KLINGELNBERG: Acquisition with perfect timing!

After a bleak and difficult phase, we have been very convinced of the gear technology company KLINGELNBERG again for some time, as our last reports show. This inspired us to make an additional purchase at CHF 15.50, which we did just on the issue date of the last WI issue (09.11.23). On balance, this reduces our purchase price from CHF 35.05 to CHF 25.275. In general and in view of the excellent half-year figures 23/24 published on November 17, we are convinced that the share can reach this level or should have reached it long ago. Although the economy is under considerable pressure, not least in the mechanical engineering sector, KLINGELNBERG, the world's leading "niche player" in high technology, was able to continue its sustained positive development. Gear cutting technology is needed by many industries, even or especially in the technological trends of the future. This fact has enabled the company to record the highest order intake ever achieved in a first financial year: In the first six months (01.04. to 30.09.), the KLINGELNBERG Group increased this figure by EUR 24.8 million to the aforementioned record level of EUR 180.9 million. The order backlog climbed by almost EUR 50 million to EUR 335.1 million, which corresponds to excellent growth of +17.2%. Cash flow rose from EUR 7.5m to EUR 12.7m compared to 2H22, the company improved its operating result to EUR 4.7m and net debt was further reduced!

Our optimism that the share should now finally break out above the CHF 20 level is also based on the fact that KLINGELNBERG is also very confident about the future because, as mentioned, it supplies a broad range of industries, as we showed in detail in the last issue of WI. A little too much "euphoria"? Possibly, but the signs are already flashing very "green". Target price remains at CHF 24 for the time being!