Masterplast's situation has improved, but the turnaround in the construction industry is still pending
Related content
Orsted may pay dividend again after several years
Orsted, the Danish renewable energy utility, recently published its Q2 earnings report, which showed mixed results. The company exceeded analysts’ expectations in terms of both revenue and EBITDA, but fell short of net income estimates. Nonetheless, project developments are on track, and the company’s liquidity position remains adequate. In light of the results, management maintains its 2026 guidance, and announced dividend payment plans for 2027. Overall, Orsted keeps making good progress, so we are keeping the stock on our Equity Top Pick List.
Commodities - Technical Analysis
Gold and silver have broken their downtrends, triggering upward waves that still hold potential for further gains. After a strong retest, the oil price may settle into a range, but there are still opportunities for further gains. Natural gas prices did not reach a new low, but no pattern indicating a reversal has yet emerged. Copper is maintaining its upward trend; it must rise again within the next few days, or the rally could break down. Wheat and corn are also beginning to turn upward again from key support levels after strong retests.
We have revised our DCF model and earnings estimates for Masterplast (a Hungarian player in the insulation business with regional presence). We have lowered our 12-month target price to HUF 2552 (from HUF 3015 as of 01.08.2024), while we maintain our HOLD recommendation. The lower target price is primarily the result of a slower than expected rebound in the construction industry and due to shareholder dilution after the recent capital raise (~14.2% increase in share count).
Masterplast had a rather weak Q1 performance, with revenue being essentially flat compared to a similarly weak base period and it had an operating loss as well. On the upside, the EBITDA was positive and slightly higher YoY. While no turnaround can be seen yet in 2025, but there have been some positive signs here and there on a segment level (contribution of own-produced XPS and new revenue stream from the sale of Certified Energy Savings). The Home Renovation Program and the Rural Home Renovation Program may also have a positive impact on revenues in H2, and commercial production in the company’s new glass wool plant in Szerencs is scheduled to begin in Q3. We view these developments favourably, but the overall business outlook is still characterized by significant uncertainty .
The macroeconomic environment seems mixed: revenue-weighted GDP growth expectations in Masterplast’s countries point to a 1.8% increase in 2025 vs. 1.4% in 2024. However, this estimate was 3.1% a year ago and growth projections for later years are also slightly lower
The recent capital raise significantly improved the company’s liquidity situation (albeit at the cost of dilution). We think that Masterplast has enough liquidity to cover 2025 obligations provided that short-term working capital loans are rolled over. However, over the long-term the company’s cash generating ability must improve to be able to cover future obligations, notably bond repayments at the end of 2026
Get more out of your investments!
Global Markets Services
OTP Global Markets offers a broad range of services in the field of local and international money and capital markets.
Read morePrivate Banking Services
Personal care and expertise with OTP Private Banking, along with the knowledge, security, and innovations of a multinational banking group.
Read more