Recommended on August 12 on this site for “advice of the day” at 14 euros, the Solutions 30 share on October 14 set a new historic record at 19.16 euros before being the subject of profit-taking in the wake of the market . A good way for our most daring subscribers to position themselves on this very good issue by means of a turbo call. By multiplying its size by 5 over four years, this European leader in the digitalization of the economy and the energy transition has accustomed its shareholders to an impressive growth trajectory in its performance indicators. In question, it has developed a virtuous business model around medium-term contracts signed with telecom operators, energy companies (Engie and EDF) and local authorities to deploy fiber to them, install smart gas and electricity meters. or rechargeable terminals for electric cars. These often large projects provide visibility into Solutions 30’s turnover over the medium term and recurrence since they are accompanied by maintenance and upkeep services. Due to the need to deploy these new technologies, Solutions 30 has shown a profile that is not very sensitive to the economic situation. Witness the health crisis since the group succeeded in the second quarter, and despite the period of confinement, to increase its revenues by 10.3% (including an internal dynamic of 3%). Over the first half of the year, the gross operating surplus thus appreciated by 2.4% to 41.5 million from a turnover up 14.1% to 363.7 million showing a 1.3 point erosion of profitability to 11.4% while net profit was down 32% to 10.5 million. But from the third quarter, the group is confident to return to strong profitable growth. In the medium term, it is targeting 1 billion in income that the consensus of financial analysts aggregated by Factset anticipates for 2022 with an increase of 53% of the gross operating surplus to 149.8 million (against 97.7 million estimated for this year) and a quasi-doubling of net profit to 77.8 million (against 39.6 million expected this year).
The valuation of the share remains reasonable
Consequently, the multiples of 29.3 and 24.2 times the estimated profits for 2021 and 2022 are not excessive in relation to the anticipated growth rates and given the solidity of the company’s balance sheet which showed June net cash (excluding the new IFRS16 standard) of 45.9 million. It is thus possible to bet on the potential of the Solutions 30 share by means of a turbo call issued by BNP-Paribas with no maturity and with a safety threshold set at 10.32 euros below which the share must not fall. Otherwise, the turbo will be deactivated and lose almost all of its value. However, the significant difference between the current share price and this safety threshold limits the risk profile of the certificate and offers significant leeway to unwind the position if necessary. In the meantime, the call has a leverage of 2.18. Thus, in the hypothesis of a rebound in Solutions 30 to 19.50 euros for example, the turbo will appreciate by 21.2%. Conversely, it will show a comparable loss in the event of further profit taking on the share at 16 euros.
Our advice: buy a Solutions 30 turbo call issued by BNP-Paribas (code: FRBNPP01NM24); term: unlimited; level of funding: 9.5996 euros; security threshold: 10.32 euros; parity: 5 turbos for 1 share; price: 1.65 euro; portion: 1.