Research Dynamics Update on CPH Group: Key Investor Day Highlights

CPH Group recently hosted its annual Investor’s Day, detailing strategic and financial goals. The focus is now on growth in the Chemistry and Packaging divisions following the paper business spin-off. Brands like Zeochem and Perlen Packaging are set to capitalize on niche market opportunities.

Key highlights included Perlen Packaging's initiatives in pharmaceutical packaging. With a new plant in Brazil, the division aims to strengthen its global presence. The pharmaceutical blister packaging market, anticipated to grow 3-6% annually, presents significant growth potential.

The Packaging division focuses on highly regulated pharmaceutical markets, bolstered by consistent repeat orders. New product developments, like halogen-free films, align with the shift towards a circular economy.

The division's robust volume growth and over 8% annual growth over the past decade underline a positive outlook. Cost optimization efforts are projected to enhance margins to 16-18%, fostering solid earnings growth.

Current valuations of CHF 86.1 per share indicate a 31.7% upside. CPH trades at a 45.0% discount to peer averages based on EV/EBITDA multiples.