GTT (AO) | Buy | First orders for the three tank design solutions

研报英文原文证据摘录

GTT (AO) | Buy | First orders for the three tank design solutions

GTT Buy | Target Price: EUR225.00

Company description Management

GTT is a French engineering company specialised in containment systems for the Philippe Berterottiere, CEO & Chairman

transport and storage of LNG, with key proprietary technology (Mark and NO Thierry Hochoa, CFO

technologies). The group provides access to its technology to major shipyards Key shareholders

and offers services to clients (engineering, support, maintenance). The group has Free float 94.00%

held a 100% market share since 2016. CDC 4.00%

Investment case Valuation methodology

Fundamentally, GTT is a robust company with key technology, a We use three main valuation methods: 1) a dividend yield model

strong balance sheet and backlog, and positive FCF. Backlog over 2026-30E pointing to a 4.5% yield (excluding extra

provides visibility until 2028E (EUR1.5bn+ on core business). dividends), 2) an SOP valuation for the three business units:

We reiterate that around 80-85 LNGC will be delivered per year Royalties at 15x EV/EBITDA 2026-30E, Services at 10x EV/EBITDA

by 2030. Backlog provides visibility until mid-2028 and we then 2026-28E, and Digital at 13x EV/EBITDA 2026-28E, (Elogen at 0)

see high demand driven by LNG growth and the replacement and 3) a FCF yield model, pointing to a 5.5% FCF yield over 2025-

market. Focusing on the replacement market, recent market 27E.

developments will accelerate vessel scrapping, in our view. Risks to our rating

Shareholder remuneration is likely to be very strong in the Construction of some LNG projects is facing delays, and we

coming years. We see a c. EUR10 dividend per year by the end of cannot rule out further delays. This could impact the LNG cargo

the decade.