LEONTEQ, the leading Swiss provider of structured investment products, also presented excellent half-year results. Operating income climbed by a whopping +41% to CHF 289.2 million in the first half of the year. Net profit soared by as much as +59% to CHF 118 million, and earnings per share rose by +60% to CHF 6.45. The equity base was further increased to CHF 890 million, and the return on equity improved to 29% (H1 2021: 22%). LEONTEQ is targeting a new record in net profit for the full year 2022 (previous record: CHF 155.7 million in 2021). The main driver of the profit increase is the strong trading result, which more than quintupled, reflecting unprecedented market conditions with exceptional price volatility. With these financial figures, LEONTEQ clearly exceeded the expectations of the financial community. The financial community had already expected a "brutal" increase in profits... after all, LEONTEQ had already announced record results in mid-June. But with these figures, even the most optimistic estimates were exceeded. However, the high share price fluctuations also have a downside: customers in most regions are currently said to be holding back somewhat in view of the more difficult investment market environment. This has caused commission and service fee income to fall by -32%. Thanks to the high and stable customer base, with reliable investment volumes, we do not see a problem here!
LEONTEQ does expect that uncertainty among investors will remain rather high. However, it expects that trading results will continue to compensate for restrained customer demand in phases of increased market volatility. We are convinced of the high qualities of the derivatives specialist LEONTEQ! The "cheap" valuation (P/E ratio below 10) is "ridiculous"! Good business figures, the dividend yield around 6% etc. are clear buy arguments for us! The price target stands at CHF 85!
