After a brief sideways phase, the virus struck in late February and the paper collapsed by 27% within two weeks. But then it shot up by almost 70% (!) Within just two trading days and reached a new all-time high of € 58.50. This did not last for a long time, but even now PEM readers still have a whopping 25% in profit since the latest recommendation.
There was a reason for the high demand for the paper, which was temporarily not traded amidst the flood of purchase orders: The anti-flu drug Avigan – also known as favipiravir – from Fujifilm’s pharmaceuticals division is said to affect Covid-19 patients to be able to help recovery. At the beginning of the week, it was said that the Japanese state was planning to triple its Avigan supplies. This will give the Group’s healthcare segment a tailwind. With a revenue contribution of 741.2 billion yen (around 6.3 billion euros) in the first nine months of March 31. ended Gj. In 2019/20 it represents the largest business area.
Fujifilm can also use this thrust from an operational perspective. Revenue declined 4% to 1.7 trillion yen in the first nine months, operating profit fell 4.2% to 151.6 billion yen. The Christmas quarter also did not deliver the hoped-for contribution with a decline in sales of 4.9%. Therefore, CEO Shigetaka Komori is unlikely to have achieved the goals set (sales: + 2%; operating profit: + 14%) – we even expect sales to decline slightly. The numbers for the FY. are to be presented in May. Then there will be targets for 2020/21 and more details on Avigan sales. We consider sales and profit growth in the mid single-digit percentage range to be realistic. If the demand for medicines continues to increase, even more is possible. The share is therefore attractively valued at the current level with a P / E ratio of 14 and a dividend yield of 1.6%.
Keep accessing at Fujifilm. Stop high at 39.50 euros.
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