Original-Research: Havila Kystruten AS (von Montega AG): Kaufen
Source: EQSClassification of
Company
ISIN: NO0011045429
Reason for the research: Update
Recommendation: Kaufen
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change: -
Analyst:
Havila Q1: good but not great (yet)
Overall sales in the first quarter amounted to 292.9 m NOK which fell short
of our expectation (312.2 m NOK) due to two reasons. Firstly, the
contractual revenue (Actual: 96.9 m NOK vs. MONe 102.7 m NOK) from the
government was lowered by 5.7 m NOK due to an accounting effect. The
contract with the
EBITDA came in at -17.5 m NOK which was below our expectation (+29 m NOK).
Apart from the above mentioned effects LNG cost as well as material
expenses where higher than expected, which we are reflecting in our lowered
full year expectations. Also personnel cost were inflated due training
expenses in the light of the ramp-up of operations. Havila will be facing
its first high season with full operations of all four ships this year.
Therefore the company is busy digesting the sacle-up in operations at the
moment but will increase attention to streamlining operations and occupancy
across the route. An indication of these efforts is the launch of the 'Pure
Northern Collection'. This specially curated package, which includes a
morning flight from
Industry parameters promising: In the past months the cruise line industry has shown a strong booking development leading to record Q1 numbers and an increased outlook for all of the the top three cruise line operators (Carnival, Norwegian, Royal Caribbean). Although the direct overlap with the coastal express should be limited it does reflect the overall demand and appetite for cruise holidays which should also support the Coastal Express and Havila.
Conclusion: Even if Havila did not quite achieve our expectation in Q1 we are satisfied with the overall development. We believe this investment case will unfold over several quarters and are certain their moat will widen as time goes by. With significantly positive FCF and the new revolving credit facility of 200 m NOK we see Havila well financed and have lowered our beta to reflect the refinancing of the tranch a bond. We therefore reiterate price target and recommendation.
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Über Montega:
You can download the research here:
http://www.more-ir.de/d/29947.pdf
Contact for questions
Tel.: +49 (0)40 41111 37-80
Web: www.montega.de
E-Mail: research@montega.de
LinkedIn: https://www.linkedin.com/company/montega-ag
-------------------transmitted by EQS Group AG.-------------------
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.