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- Aspo - Guides EBIT at the range’s low-end
Aspo - Guides EBIT at the range’s low-end
Kauko plays a minor role in the sum-of-the-parts analysis
According to the plan, Kauko’s energy solutions business will be either sold off or terminated, while the offering for mobile knowledge work as well as Kauko’s administration will be restructured. The energy solutions business generates approximately one third of Kauko’s revenue. It was expected that Aspo might take more concrete measures regarding Kauko as the subsidiary has not been able to reach its targets. We recognize the announced EUR 5m goodwill impairment in Kauko’s Q4 EBIT.
We expect ESL’s acquisitions to lift 2019 EBIT to EUR 25m
We make slight adjustments to ESL’s estimates, reflecting the longer learning curve for the new LNG vessels to reach their full operational efficiency (Q4 EBIT EUR 1.2m lower than previously expected, 2019 EBIT lower by EUR 0.4m). Nevertheless, the new LNG vessels and the acquisition of AtoB@C are expected to be major contributors to next year’s EBIT growth. Our EBIT estimates for Telko and Leipurin remain unchanged.
Lower peer multiples cut our target to EUR 9.25 (EUR 10)
Overall, we don’t see any significant changes in Aspo’s operations. We expect Aspo’s 2018 EBIT at EUR 21.9m (including the EUR 5m impairment of Kauko). We retain our HOLD rating but decrease our target price to EUR 9.25 (EUR 10). The change in our target price mainly reflect’s Telko’s lowered peer multiple, while the write-down of Kauko figures only as a minor loss in the sum-of-the-parts valuation.