The QIX Germany was robust on Tuesday in view of weak ZEW data and recorded only slight losses to 14,310 points in the afternoon.
Despite good numbers, the quality index on Tuesday gave the GerresheimerShare unexpectedly fell significantly. It is currently trading at EUR 97.30 after its latest annual high. The specialty packaging manufacturer is counting on a renewed business recovery in the last quarter of the 2020 financial year. The management therefore sees itself on track with the annual targets despite a slight drop in sales in the first 9 months. The board of directors said today that the global Covid-19 vaccination campaigns are being prepared together with the vaccine manufacturers. Gerresheimer is currently building up additional capacities for the production of injection vials. As a result, up to 1 billion injection vials for corona vaccines are to be delivered over the next 2 years. The manager emphasized that there would also be a wide range of growth opportunities for the company. In the third quarter, the company’s sales fell by 2.6% to EUR 349.2 million due to lower demand for high-quality perfume bottles in the wake of the Covid pandemic. In the first 9 months, however, revenues totaled around 1 billion euros and were 0.7% below the previous year’s figure. With its packaging and system solutions made of glass and plastic, Gerresheimer is the clear winner of the virus crisis. In addition, the company is making strategic investments in the future, but still wants to continue to grow profitably in the pharmaceutical, healthcare and cosmetics markets.
Initially, however, management is expecting an extremely strong 4th quarter. Looking at the year as a whole, sales growth in the mid-single-digit percentage range with an operating margin of around 21% should therefore be expected. And in the following years 2021 and 2022, Gerresheimer continues to see growth rates in the mid-single-digit percentage range. On the stock exchange, however, the share is now valued at a 2021 PER of 21 in view of the recent soaring. The quality company convinces with an EBIT margin of 9% and a return on equity of just under 10%. The best prerequisites for a listing in the German Quality Share Index (QIX). Of the QIX Germany is a share index made up of the 25 best German shares. The 25 shares are selected according to a set and proven set of rules.
With a slight price increase of over 1% at times, the quality index is on Tuesday CANCOM-Share one of the biggest winners. It currently stands at 46.60 euros. The decisive factor for the increase in the past few days is the clear catch-up potential that the papers of the IT infrastructure provider currently have according to analysts. Mainly because the company’s business, which ranges from hardware and software products to services, suffered from the pandemic during the months of April and May. With the second slump in demand for IT solutions, revenues in Q2 fell by almost 9% year-on-year to EUR 372 million. CANCOM’s profit even dropped unexpectedly by 30%. In the meantime, however, the management expects catch-up effects in the second half of the year and has therefore issued the prospect of a moderate increase in sales and earnings growth. Investors have not yet priced in the business recovery in the share of the full-service IT provider. Obviously, there are still considerable doubts, as the board of directors had mentioned a normalization of macroeconomic activities as a prerequisite for achieving the company’s goals. CANCOM, whose most important partners include HP, Microsoft, IBM, SAP, Apple and Adobe, should, like other technology companies, leave this weak phase behind. Especially since the company has crucial core competencies, which sooner or later should be in greater demand again in view of the many outdated IT systems and the ongoing need for digitization.
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