Higher CAPEX, but dividend maintained Sonel remains a company with a safe balance sheet and a surplus of free cash.
This allows you to plan the long-term development of your company and invest in new product lines. This year's CAPEX plan will be exceeded (+PLNm 1), and further increases should be expected in the following year (up to approx. PLNm 15 million, +20% vs. previous assumptions).
However, this should not undermine the company's dividend policy, which is why we maintain the payment of 75% of the company's profit (i.e. PLN 0.72 per share). Strategic objectives for 2024 upheld Sonel has not revised its plans included in the 2022-24
Strategy update:
PLNm 250 of consolidated sales and 17% ROE (> PLNm 16 of net profit) in 2024. We still consider them ambitious, especially with the uncertain situation in the area of meters (Foxytech).
We believe more in the execution of the planned profit than in the amount of revenue. We estimated the value of Sonel's shares on the basis of the DCF (PLN 12.5) and comparative (PLN 10.2) valuation methods, which, after weighing the above valuations, allowed us to set the target price (9M) at PLN 12.36
