TKH Group slumps on growth slowdown, near-term challenges

TKH

15/08/2023 09:04

** Dutch technology company TKH Group  TWKNc.AS  plummets
about 10% following Q2 results signalling slowdown and weak
short-term outlook for key segments
    ** Q2 turnover comes in at 475.1 mln euros, up 2.6% YOY but
below the 8.2% YOY growth seen during Q1, implying for Berenburg
a slowdown despite a much easier comparison base 
    ** The broker expects weaker market conditions to continue
for Smart Vision, TKH's monitoring tech segment, into H2
    ** Smart Connectivity, its energy distribution solutions
division, should see H2 turnover and adjusted EBITA fall due to
destocking, onshore energy cable project delays and temporary
underutilisation of subsea cable business 
    ** TKH targets FY adjusted EBITA in 237-247 mln euros range,
which is below Berenberg's estimations of 253.8 mln euros
    ** Berenburg is optimistic long-term, saying "the key to the
group’s investment thesis remains the outlook for 2024"
    ** "TKH mentions destocking and project delays as negative
factors for its onshore energy cable business and
underutilisation of subsea cables in Q3 as well as higher
anti-dumping duties, which all does not read very well," ING
says
    ** Shares head for their worst day since mid-March 2020
    ** They touch their lowest price since end-Jan


 (Reporting by Pierre John Felcenloben)
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