Original-Research: Singulus Technologies AG (von NuWays AG): Hold

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Original-Research: Singulus Technologies AG - from NuWays AG

06.11.2024 / 09:01 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: 06.11.2024
Target price: EUR 1.60
Target price on sight of: 12 months
Last rating change:
Analyst: Konstantin Völk

Mixed Q3 preview // guidance looks ambitious

Topic: Singulus will release its Q3 report on November 13th. We expect solid
top-line growth and bottom-line improvement. However, to become profitable,
the company still has to overcome major obstacles.

Sales should increase 49% to EUR 21m (eNuW) from a low comparable base due to
project postponements in H2'23. We expect EBIT to come in at EUR -1.5m, up
from EUR -4.5m yoy, thanks to a higher sales contribution from the more
profitable Semiconductor Segment and several cost-cutting measures. With EUR
24.4m order intake in H1'24e (47% of total order intake), the Semiconductor
segment experienced a strong demand, which should benefit gross-profit
margins in the coming quarters.

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). Beyond that, Singulus is relocating parts of the assembly for
thin-film solar-modules to China. This will not only reduce shipping costs
but also save money as several components for solar modules are cheaper in
China.

Ambitious FY guidance: Singulus revised its guidance in July to EUR 95-105m
sales (old: EUR 120-130m) and an EBIT in the range of EUR 3.0-6.5m (old: low
double-digit EURm). For us, the revised guidance still looks ambitious
considering the current order backlog of EUR 70m (vs. EUR 67m H1'23) and the
development of major projects. Hence, we expect only EUR 86m in sales and EUR
-1.9m in EBIT for FY24e.
Reorganization of financing: In August, the company announced the
reorganization of its EUR 20m loan from CNBM. Further, CNBM guarantees
Singulus to cover its financial obligations until March 31st 2025. Although
CNBM has made a verbal promise to provide Singulus with the necessary
liquidity beyond thatdate, Singulus' Going Concern beyond March 2025 looks
still questionable and would require further improving operations in our
view.

As soon as long-term financing is secured, one should refocus again on the
improving operating business with new innovative product solutions, i.e. in
the fields of microLED, hydrogen and solid-state batteries, which have the
potential to bring Singulus back to black numbers.

We reiterate HOLD with an unchanged PT of EUR 1.60 based on DCF.

You can download the research here: http://www.more-ir.de/d/31191.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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2023285 06.11.2024 CET/CEST

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Quelle: dpa-AFX