Original-Research: LION E-Mobility AG (von NuWays AG): BUY
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Original-Research: LION E-Mobility AG - from NuWays AG
05.08.2024 / 09:06 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to LION E-Mobility AG
Company Name: LION E-Mobility AG
ISIN: CH0560888270
Reason for the research: Update
Recommendation: BUY
from: 05.08.2024
Target price: EUR 3.60
Last rating change:
Analyst: Christian Sandherr
Weak H1 figures but progress on strategic topics; chg.
Following a particularly weak Q1 with a mere EUR 1.2m sales, Q2 showed strong
sequential improvements with EUR 4.8m; EUR 6.1m sales in H1. However, this
figure is still somewhat disappointing. While demand from mobility customers
remains decent, storage demand has been particularly weak. This has been the
result of battery pack manufacturers and resellers of used packs
aggressively clearing their inventories (due to a weaker automotive demand)
by selling their products to the storage industry. As a result of the weak
top-line, EBITDA came in at a negative EUR 2.1m. H1 EBITDA stands at EUR -4.7m.
FY24 guidance restated. As a result of the weak start into the year,
management has revised its FY24 guidance, now expecting sales of up to EUR 42m
sales and a slightly negative EBITDA (old: EUR 60-65 and EUR 0.5-1m EBITDA; eNuW
old: EUR 61m sales and EBITDA break-even).
Potential divestment of its 30% stake in TÜV SÜD Battery Testing to shore up
additional liquidity. Mind you, in FY23 TÜV SÜD Battery Testing reported
sales up 41% yoy (EUR 16.1m) and an 18.9% EBIT margin. Thanks to a
structurally growing demand for battery testing capacities, TÜV SÜD Battery
Testing looks set to continue growing at roughly 15% p.a. during the
mid-term. In light of this, LION should be able to receive a
mid-single-digit EURm amount for its stake, in our view.
Light battery remains an attractive option. Its immersion cooled battery
pack is currently being tracktested by a German premium OEM. So far, the
preliminary results are quite promising: vehicles with battery voltages of
400 and 800 Volts showed performance that was 30% above the current market
standard. Assuming the tests progress as planned, LION should expect a first
request for quotations until the end of the year. A positive outcome would
notably increase the likelihood of it becoming a notably sales driver during
the mid-term (currently not part of our revenue model).
Prominent customer win. LION announced to begin to supply battery modules as
spare parts for delivery vans of Deutsche Post DHL going forward. While we
expect no significant P&L impact in the shortterm, this underpins the
company's products quality and ability to offer customized solutions for
demanding customers.
We reduce our PT to EUR 3.6 (based on SOTP) per share as we cut our sales
estimates but reiterate out BUY rating. Roughly EUR 0.5 per share are stemming
from the TÜV SÜD Battery Testing JV.
You can download the research here: http://www.more-ir.de/d/30359.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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1960453 05.08.2024 CET/CEST
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