On Monday morning, the shares of ANY Security Printing Company rose by seven percent to a new historical high of HUF 2,090.
The printing company reported a quarter-jumping turnover of 44 billion pounds and a profit of 3.5 billion forints, which was 73 percent higher than last year, for the first nine months. The significant improvement was also attributed to the Angolan passport business, which came into force in June, with a budget of 130 million euros – 49 billion forints. had a role.
The performance also convinced the Concorde brokerage house, which follows the company, which confirmed the HUF 2,490 target price for ANY’s shares in its analysis published on Monday. This means that, according to their expectations, it may rise in price by 27 percent in the next 12 months compared to Friday’s closing price.
Due to the potential for significant appreciation, the stock is still recommended for purchase.
Even more so, since the target price does not yet include the dividend, and the printing company is considered a particularly generous payer in this regard as well. Stock analyst Gábor Bukta has also raised his dividend expectations in light of the exceptionally strong third-quarter results, instead of the previous 214 forints, he can return 280 forints per share to investors. Taking the dividend expectation into account, ANY offers a 42 percent yield potential.
Shares can also be more attractive than inflation-tracking government securities
The HUF 280 payment alone means a dividend yield of 14 percent, which is higher than the current yield of (market) government securities available to institutional investors. The company will probably offer the highest dividend yield among Hungarian listed companies in 2024. ANY’s dividend may later even compete with inflation-tracking government bonds, which may make the stock even more attractive, according to Concorde.
The company really got going in the third quarter, increasing its sales by one and a half times, to 17.9 billion forints, and almost doubling its profit, to two billion forints, thanks to strong export activity.
According to the brokerage house, ANY Security Printing is still one of the most attractive small-cap stocks in the region, which is supported by the limited competition, the company’s growth opportunities and expertise, as well as the passport delivery contract in Angola. The latter alone can support sales by several billion forints annually over the next 10 years. The local government and European Parliament elections in 2024 could also increase the result next year.
Investors were able to make a lot of money with the company’s shares this year, because together with Monday’s rally, the price of the paper has risen by 40 percent this year, while the company also paid a HUF 161 dividend to the owners at the beginning of July.