POLYPEPTIDE: Short-term move utilized... +40.5%!

Perhaps we will regret the sale in the not too distant future if everything goes according to plan at pharmaceutical supplier POLYPEPTIDE. The half-year figures at least show strong growth in sales; an increase of 23.3% in local currency is impressive. The newly opened plant in Belgium made a major contribution to this. However, the very weak profitability is unpleasant: the company posted a loss of EUR 26.5 million, which is significantly more than in 1H24 (EUR -11.4 million). Currency effects and other factors are responsible for this. For the time being, the valuation of the share in the CHF 30 range is probably justified, but nothing more. However, considering that the share was placed at around CHF 75 as part of the IPO in 2021 and that the price even rose to around CHF 140 afterwards, the current price level does not reflect a good track record. Can peptide manufacturers decouple themselves from the economic environment? Possibly. We are, however, sticking to our "Strategy 2025" of bringing in "decent" profits, which we achieved with the announced sale at CHF 29.50 on August 20; we are satisfied with the profit of +40.5%! We also remain invested in the sector with our BACHEM position. If POLYPEPTIDE's share price rebounds again, we will get back in at CHF 22!

POLYPEPTIDE N is listed on the SIX Swiss Exchange under the symbol PPGN, the security number is 111'076'085, last price approx. CHF 28.80.