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

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Original-Research: Coreo AG - von GBC AG

Einstufung von GBC AG zu Coreo AG

Unternehmen: Coreo AG
ISIN: DE000A0B9VV6

Anlass der Studie: Research Comment
Empfehlung: BUY
Kursziel: 2.35 EUR
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann

Planned financing successfully implemented, high liquidity available for
new investments, target price of EUR 2.35 and BUY rating confirmed

As announced after the cancellation of the bond issue by Coreo AG, the
company has successfully concluded a replacement financing. According to
the latest company announcement, the company has received a loan of EUR 23
million from a renowned investor and can thus promptly implement the
planned financing and refinancing measures. These include the repayment of
the warrant bond with an outstanding volume of EUR 15 million, which has a
comparatively high interest rate of 10%. With a loan interest rate of 6.75
%, cost savings can be realised promptly through the redemption of the
warrant bond. According to our calculations, these should be around EUR
0.50 in the coming financial year. In connection with the loan, the two
shareholders Christian Angermayer and the alex schütz familienstiftung have
agreed to strengthen the equity base by at least EUR 5 million in the
course of a capital increase and thus secure the planned growth.

The remaining volume from the loan of EUR 7 million after the refinancing
of the warrant bond is to be used for the continuation of the growth
strategy through property acquisitions. In addition, Coreo AG announced the
profitable sale of three properties in the Hydra portfolio in the Corporate
News of 21.12.2020. With the expected transfer of benefits and burdens in
the first quarter of 2021, the company should report a liquidity inflow of
between EUR 3 - 4 million. The sale will already have an effect on earnings
in the current 2020 financial year through the write-up on the sale price.
Including the inflow of liquidity from the property sale, Coreo AG could
implement new investments of more than EUR 30 million at an assumed LTV of
66 %.

Not to be neglected are the still existing extensive financial assets,
which include, among other things, an investment in MagForce AG. In
principle, the investment in MagForce AG, which had a valuation of EUR 4.50
million as at 30 June 2020, is available for disposal and would thus
support the financing of future property acquisitions. Compared to the
balance sheet date, the MagForce share has also recorded a significant
price increase of over 70%. As of today, this would mean an increase in the
valuation of approximately EUR 3.2 million, which would simultaneously lead
to an increase in NAV.

With the purchase of the neighbouring property to the area already acquired
in September, Coreo AG has around 17,000 square metres for which
residential building rights are to be created. The reduction of vacancies
in the Hydra portfolio is also developing according to plan. While the
properties in Gießen and Kiel are now let on long-term leases, the flats in
Berger Straße in Frankfurt am Main are about to be let. In Wetzlar, too,
all the residential units have been let, and rental negotiations for the
commercial space are well advanced.

In our previous revenue and earnings forecasts (see research study dated 3
November 2020), we had already assumed the successful conclusion of the
financing as the basis for the further expansion of the property portfolio.
Although the new investments we had assumed in the amount of around EUR 25
million have not yet been made, in our previous estimates we had in any
case only taken into account the impact of new investments on sales and
earnings from the coming financial year. With the higher liquidity now
available, Coreo AG should be in a position to implement property and
project acquisitions in a timely manner and we therefore maintain our
forecasts published in the last research study. We will only include the
effects from the promised strengthening of equity by the two anchor
shareholders after the capital increase has been completed.

Since our DCF valuation model also remains unchanged, we are maintaining
our previous price target of EUR2.35. Based on the current price level of
EUR 1.49, we continue to assign a BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/21965.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
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: (4,5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date (time) completion: 21.12.20 (12:00 am)
Date (time) first distribution: 21.12.20 (2:00 pm)

-------------------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