KNYJY - Kone: Broad-Based Structural Growth Resumed In Q2; Buy

• Q2 results showed a strong rebound from COVID-impacted 2020, with orders received up 17.2% and net sales up 12.7% organically.
• Growth was broad-based across regions and businesses; Kone's maintenance base has grown by more than 5% year on year.
• New equipment orders in China again grew by more than 10% in units, pricing was slightly better, and services take-up is growing.
• 2021 outlook was revised slightly, implying at most 20 bps of margin decline, despite higher inflation, and up to 9.5% of EBIT growth.
• With shares at €70.22, we expect a total return of 37% (9.8% annualized, with 2.5% dividend yield) by 2024 year-end. Buy.

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