Original-Research: Delticom AG (von Quirin Privatbank Kapitalmarktgeschäft):...

^

Original-Research: Delticom AG - from Quirin Privatbank Kapitalmarktgeschäft

19.05.2025 / 13:58 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of Quirin Privatbank Kapitalmarktgeschäft to Delticom AG

Company Name: Delticom AG

ISIN: DE0005146807

Reason for the research: Update

Recommendation: Buy

from: 19.05.2025

Target price: 4.20

Last rating change:

Analyst: Daniel Kukalj, CIIA, CEFA

Good start into FY 2025

Delticom AG remained focused on profitable growth during Q1 2025 with

revenues growth of 9.0% yoy. This positive development is also reflected in

the overall market environment: According to the European Tyre and Rubber

Manufacturers' Association (ETRMA), the upward trend in the consumer tyre

segment (% yoy), already observed in the second half of 2024 (% yoy),

continued in the first quarter of 2025. Volumes nearly returned to the

levels of Q1 2019 - before the onset of the pandemic. TTM sales fell by EUR

4m to EUR 490 million and were therefore 1% lower than TTM sales in the same

period of the previous year, but the strong Q4 2023 must be taken into

account, so the current TTM development can be seen as positive. Q1 2025

Group EBITDA was also significantly higher year-on-year at EUR 1.5m (Q1

2024: EUR 0.7m), resulting in a TTM EBITDA of EUR 21.1m (4% lower than TTM

EBITDA in the same period last year). If you look at the TTM figures at

sales and EBITDA level, the company's 2025 forecast (Sales EUR 470-490m;

operating EBITDA EUR 19-21m; Quirin estimates: EUR 472m and EUR 19.3m,

respectively) can be considered realistic, as the uncertainties surrounding

the end markets are difficult to predict. The European replacement tyre

market remains dramatically underestimated in terms of size and future

growth potential, which positions the company to benefit from long-term

tailwinds. Applying our ROE/COE valuation approach, we derive a new fair

value of 4.20 (4.10), therefore we confirm our BUY rating. The outstanding

dividend payment of EUR 0.12 per share, which represents an attractive

dividend yield of ~4.8%, and the ongoing share buy-back currently provides

downside risk protection.

You can download the research here: http://www.more-ir.de/d/32662.pdf

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2140704 19.05.2025 CET/CEST

°