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: 19.06.2024
Target price: EUR 8.70
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

High debt-to-equity conversion and successful capital increase

Topic: in May, LAIQON's 20/24 convertible showed a 80% conversion rate and
a 5.3% cash capital increase has been placed successfully at a premium.
Both capital measures underpin the investor's appetite for LAIQON's equity
story.

High debt to equity conversion: the conversion window of the outstanding
20/24 convertible bond (A289BQ) closed on 31th May and 80% of bond holders
chose to convert it to equity. This implies the issuance of 618k new
shares, but also a small cash outflow (repayment + interest) of EUR 1.28m
(eNuW) on July 17th for the remaining 20%. In our view, the decision of
the vast majority of bondholders to convert into equity signals that
LAIQON's shares are more attractive than a debt repayment.

Capital increase successfully placed: out of the plannend 1m shares, 928k
new shares at EUR 6.25 per share have been placed to investors, leading to
gross proceeds of EUR 5.8m for LAIQON. While 356k new shares (38%) have been
subscribed by members of the management and supervisory board, 572k new
shares (62%) were subscribed by other existing or new investors. The fact
that the subscription price noted a 20% premium to the market price (as of
announcement date on 4th May) also underpins the mispricing of LAIQON's
shares, in our view.

In sum, both capital measures increase the number of shares by 8.8% (i.e.
1.546m shares). Thus, we changed our per share estimates accordingly, while
our P&L forecast remained unchanged. Moreover, this should also slightly
improve the net debt position to EUR 36m per Y/E'24 (vs. EUR 37m as of Y/E'23).

Looking ahead, FY'24e EBITDA should still remain negative at EUR -2.2m (eNuW;
excluding performance fees), but nevertheless show improvements over last
year (EUR -4.7m EBITDA). Currently, some of LAIQON's funds are approaching
new HWMs increasing the likelihood of performance fees. Thanks to the high
fix-cost base of LAIQON's business, FY'25e should see further substantial
improvements thanks to 1) sales growth (+19% yoy) driven by the promising
Union Investment cooperation and 2) continued OPEX efficiency (eNuW: +2%
yoy), leading to an overall positive EBITDA of EUR 3.4m (eNuW; +5.6m yoy).

Thus, we reiterate our BUY recommendation and keep our fair equity value
unchanged, but lower our PT to EUR 8.70 (old: EUR 10.00) due to the inreased
number of shares

You can download the research here:
http://www.more-ir.de/d/30057.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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