Studies
Fiscal Year 2010
SNP T-Bone is a Prime Cut
With SNP Transformation Backbone (SNP T-Bone), SNP AG (ISIN: DE0007203705, General Standard, SHF) has developed a solution with the potential to permanently change the entire SAP transformation market and to make it more efficient. The development cost incurred in 2009 (a total of EUR 1.8 million in 2009) have burdened the result – with this background, the EBIT margin of 23.4per cent is even more impressive. The continuously increasing software portion, also in the course of the SNP T-Bone launch, may very well lead to a further increase of the margin. The company itself wants to at least maintain the level of the record margin of the previous year. For the first time, we have taken into account the market success of SNP T-Bone in our estimates. With an EV/EBIT of 9.6 in 2010, with strong growth and further increases of the margin as from 2011, the share will be – from our point of view a top buy.
Margins and order backlog strong
Despite the challenging environment and development expenses charged for SNP T-Bone (transformation-solution), in 2009 SNP posted record EBIT of € 4.7 million. The substantially higher level of order backlog at yearend (+60% vs. 31.12.2008) makes us confident that the company will be back on track for growth in 2010.
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