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By Martin Spieler, July 2, 2018
Summer Dividend Payment: EMS shareholders receive a dividend of nearly 3% after the August 11th AGM. Photo: Shutterstock
For some time I have been thinking about buying shares in Ems-Chemie. How do you classify society and actions? UK
The EMS Group, headquartered in Domat / Ems, Germany, with 26 production facilities in 16 different countries around the world, focuses on high-performance polymers and specialty chemicals.
High-performance polymers have the advantage of being significantly lighter than metal and, at the same time, very heat-resistant. These benefits help make high performance polymers widely used in the automotive and aerospace industries.
In this segment, Ems Chemie has experienced double-digit growth for many years – including the first quarter of this year, when sales in this segment increased by 11.5%. However, the group has even gained more in the specialty chemicals segment with a more than 13.6%. In total, the Group's sales in the first three months increased by almost 12% to 595 million francs.
For the second quarter as well, I expect a hearty growth at Ems. The demand of the European automotive industry continues. More and more car manufacturers are replacing metal parts with plastics. This benefits Ems disproportionately.
The automotive sector accounts for more than 60% of Ems group sales. This means that Ems, as a supplier and manufacturer of plastics, adhesives, sealants, coatings and electrical igniters for the automotive industry, depends on them. strongly.
Although he continues to be attractive, he may be suffering in the future from the hard-to-predict trade policies of US President Trump and the international trade war between the United States, the United States. 39, Europe and China.
However, Ems manages to repeatedly break new product segments with innovative products and to offset the high dependence on the automotive sector and to diversify more strongly the entire product portfolio. Ems products are also used in the manufacture of highly diversified products such as smartphones, machines, glasses or packaging.
The high level of innovation allows Ems to defend and even increase margins and even pass on the price of raw materials to its customers.
Nonetheless, the company's chief executive and majority shareholder Magdalena Martullo-Blocher is not one of those who are constantly upbeat and pushing investor expectations up. On the contrary, the National Council SVP warns shareholders against the risk of weakening global economic growth, which could have a negative impact on the EMS.
The company points out that global automotive production is stagnating virtually. After all, more cars are being produced in Europe, but the gigantic markets of China and North America are almost no longer growing.
After all, this year, Ems expects sales and operating income to be slightly higher than the previous year and so continue to grow. In order to maintain profitability at a high level, the company has launched an efficiency program. How the group started in the first half, we will hear already on July 13th.
The general meeting will be held on August 11, after which the payment of the dividend will be made. In addition to long-term growth, Ems shares offer a good dividend yield of about 2.8%. Measured by the price / earnings ratio, stocks are certainly not cheap, but due to market corrections, they are trading well below the highs of the previous year.
If you enjoy high dividend yields, you can earn a bonus for the holiday budget in August with the Ems papers.
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