Original-Research: Singulus Technologies AG (von NuWays AG): Hold
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Original-Research: Singulus Technologies AG - from NuWays AG
14.11.2024 / 09:25 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Singulus Technologies AG
Company Name: Singulus Technologies AG
ISIN: DE000A1681X5
Reason for the research: Update
Recommendation: Hold
from: 14.11.2024
Target price: EUR 1.60
Target price on sight of: 12 months
Last rating change:
Analyst: Konstantin Völk
Final Q3 results out in line with prelims; chg. est.
Topic: Singulus released solid Q3 numbers in line with preliminary results
(published on 7 November).
To recap: Sales increased 44% to EUR 20.3m from a low comparable base due to
project postponements in FY23 and supported by a solid order backlog. Sales
were particularly driven by the Life Science Segment with EUR 9.2m sales in Q3
(+131% yoy) and the Semiconductor segment (EUR 5.6m; +87% yoy). On the other
hand, Solar declined by 23% to EUR 5.5m due to project postponements. In
addition, decreasing solar module prices due to competitive pricing from
China, impacts the competitiveness of European producers materially.
EBIT came in at EUR 0.6m, considerably above last year's numbers (EUR -4.9m in
Q3'23) thanks to a favorable product mix towards the more profitable
Semiconductor Segment. Already since the start of the year, Semiconductor
has shown a strong uptick in demand, contributing EUR 31.6m in order intake
during 9M'24 (45% of total order intake).
In addition, the company has several cost saving measures in place: Already
in 2022 Singulus closed the Fürstenfeldbruck site, which saves the company
c. EUR 2m in OPEX (as stated in the Q1'23 CC). For instance, R&D expenses
decreased to EUR 3.6m in 9M'24 (vs. EUR 4.9m in 9M'23) and general
administration costs decreased to EUR 6.1m (vs. EUR 6.4m in 9M'23).
Order intake increased 126% yoy to EUR 18.5m from a muted comparable base,
leading to a solid order backlog of EUR 69m (vs. EUR 61m in Q3'23), driven by a
strong demand in the Semiconductor segment.
Although Singulus' operating business is moving in the right direction, the
company is still operating subscale and needs above EUR 95m sales (eNuW) to
achieve profitability for net income on a sustainable basis. Furthermore,
Singulus has an equity deficit of EUR -44.8m and its financing structure is
heavily dependent on its largest shareholder (17%) and customer CNBM.
Although the collaboration with the Chinese partner worked out well yet, it
is still a major risk which deserves consideration before investing in the
stock.
We reiterate HOLD with an unchanged PT of EUR 1.6 based on DCF.
You can download the research here: http://www.more-ir.de/d/31305.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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2030105 14.11.2024 CET/CEST
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