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

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Original-Research: Rubean AG - from NuWays AG

Classification of NuWays AG to Rubean AG

Company Name: Rubean AG
ISIN: DE0005120802

Reason for the research: Update
Recommendation: Kaufen
from: 05.06.2024
Target price: EUR 9.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Capital increase to secure growth financing; chg.

Topic: Rubean successfully placed a 10% capital increase. Further, it
agreed with Cyclcebit to convert the outstanding convertible bond into a
regular bond that is now due in three tranches. Both initiatives should
ease the liquidity situation. In detail:

Capital increase secures growth ambitions. By using the existing authorized
capital, all 327,626 shares were placed at an average share price of EUR 6.06
per share, increasing Rubean's share capital from EUR 3.276m to EUR 3.604m. The
proceeds from the capital increase amounts to EUR ~2m and should be i.e. used
to finance the ramp-up of closed and upcoming partnerships that should fuel
the company's topline, ones up and running.

Agreement with cyclebit relaxes liquidity situation. Rubean and Cyclebit
reached an agreement on the modalities of the expiring convertible loan of
EUR 3.4m from 2022. Cyclebit waives the option to convert the loan into
shares and agreed on the repayment in three stages together with interest.
We expect the repayment of the first tranche (eNuW: 1/3 of the total
amount) including interest within the next weeks and the next tranches not
before FY25. This should ease the liquidity situation and let room to
finance the growth of the company.

Product roll-out in full swing. Rubean has signed a whole series of
important strategic partnerships within a short period of time (i.e. SEUR,
Global Payments, Correos, emerchantpay), all that indicate that RubeanŽs
leading softPOS product is ready and that the roll-out is in full swing.
Consequently, management expects for FY24 to grow sales by 135% at
mid-point to EUR 2.2-2.5m. On the back of the recently announced cooperations
(i.e. with Global Payment), paired with further likely customer wins, we
consider this guidance as achievable, anticipating sequential improvements
and EUR 3.0m sales (eNuW).

As we see Rubean at the forefront of the rapidly growing market for mobile
payment acceptance systems, we expect Rubean to achieve profitability by
FY25 and and consider managements mid-term vision of EUR 10+m in sales and
40+% EBIT-margin by FY27 as reasonable. However, in light of the expected
steep growth trajectory resulting from partnerships starting to
materialize, delays in execution could have a huge impact on estimates.

BUY with an unchanged PT of EUR 9.00, based on our DCF.

You can download the research here:
http://www.more-ir.de/d/29979.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The result of this research does not constitute investment advice
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