Bystronic Feedback from Conference Call with CEO / CFO

研报英文原文证据摘录

Bystronic Feedback from Conference Call with CEO / CFO

d) (CHF)

focus on more attractive niche markets with structural growth angles, such has

From To % ch Cons.

semiconductors and medtech. Bending machines were mentioned to be seeing solid 12/26E (12.16) (12.51) NM (9.42)

demand, while laser machines and automation solutions were lagging. The transition 12/27E (4.82) (4.88) NM 0.98

away from single machine vendors toward automated solution providers is taking longer 12/28E 2.08 2.06 -1 1.59

than expected, with a delay of 12-14 months according to management, and is further

delayed by conservative accounting method. Tommaso Operto, CFA

Analyst

tommaso.operto@ubs.com

Cash flow looks set to improve in H2

+41-44-239 2049

Operating FCF saw material deterioration from -CHF23m in H1 25 to -CHF56.6m. This

Sebastian Vogel, CFAwas in part driven by NWC drag from higher receivables and inventories. Receivables

however - linked to the Rofin acquisition - should normalize in H2 according to sebastian.vogel@ubs.com

management and no similar cash outflow in H2 is expected. Net cash overall came down +41-44 239 90 45

to CHF257m (around 62% of market cap), and already includes CHF42m cash out for

the Rofin acquisition. The company is seeing pricing pressure, mostly in Asia, but also in

Europe from established players. Yet, the mid-term EBIT margin target remains 5-7%

assuming top line recovers, as automation lines for instance are much less competitive

than single machines, and further supported by customers starting to demand more

premium machines again.

Valuation: Remain Neutral

Our price target of CHF140 is based on a three-stage DCF model, where we raise our

WACC by 20bps to 8.3%, but keep t-sales growth / t-EBIT margin unchanged at 1.5% /

3.0%.