Original-Research: CENIT AG (von GBC AG): BUY

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Original-Research: CENIT AG - von GBC AG

Einstufung von GBC AG zu CENIT AG

Unternehmen: CENIT AG
ISIN: DE0005407100

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 20.60 EUR
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

- Inorganic growth picks up speed with acquisition of ISR Information
Products AG
- Significant profitability improvement in sight
- Target price raised to EUR 20.60

On 3 April 2022, CENIT AG announced its first company acquisition since
2017 with the majority acquisition (74.9%) of ISR Information Products AG.
The Braunschweig-based company specialises in analytics and process
digitalisation and will strengthen CENIT AG's EIM division in the future.
With the addition of around 200 ISR employees, CENIT AG, which will then
have 300 experts, will advance to become a leading DACH provider in the
field of information management and document logistics. At the same time,
the ISR acquisition will increase their sales and earnings level
(consolidation date: 01.01.2022). According to preliminary figures, ISR
generated revenues of EUR 22.8 million and EBIT of EUR 3.2 million (EBIT
margin: 14.0 %) in the 2021 financial year.

Before the ISR acquisition, CENIT AG had achieved an increase in sales of
2.8 % to EUR 146.07 million (previous year: EUR 142.13 million) in the past
business year. In-house software sales grew particularly strongly,
increasing by 11.1 % to EUR 17.69 million (previous year: EUR 15.93
million). This contrasts with a less dynamic development in sales of third-
party software (+1.3 % to EUR 88.54 million) and in consulting revenues
(+3.5 % to EUR 39.82 million). This is primarily due to the pandemic
effects, which had a particularly strong impact on the aviation, automotive
and mechanical engineering sectors addressed by CENIT AG in this area. The
increase in high-margin proprietary software sales caused EBIT to rise
disproportionately by 71.7 % to EUR 6.23 million (previous year: EUR 3.63
million). According to guidance, the CENIT management had expected an EBIT
of EUR 4.90 million.

Following the acquisition of ISR Information Products AG, the CENIT
Executive Board has raised the guidance published in the annual report.
Currently, sales of approx. EUR 170 million and an EBIT of approx. EUR 9
million are expected. The 'CENIT 25' agenda was also confirmed, according
to which a total turnover level of EUR 300 million and an EBIT margin of 8
- 10 % are to be achieved by 2025. An essential aspect of this agenda is
inorganic growth. After the ISR acquisition, new acquisitions are to be
made regularly in the coming business years.

In addition, the company plans to further strengthen partnerships with
Dassault, SAP and IBM, address new industries, and strengthen collaboration
between the five business units. On this basis, organic growth should also
progress. We have taken this into account in our forecasts and expect
revenues of EUR175.53 million for the current financial year 2022. In 2023,
revenues should increase to EUR193.09 million and in 2024 to EUR212.40
million. With the acquisition of ISR, group profitability should increase
visibly. By 2024, our last concrete estimation period, the EBIT margin
should grow organically to 8.0 %. Together with ISR, however, we calculate
an EBIT margin of 9.1%.

Within the framework of our DCF valuation model, we have determined a new
target price of EUR20.60 (previously: EUR18.80). The increase in the target
price is exclusively a consequence of the higher estimates following the
acquisition of ISR Information Products AG. The positive effects from the
higher estimates, which we have offset against a liquidity outflow of EUR
25.80 million (purchase price less acquired liquidity), outweigh the
negative effects. We continue to assign the rating BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/23839.pdf

Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date and time of completion of the study: 13.04.2022 (08:00 am)
Date and time of first transmission: 13.04.2022 (11:00 am)

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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Quelle: dpa-AFX