contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment CompanyTagList on Company {
  pageUrl
  name
  viewerIsFollowing
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    ...CompanyTagList
    id
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls {
    pageUrl
    lang
  }
  imgUrl
  description
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      defaultInstrument {
        isin
        id
      }
      id
    }
    slug
    ... on CompanyReport {
      reportUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    id
    name
    viewerIsFollowing
    defaultInstrument {
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


componentas-convertible-bond-is-not-particularly-expensive

__typename

title

isPremium

lang

htmlBody

companies

createdAt

publishers

authors

reactionGroups

pageUrl

alternatePageUrls

imgUrl

description

Analyst

Erkki Vesola

Componenta is a manufacturing company. The company is a supplier of casting solutions that are also used in a number of industrial vehicles, mainly trucks and larger machines. In addition to the main business, associated engineering services are offered. Componenta operates worldwide with the largest presence around the European market. The head office is located in Vantaa.

Componenta

Componenta announced yesterday that it has entered into a three-year 3 MUSD credit facility with the US company MPL, which includes a right to convert the bond into Componenta shares. In our opinion, the terms of the loan are reasonable and even when fully converted, the monetary dilation effect of the debenture arrangement is minimal. 

Translation: Original comment published in Finnish on 5/21/2024 at 8:29 am EEST.
Componenta announced yesterday that it has entered into a three-year 3 MUSD credit facility with the US company MPL, which includes a right to convert the bond into Componenta shares. In our opinion, the terms of the loan are reasonable and even when fully converted, the monetary dilation effect of the debenture arrangement is minimal.&#xa0;
<h2>Dollar loan with conversion right</h2>
Componenta announced yesterday that it has reached an agreement with the US company MPL (no further information on the company in the release) for a 3.0 MUSD (2.76 MEUR) convertible bond arrangement, providing funding over 30 months. During this period, Componenta can draw down loans in installments of 0.75 MUSD with a maturity of 3 years. The purpose of the loan is not specified.
The other main terms of the facility are:
<ul>
<li>The conversion right starts 18 months after the issue of the convertible bond required for conversion;</li>
<li>The conversion price is 91.5% of the weighted average share price for the five trading days following the date on which the conversion right is exercised;</li>
<li>The loan carries a coupon of 4.0% p.a;</li>
<li>Componenta will pay a total of approximately EUR 100,000 in fees for the arrangement;</li>
<li>Componenta has the right to redeem the convertible bonds at any time during the term by paying only the principal and accrued interest.</li>
</ul>
<h2>Overall, the terms are very reasonable</h2>
Since the conversion right is by definition &quot;in the money&quot;, i.e., it has a cash value throughout its term, it will probably be exercised near the end of the term, unless Componenta makes an early redemption. If the loan were to be fully drawn and the conversion option fully exercised, the dilution at the current share price would be quite significant at 13.5%. On the other hand, the &quot;value dilution&quot; at the current share price would be only 1.0%, which is very reasonable for existing shareholders. Taking into account Componenta&apos;s redemption right and the fact that the 4.0% coupon on the loan is lower than the assumption used in our projections for the average interest rate on Componenta&apos;s debt (5.0-5.5% in 2025-2026), we believe that the terms of the loan are very reasonable for existing shareholders.

Inderes

Componenta's convertible bond is not particularly expensive

Probabilities of success in drug development

Return on capital (ROE, ROI, ROIC, RONIC)

Drug development investment: Value creation through M&As and licensing agreements

Helsinki Stock Exchange is cheap

Valuation methods: Valuation multiples

	2023	24e	25e
Revenue	101.8	104.3	109.3
growth-%	-6.67 %	2.42 %	4.84 %
EBIT (adj.)	-0.5	1.8	3.7
EBIT-% (adj.)	-0.46 %	1.74 %	3.38 %
EPS (adj.)	-0.28	-0.00	0.22
Dividend	0.00	0.00	0.10
Dividend %			3.72 %
P/E (adj.)	-	-	12.30
EV/EBITDA	6.05	4.62	3.63

Dollar loan with conversion right

Overall, the terms are very reasonable

Componenta

Key Estimate Figures07.05

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