Mytilineos - Well placed to benefit from renewables

Mytilineos is well placed to benefit from a push in the EU to accelerate renewable plans. It has a renewable portfolio of c 7GW and is well funded to support its investment in the energy transition, with financial flexibility of c €1.5bn augmented by strong operating cash flow across all areas of the business. We forecast EPS growth of 28% pa over the period FY21–24, which supports a dividend yield of 6% in FY24e. It trades at a P/E of just 8x (FY22e) and 6x (FY23e). Based on our FY22 net income forecast of €271m, we expect Q1 earnings to be substantially ahead of the €37m reported a year earlier at Q121, and possibly ahead of the strong Q421 (€65m).