-EQUITY RESEARCH: KEMIRA OYJ

This document is an Equity Research report for Kemira Oyj, prepared in accordance with the format recommended by the CFA Institute. I had the privilege of participating in a chemical industry apprenticeship program with PNB Paribas, which caught my interest in digging further into specialty chemicals and led me to choose Kemira as my target company. My choice of Kemira was motivated not only by my growing curiosity about their resilient business model but also by the fact that they had a significant sulfuric acid manufacturing facility situated in my hometown, Kokkola, Finland, which I found particularly interesting to observe and study. This report issues a HOLD recommendation for Kemira Oyj, with a price target of 23.0€/share for 2024YE, representing a downside potential of 3% against the closing price of 23.74€/share, as of June 13th, 2024, with medium risk. In terms of valuation, the DCF approach was the preferred method, but complemented with relative valuation. The company valuation is subject to significant risks, i.e., i) massive recession; ii) heavily overpaying when making the upcoming acquisition; iii) further weakening demand and delayed demand recovery.