-27 earnings.

the operating performance and thus margins on the back of Our two valuation approaches are weighted 50/50 to derive our

increased price achievement and volume output, and lower target price.

biological costs. Risks to our rating

Leroy's value-added processing segment should capitalise on Salmon prices underperform - as LSG is one of the most

increased volume output from the farming segment and achieve operationally geared company, it is sensitive to salmon prices.

higher earnings. Cost development is softer than expected.

Lerøy has a strong balance sheet, and the increased earnings A lower trout share offers a higher risk.

from its operating performance should boost its dividend

capacity going forward.

Catalysts

Supply fading and spot prices surprise on the upside.