{"id":316,"date":"2021-09-15T01:01:00","date_gmt":"2021-09-15T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=316"},"modified":"2021-09-14T14:27:49","modified_gmt":"2021-09-14T14:27:49","slug":"trellidor-holdings-fy-21-secured-a-good-result","status":"publish","type":"post","link":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/?p=316","title":{"rendered":"Trellidor Holdings &#8211; FY 21 &#8211; Secured a Good Result"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: TRL \u2013 Market Cap: R323m \u2013 PE: 8.3x \u2013 DY: 6.2%<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/09\/Trellidor-Holdings_Results-Note_FY-21.pdf\">Trellidor Holdings &#8211; Results Note &#8211; FY 21<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/09\/Trellidor-Holdings_Results-Note_FY-21.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FY 21 Results: Sterling results, strong cash flows &amp; good dividend<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Trellidor released strong results, reflecting the Group\u2019s healthy recovery with revenue rising +23% y\/y, cost-savings, efficiencies &amp; lower finance costs lifting headline earnings by +181% y\/y and HEPS doubling (+195% y\/y) to 40.8cps (FY 20 \u2013 13.8cps).<\/li><li>Underpinning the results was strong cash generation; management declared a full-year dividend of 21cps (FY 20 \u2013 8cps) putting the share on a juicy 6.2% Dividend Yield.<\/li><li>Management continued to grow the Group\u2019s product range (four new products were successfully launched &amp; a commercial product range expansion is planned in the coming year) while bringing underperforming Main Centre franchisees in-house to great effect (acquired franchises grew revenue +46% like-for-like!), yet the Group also managed to control its overheads and saw a mere +4.3% y\/y rise in operating expenses.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Our Thoughts: Bottom-line momentum likely to continue<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Given the Group\u2019s tight cost control, the price increases that it will leak into the market and franchisee consolidation &amp; growth uplift that we expect, Trellidor\u2019s EBITDA, operating profits and, ultimate, bottom-line momentum appears likely to continue for FY 22E.<\/li><li>We have raised our expectations of share buy-backs from 1.0% pa to 1.5% pa, especially if the share price remains languishing at its current market price.<\/li><li>All these initiatives imply attractive upside to forward HEPS.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Forecast, Valuation and Implied Return: Undervalued &amp; Yielding<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Our DCF Models imply that Trellidor is worth c.548cps (previously: 442cps) on a c.13.5x PE and c.7.1x EV\/EBITDA.<\/li><li>Rolling this fair value forward at our CoE, we arrive at a 12m TP of 656cps (previously: 532cps) implying a large 93% return from the current share price (including dividends).<\/li><li>Speaking of dividends, irrespective of fair values, Trellidor shares still trade on an attractive 6.2% Dividend Yield (&amp;\u00a0 Forward DY of > 7%) that looks to be comfortably sustainable.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-file\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/09\/Trellidor-Holdings_Results-Note_FY-21-1.pdf\">Trellidor Holdings &#8211; Results Note &#8211; FY 21<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/09\/Trellidor-Holdings_Results-Note_FY-21-1.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: TRL \u2013 Market Cap: R323m \u2013 PE: 8.3x \u2013 DY: 6.2% FY 21 Results: Sterling results, strong cash flows &amp; good dividend Trellidor released strong results, reflecting the Group\u2019s healthy recovery with revenue rising +23% y\/y, cost-savings, efficiencies &amp; lower finance costs lifting headline earnings by +181% y\/y and HEPS doubling (+195% y\/y) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111],"tags":[114,131,60,130,112],"class_list":["post-316","post","type-post","status-publish","format-standard","hentry","category-trellidor-trl","tag-home-improvement","tag-property","tag-research","tag-taylor","tag-trellidor"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=316"}],"version-history":[{"count":2,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/316\/revisions"}],"predecessor-version":[{"id":320,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/316\/revisions\/320"}],"wp:attachment":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}