Original-Research: LAIQON AG (von NuWays AG): Kaufen

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Original-Research: LAIQON AG - from NuWays AG

Classification of NuWays AG to LAIQON AG

Company Name: LAIQON AG
ISIN: DE000A12UP29

Reason for the research: Update
Recommendation: Kaufen
from: 07.05.2024
Target price: EUR 10.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

Capital increase to secure further growth

On Saturday, LAIQON announced a cash capital increase in order to secure
further growth and expects 85% of its 20/24 convertible bond holders to
convert into equity by end of May.

The cash capital increase without subscription rights (up to 5.7% or 1.0m
shares) priced at EUR 6.25 per share should yield up to EUR 6.25m of gross
proceeds (eNuW: c. EUR 6m net proceeds), assuming a full subscription, and is
directed at three initiatives:

(1) Investments into efficiency program (eNuW: EUR 1m) should not only smooth
internal processes, but more importantly should decrease OPEX while service
quality should increase at the same time. In our view, LAIQON's group wide
Digital Asset Platform 4.0 (DAP 4.0) already serves as a key enabler for
the group's synergies, but with further investments, we see additional
synergy potential to be realized.

(2) Expansion and further development of white label partner cooperations
and its sales force (eNuW: EUR 4m). In our view, this should enable LAIQON to
scale its products and services and offer them to a broader customer base,
further securing AuM and thus sales growth.

(3) Implementation of an information security management system (ISMS - ISO
27001), also called the 'banking standard', which should set LAIQON up for
a new level of IT security and allows for intensified cooperation with
customers and partners such as Union Investment (eNuW: EUR 1m).

Also, the last conversion window of the outstanding 20/24 convertible
opened on May 3rd and should close on May 31st. Management expects a 85%
conversion rate (20% already converted, 20% held by management and to be
converted and 45% of other investors signalling a conversion), implying a
casheffective debt repayment of only EUR 0.75m, but also some 670k of new
shares to be issued at EUR 4.85.

The cash inflow from the capital increase and the limited cash outflow from
the outstanding convertible, should give LAIQON enough maneuverability to
execute on the strategic growth initiatives. More importantly, the fact
that investors signal interest to subscribe to new shares at a 26% premium
to current levels (capital increase) and that 85% of convertible holders
will likely convert to equity, shows LAIQON's current undervaluation, in
our view.

Thus, we reiterate our BUY recommendation with unchangend PT of EUR 10.00,
based on DCF.

You can download the research here:
http://www.more-ir.de/d/29615.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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-------------------transmitted by EQS Group AG.-------------------

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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