KNYJY - Kone: Resilient Through 2020 Long-Term Growth Drivers Intact

• Structural growth in the number of elevators continued in 2020 despite COVID-19, with Kone's installed base gaining another 4.5%.
• Even with some buildings being used less or closed during the pandemic, maintenance revenues were back to growing at 2% in H2 2020.
• Sales growth rebounded to 9% in Q1 2021 and, for the full year, Kone is guiding to a 2-6% sales growth and a 0.5-11% EBIT growth.
• Inflation may have an impact temporarily, mostly through people costs; raw materials are only 5% of sales and already included in guidance.
• With Kone stock at €66.86, we expect a total return of 40% (10.2% annualized, including a 2.6% Dividend Yield) by 2024. Buy.

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