Research Dynamics - Report on CPHN: Investor Day Update

The CPH Group hosted its Investors’ Meeting on 9 November 2026 in Zurich, in which the company highlighted its strategic priorities and growth opportunities across the Perlen Packaging (Packaging) and Zeochem divisions. The Group remains focused on expanding its high-value product portfolio, strengthening its global market presence and improving operational efficiency, supported by structural growth trends in healthcare, demographic change and energy.

The company outlined distinct growth initiatives for both divisions, with Packaging focusing on higher-barrier pharmaceutical packaging and the development of its bottles and containers business, while Zeochem continues to expand its offering in chromatography gels, molecular sieves and deuterated compounds. Alongside these initiatives, management emphasised the integration of recent acquisitions and the realisation of synergies to support profitable growth.

Outlook for FY2026

The company considers the long-term megatrends in health and energy to be intact and expects its expanded product portfolio to strengthen its market position in both divisions, but notes that market conditions remain challenging.

Group: Sales and EBITDA are expected to be slightly above the prior year, while EBIT and net result are now expected to be broadly in line with it. The guidance assumes stable exchange rates and no major escalation of geopolitical conflicts.

Chemistry: Sales are expected to be higher than in 2025, while EBITDA is now expected to be slightly below the prior-year level, amid strong competition in lithium-based molecular sieves and a temporary slowdown in deuterated compounds

Packaging: Sales and EBITDA are expected to exceed 2025 levels, supported by higher share of higher-value blister films, improving profitability at LOG Pharma and cost-reduction measures.

Mid-term Outlook:

CPH has reaffirmed its mid-term financial targets, supporting its sustainable growth strategy. The company expects annual net sales growth of 5%-8%, an EBITDA margin of 16%-18% and a free cash flow margin of 8%-10%, while maintaining an equity ratio above 50%. The dividend payout ratio target remains at 40%-60% of the net result, up from 25%-50% previously. Management expects to reach these targets through organic growth, portfolio expansion, margin improvement and cash conversion. Under its capital-allocation framework, CPH aims to provide an attractive, sustainable dividend while retaining the capacity to invest in organic growth and targeted M&A and preserving a strong balance sheet.

Valuation and conclusion

CPH is well placed to benefit from structural growth in healthcare and energy through its Packaging and Chemistry divisions, which should help it navigate the current challenging market environment. With the Swiss and German packaging plants running close to full capacity, a richer product mix, ongoing cost reductions and an expected recovery in deuterated compounds, the Group’s EBITDA margin has scope to rise to the 16%-18% target range (from 15.0% in 2025). Together with the integration of recent acquisitions, this could drive earnings higher over the medium term.

We value CPH using DCF and relative valuation techniques. Factoring in the guidance, our intrinsic value stands at CHF 87.4 per share implying an upside of 46.2% from current levels. For relative valuation, since the Group operates in two entirely different divisions, we compare CPH’s divisions with various sets of relevant industry peers. We have employed three parameters – EV/EBITDA, P/S, and P/E - to analyse the relative valuation of the Group. CPH currently trades at an EV/EBITDA multiple of 8.7x (FY2026e), a 9.8% discount to the weighted average multiple of division peers.