H & R (1K) | Buy (vs Reduce) | Flooded by cash

研报英文原文证据摘录

H & R (1K) | Buy (vs Reduce) | Flooded by cash

#EarningsPreview #RatingChange

Release date: 15 July 2026

Company research

ESG profile Buy (Reduce)H & R

Germany | Chemicals Beta Profile: MCap: EUR229.3M

Target Price: EUR7.50 (3.60) Change in TP: 108.3 % Bloomberg: 2HRA GR Reuters: 2HR.DE

Current Price: EUR6.16 Change in Sales: 5.9% 26E/0.4% 27E Free float 22%

Up/downside: 21.8% Change in Adj EBIT: up nm 26E/37.0% 27E Avg. daily volume (EURm) 0.1

YTD abs performance 43.6% Market data: 14 July 2026 Change in Adj. EPS: up nm 26E/up nm 27E

52-week high/low (EUR) 6.30/3.97

Flooded by cash Price performance

Why this report?

On 29 June, H&R published a positive profit warning, saying that the low end

of its guidance range for FY-26 could be reached or exceeded in H1-26. The key

driver is higher demand and higher prices for certain products. We know that

current margins are not sustainable. But the huge cash generation in Q2 and

eventually in Q3 should massively reduce debt. Eventually, a dividend is on

the cards too. We lift our EPS 2026E-2028E estimates by 2,260%, 136% and

92% as we lift our DCF-derived target price from EUR3.60 to EUR7.50. Thus,

we upgrade the stock from Reduce to Buy.

Key findings

H&R published an ad hoc release on 29 June.

The company thinks that EBITDA is likely to be at EUR85m or even higher in H1-26. FY to 31/12 (EUR) 12/26E 12/27E 12/28E

We now believe EBITDA will be +274% YOY to EUR66.5m (previously: EUR26.5m) in Sales 1,331 1,294 1,311

EBITDA adj. 144 78 83

Q2-26, well above the EUR21.9m level in Q1-26. EBIT adj. 92 27 32

The key drivers were higher demand and pricing, caused by the conflict in the Net profit adj. 57 11 15

Middle East. Net financial debt 23 9 -5 FCF 48 14 13

Deconstructing the forecasts EPS adj. and ful. dil. 1.52 0.30 0.40