dpa-AFX Compact

Original-Research: UmweltBank AG (von GBC AG): Buy

09.11.2022
um 09:31 Uhr

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Original-Research: UmweltBank AG - von GBC AG

Einstufung von GBC AG zu UmweltBank AG

Unternehmen: UmweltBank AG
ISIN: DE0005570808

Anlass der Studie: Research Note
Empfehlung: Buy
Kursziel: 16.00 EUR
Kursziel auf Sicht von: 31.12.2023
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

Extraordinary proceeds after sale of wind farm; EBT guidance raised to EUR 40
million; price target reduced to EUR 16.00 (previously: EUR 16.30) after
raising cost of equity; Rating: BUY
 
In an announcement dated 28 October 2022, UmweltBank's management announced
the successful sale of a wind farm investment. The net proceeds of
approximately EUR 20 million correspond to the order of magnitude
communicated in advance, which had held out the prospect of an
extraordinary contribution to earnings in the low double-digit million
range. Including the extraordinary contribution to earnings, the company is
adjusting the forecast for the current 2022 financial year. Earnings before
taxes of approximately EUR 40 million are now expected, compared to the
previous forecast, which had held out the prospect of EBT of EUR 34 million.
 
This means that not all of the net proceeds will be reflected in the
after-tax result. On the one hand, the management of UmweltBank AG will
make higher provisions in response to the current challenging business
environment and the weaker business outlook in the securities business.
Although this has an effect on earnings, the provision increases the
regulatory equity capital and could thus be regarded as an anticipated
retention of earnings. On the other hand, the extraordinary income is used
to take into account currently visible burdens from the valuation of
fixed-income securities in their own portfolio in advance in the current
2022 financial year. In total, the resulting burden on earnings is likely
to amount to around EUR 14 million, although it is not clear from the
company's announcement which portion is attributable to the higher
provisioning and which portion to the valuation adjustment of
fixed-interest securities.
 
However, since the fixed-interest securities are usually held by UmweltBank
AG until final maturity, the nominal amount should flow back in the event
of a trouble-free repayment of the bonds affected by the devaluation. In
this case, there would then be a reversal of the devaluation previously
made, which would be accompanied by a special income.
 
Basically, the current market environment presents a mixed picture with
regard to the business prospects of UmweltBank AG. On the one hand, the
interest rate turnaround is accompanied by an increase in the interest
margin, although positive effects are only likely to become visible in the
coming periods. In the period from January 2022 to September 2022, for
example, construction interest rates have risen significantly from 1.0 % to
around 3.5 %.
 
The picture for new lending business is also mixed. While, according to the
company, demand for financing in the renewable energy sector remains high,
demand for real estate financing is, as expected, subdued. As of 31
December 2021, real estate loans accounted for a total of 35% of UmweltBank
AG's total loan volume.
 
Demand for investment funds is also below management expectations due to
market conditions. In total, the three funds of the UmweltSpektrum family
have a fund volume of around EUR 120 million. In their first press briefing
in 2022, the UmweltBank management announced EUR 230 million as their target
fund volume by the end of the current financial year.
 
We are adjusting our forecasts for the current financial year 2022 to the
newly issued guidance and now expect a pre-tax result of EUR 40.01 million
(previously: EUR 34.01 million) with unchanged sales. Accordingly, the
after-tax result should rise to EUR 27.21 million (previous year: EUR 23.13
million). Our forecasts for the coming financial years remain unchanged.
 
The sum of the discounted residual income results in a value of EUR 566.92
million on a target price basis of 31 December 2023. In view of an
outstanding number of shares of 35.44 million, a fair enterprise value per
share of EUR 16.00 (previously: EUR 16.30) is calculated. On the one hand, the
forecast increase made after the sale of the wind farm has resulted in a
higher fair value. However, the increase in the cost of equity to 4.20 %
(previously: 3.95 %), resulting from the increase in the risk-free interest
rate to 1.50 % (previously: 1.25 %), is accompanied by a reduction in the
target price. Following the sharp decline in the UmweltBank share price, we
now assign a rating of BUY (previously: HOLD).
 

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/25881.pdf

Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (1,4,5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date (time) completion of the study: 08.11.22 (3:04 pm)
Date (time) first publication: 09.11.22 (09:30 am)

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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UMWELTBANK AG O.N.

WKN 557080 ISIN DE0005570808