Original-Research: Singulus Technologies AG (von NuWays AG): Halten

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Original-Research: Singulus Technologies AG - from NuWays AG

Classification of NuWays AG to Singulus Technologies AG

Company Name: Singulus Technologies AG
ISIN: DE000A1681X5

Reason for the research: Update
Recommendation: Halten
from: 09.04.2024
Target price: EUR 1.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Konstantin Völk

Uninspiring FY23 results, positive outlook for FY24e; chg. est.

Topic: Singulus reported uninspiring FY23 figures with top- and bottom-line
below the company's guidance and our estimates. More importantly, FY24
could feature significant sales and EBIT growth.

FY23 sales decreased 17% yoy to EUR 73m (eNuW: EUR 77m), missing the in July
adjusted guidance of EUR 90-100m due to a cyclically weak Life Science
segment and postponements of some larger projects in the Solar segment. Q4
sales came in at EUR 16.7m, 18% lower yoy (eNuW: EUR 21m). FY23 EBIT stood at EUR
-10.1m (eNuW: EUR -8.9m; FY22: EUR 5.9m), falling short of the guidance
(positive low single digit EURm). FY23 order intake decreased 25% yoy to EUR
43m, leading to a backlog of EUR 55m (FY22: EUR 85m).

Positively, sales in the Solar segment increased 30% yoy to EUR 39m (eNuW: EUR
43m), despite the postponement of larger projects with CNBM and a customer
in the US. The US business was particularly strong, benefiting from
subsidies related to the inflation reduction act. The Solar segment should
be a major contributor to sales growth in FY24e, due to the realization of
projects with CNBM and potential follow up orders in the package. Starting
from a high level in FY22, the Life Science segment showed weakness in
top-line growth due to the cyclical nature of the business. Sales came in
at EUR 23.9m, 54% lower yoy (eNuW: EUR 24m). The situation should remain
challenging during FY24e, as the macro environment is still clouded. The
Semiconductor segment saw solid sales of EUR 10.3m, increasing 66% yoy (eNuW:
EUR 9.5). The outlook in the Semiconductor segment looks positive, fueled by
new products in the pipeline such as in the field of LED. By leaving the
niche market and entering the larger LED market, Singulus has a fair
chance of creating enough revenue to cover its fixed costs.

Management released a strong guidance for FY24e and expects to see EUR
120-130m in sales and EBIT in the low double-digit million range, implying
72% sales growth at midpoint (eNuW: EUR 97m sales; EUR -0.3m EBIT). However,
the outlook appears ambitious given the reduced order backlog of EUR 55m
(FY22: EUR 85m), even taken into account order intake of EUR 28m in Q1 as
stated in the CC. Further, a challenging macro environment, uncertainty of
subsidies in the Solar segment and the long lead times of the products will
make it difficult to reach the top-line guidance. That said, the midterm
prospects remain intact with the potential of larger orders from CNBM for
CdTe thin-film modules and a fast-growing LED business. Hence, we
reiterate HOLD with an unchanged PT of EUR 1.60 based on DCF.

You can download the research here:
http://www.more-ir.de/d/29347.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.

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