These good results seem to be explained by mainly 2 elements :1/...

These good results seem to be explained by mainly 2 elements :

1/ A better sales mix
This result shows that the company is resilient even when there is a return of imports and a decrease of prices.
They explain it by an improvement of their sales mix.
That's a key element which shows that they are progressively improving their pricing, which has been their main weak element in the past.

2/ Strong sales in key industrial sectors (especially transport and ongoing infrastructure)
It is significant as it has almost fully offset the weakness in residential construction* which represent 42 % of sales.

These 2 elements do not seem to be one-offs.

Whatever way we look at it, Capral share is cheap.
It is now valued with an EV/EBITDA 23** of less than 2x.
This valuation seems to reflect more their past problems, rather than the new profile of the company which shows a better resistance to the economic cycle.

I will send some questions to the company to have more details regarding these elements.
Please do not hesitate to add any element that they may have indicated during their conference call, as I did not have the opportunity to access it.

* as they have well indicated in their presentation, there is a risk that their weakness with residential construction persist as their business is mainly related to detached house and low rise apartment building, which future construction is expected to come more from high rise dwellings.
** this ratio does not take into account the value of the existing unused tax losses (199 m$ at 30/6/23).