ÖKOWORLD (ÖWAG) reported healthy growth in H117, with sales and operating profit more than doubling year-on-year despite the lack of dividend payments from affiliated companies (€1.6m in H116). AUM continues to increase and currently stands at €970m (up 4.8% vs end-March), approaching the €1.0bn threshold that ÖWAG intends to surpass in FY17. To date, the flagship Ökovision Classic fund posted returns of 6.7% (C-shares) and 5.2% (A-shares). ÖWAG’s shares rallied 27% ytd and are now trading at a premium of 4% and 27% on P/E and EV/EBITDA for FY17e, respectively.
H117 results driven by core SRI business
ÖWAG posted 127.3% y-o-y growth in EBIT to €4.0m (based on Edison calculations) and an EBIT margin improvement of 503bps to 49.1%, supported by top-line growth of 104.0% y-o-y. Net income increased to €3.0m translating into an LTM ROE of 37.6% (compared with 32.6% in FY16). Equity as a percentage of the balance sheet total reached 76% (vs 73% at end-2016) and company’s cash position stood at €12.6m compared with €8.8m in FY16.
AUM getting closer to FY17 target
So far ÖWAG’s flagship Ökovision Classic fund (representing 73% of total AUM) posted returns of 6.7% (C-units) and 5.2% (A-units). The Growing Markets 2.0 fund did much better, generating returns of 12.8% (C-shares) and 13.4% (D-shares) ytd. This compares with 14.7% ytd return of MSCI World ESG Universal net return index and 12.2% in the case of the broader MSCI World Index (though we understand that these indices should not be strictly considered benchmarks for ÖWAG’s funds). Aggregate AUM reached €970m as of 8 September (based on our calculations) vs €925m at end-March, bringing the company closer to the FY17 target of >€1.0bn.
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