Sarantis announced today the acquisition of Czech cosmetics company ASTRID for E6.5m; this implies P/S 2013 of 0.93x and a pre-tax P/E of 11.0x going down to 3x-4x on a post-synergies basis; we estimate the acquisition is 6.5%-8.5% EPS accretive (2014E pro-forma); move re-affirms Sarantis strategy to use its strong balance sheet to expands its business. We expect more such EPS and PT accretive moves and we reiterate our OI rating. The investment case is too compelling to ignore…to access this report contact@researchgreece.com

We are not big fans of optionality but Sarantis case is too compelling to ignore. 3YR EPS CAGR +18.5% => shares trade 9.5x EPS 2016E and 5.1x EBITDA 2016; 12% FCF yield 2016E; a net cash balance sheet; 2/3 of sales generated outside Greece. Strategy skewed towards acquisitions implies EPS accretion even under conservative assumptions; we upgrade our rating to OI; see status quo and acquisitions potential in the note attached…to access this report contact@researchgreece.com

Q4 13 EPS at E0.136 Vs. RGe E0.134 on lower sales, better margins; E10m of FCF helped by E8m of working capital sent FY figure to E24m (was E10m in 2012); not bad for an E265m market cap company with net cash of E22m. Do not expect the same FCF in 2014, though. The first 50 days of trading showed a single digit yoy drop in Greece, albeit the rate improved in the last 30 days. Sarantis will be providing 2014 guidance on April 3; shares on 15x P/E and 9x EV/EBITDA 2015E. We stick to our 2014 and 2015 estimates for EPS of E0.5 and E0.6 respectively… to access this report  contact@researchgreece.com

Results out on Oct 30. Strong margins to drive EPS +14% yoy, on same pace with previous quarters. Better sourcing of materials and lower personnel costs behind our +130bps yoy gross margin estimate. Clean net income to reach E10.2m (+51% yoy) on a 9M basis. This puts full year net profit company guidance of E13.9m on upside risk territory. How much of this is in the price…? to access this report  contact@researchgreece.com