So you don’t see potential in the Indian joint venture/collaboration or in US production? @Umpimahka
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There is potential, and it could enable them to further reduce costs, improve service levels, and perhaps even attract new customers. My point was just that they have been struggling with these same issues for years, even a couple of decades. I’m not sure if the challenges are structural in this business sector (like many other bulk industries).
For this reason, I remain cautious with Exel, but I’m keeping an eye on it because it’s certainly possible that I’m wrong. There are investors more qualified than me who are interested in this (I recall at least that RandomWalker has sometimes mentioned investing or at least watching it).
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Exel Composites has initiated employee negotiations concerning the closure of its factory located in the downtown area of Nanjing, China. The negotiations affect 46 employees. In addition to this factory, Exel Composites has another production facility in the Nanjing region, to which the production from the closing factory is intended to be transferred.
The closure of the Nanjing factory is estimated to result in annual synergy benefits and cost savings of approximately EUR 0.7 million in total. According to preliminary estimates, the closure and transfer of production would incur a one-off cash-effecting cost of approximately EUR 1.2 million and a non-cash-effecting write-down of approximately EUR 1.0 million.
Exel Composites also intends to sell the factory property of the closing factory. The closure of the Nanjing factory and the sale of the property are estimated to have a one-off combined positive impact on the group’s operating profit and cash flow in 2022.
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These energy matters are concerning in the current situation. Wind turbine companies like Nordex and Vestas Wind got a new boost. But who knows what part Exell has in the components of the power plants? I think it makes at least wind turbine blades? Is it a big business and does Exell do anything else for wind turbines?
There should probably be an increase in both percentages in the future, as there will be a need for cleaner electricity production, and governments will inevitably have to increase defense spending.
It’s probably heading in the right direction. 
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“The profitability of the US business unit no longer negatively impacted the Group’s operating profit during the review period.” 
“In February 2022, we announced our plan to close one of our factories in China. Production at the factory to be closed has already ceased, and the transfer of operations to our other factory in the Nanjing area has progressed well despite delays caused by the Covid-19 situation in China. A one-off expense of 2.1 million euros related to the factory closure has been accounted for in the quarterly figures and adjusted operating profit.”
“From the perspective of longer-term business environment development, the current geopolitical situation accelerates the green transition and forces many companies to rethink their global supply chains.”
Indeed, light at the end of the tunnel.
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And also this:
The sale of the property of the factory to be closed is also proceeding according to plan. In addition to annual synergy benefits and cost savings of approximately EUR 0.7 million, the closure of the factory and the sale of the property are estimated to have a one-time combined positive impact on the group’s operating profit and cash flow in 2022.
- 0.7 million in annual synergy benefits
- Positive impact from closure in the same year
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Didn’t drink as much coffee today as yesterday.
But today I did drink Exel 
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OP: Increase → Buy, target €8.00 → €8.20
Inderes: We are reviewing our recommendation to “increase” (previously “reduce”) and our target price to €7.00 (previously €7.50)
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Thank you for the good analysis. Let’s hope the turnaround for the better has happened. One thing I was left wondering about. The company itself has mentioned electrical conductor cores as a source of growth. Can someone explain to a layman what these are and what their significance is for the company?
The number of owners has also increased in a year.
Largest Shareholders
On April 30, 2022, Exel Composites had 7,486 shareholders
(6,589 shareholders on April 30, 2021).
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Indeed, quite interesting.
The question seems to be whether those leaving know something others don’t yet. Related to this, one could speculate about corporate arrangements in which Exel would be involved. Or, for one reason or another, the departures are part of natural turnover and coincidentally happen at the same time.
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This position has been filled.
https://www.inderes.fi/fi/tiedotteet/muutos-exel-composites-oyjn-johtoryhmassa-0
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Exel is apparently getting into disc golf and starting to make discs. There’s certainly a market and demand there, but probably also competition. A quick glance shows that Discmania seems to have made 25 million in revenue last year and is aiming for over 40 million this year, so there’s potential there, but who can then assess what kind of edge Exel has.
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On Instagram, there are at least a couple of familiar faces from disc golf. At least last summer, discs were selling quickly. Kristian K. was one of the faces on IG who just won some competition in Helsinki.
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This was the first leg of the Finnish Pro Tour in Tali, which Kristian Kuoksa won, and he appears to be one of several players sponsored by Exel.
Exel’s disc selection is still in its early stages, but the first couple of discs, Havu and Kanto, have been named and approved for competition by the PDGA (governing body).
- Kanto from Exel Discs | Professional Disc Golf Association (pdga.com)
- Havu from Exel Discs | Professional Disc Golf Association (pdga.com)
Generally speaking, this is a good growth initiative that could have been launched a few years earlier, as 43% of 15-24 year olds in Finland say they play disc golf. Last year, these plastic discs (at least the most popular ones) sold out from store shelves, but this year there is certainly enough competition among equipment manufacturers, so this won’t be a goldmine, but Exel can take its share by keeping pro and amateur players/enthusiasts satisfied.
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Are we sure we’re talking about Exel Composites’ products here? Sports equipment is still made under the Exel brand, which is not connected to Exel Composites in any way.
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Who could be a potential buyer?
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