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

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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: BUY
from: 18.07.2024
Target price: EUR 8.50
Last rating change:
Analyst: Frederik Jarchow

H1 turnover up by 370% yoy // FY23 figures out; chg

Topic: Rubean published an H1 trading statement that showed ongoing dynamic
topline growth. Further, the company published final FY23, in line with
estimates. Lastly, Rubean announced that Commerz Globalpay went live with
RubeanŽs SoftPOS solution in Germany. In detail:

Final FY23 figures in line with estimates. Sales came in at EUR 1.0m (21%
yoy) and EBIT at EUR -3.8m (vs FY22: EUR -4.0m) both in line with our estimates
(eNuW: EUR 1.0m sales; EUR -3.6m EBIT). Lower personnel expenses (-12% yoy; EUR
2.9m vs eNuW: EUR 3.2m) partially compensating for slightly higher other OpEx
of EUR1.3m (16% yoy) and material expenses of EUR 0.4m (58% yoy). Still, the
negative net income of EUR -3.9m resulted in a deficit uncovered by the
equity of EUR 3.8m, thus requiring a strong FY24 .

Strong H1Ž24 with dynamic sequential improvements. With a turnover of EUR
c.839k in H1 (370% yoy), after EUR 493k in Q1 (incl. a EUR 250-300k one-off,
eNuW), Rubean kicked off the year really strong. The growth was mainly
driven by the newly won partners that are starting to materialize. Still,
the product rollout and thus the sales ramp-up was slower than initially
expected (eNuW: EUR 1.2m in H1Ž24).

Yet, the product roll-out remains in full swing despite minor delays.
Rubean has signed a whole series of important strategic partnerships within
a short period of time (i.e. SEUR, Global Payments, Correos, emerchantpay),
that all show very clearly that RubeanŽs leading softPOS product is ready
and that the roll-out is in full swing. The go-live of Commerz Globalpay
(joint veture between Global Payments and Commerzbank) with RubeanŽs
Soft-POS solution underlines this once more. Consequently, management still
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, paired with further likely
customer wins, we consider this as achievable, but reduce our estimates to
EUR 2.5m in order to reflect certain delays which resulted in a softer than
anticipated H1Ž24.

Nevertheless, we see Rubean at the forefront of the rapidly growing market
for mobile payment acceptance systems and hence expect the company to
achieve profitability within FY25 but consider managements mid-term vision
of EUR 10+m in sales and 40+% EBIT-margin by FY27 as ambitious.

BUY with a reduced PT of EUR 8.50 (old: EUR 9.00), based on our DCF.

You can download the research here:
http://www.more-ir.de/d/30237.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
or an invitation to conclude certain stock exchange transactions.

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