Original-Research: Singulus (Von Nuways AG)

(MENAFN- EQS Group) Original-Research: Singulus - from NuWays AGClassification of NuWays AG to SingulusCompany Name: SingulusISIN: DE000A1681X5Reason for the research: UpdateRecommendation: HaltenTarget price: EUR 1.60Target price on sight of: 12 MonatenLast rating change: Analyst: Konstantin VölkGood start into 2024 and strong order intake; chg. est. Topic: Singulus reported solid Q1 figures with sales and EBIT above ourestimates. Order intake came in strong as already announced on the FY23 CCin April. Q1 sales increased 26% yoy to € 20.6m (eNuW: € 18.6m), despite a low orderbacklog of € 55m end of FY23. Q1 EBIT stood at € 0.6m (eNuW: € -1.3m), upfrom last year's Q1 (€ -0.9m). Growth was particularly driven by the Solar(+24%) and Life Science (+50%) segments. Life Science recovered from a lowlevel in FY23 which was affected by a challenging macro environment and isgaining traction again. For instance, the MEDLINE production system fromSingulus for the processing of contact lenses is steadily gainingacceptance in the market (company news May 14). In FY24e, Solar shouldagain be the most important segment (eNuW: € 50m; + 28% yoy) thanks to CdTefollow-up orders from CNBM as well as potential orders from Enel as theystart their new project in the US. Order intake improved significantly to € 33.2m, a 136% increase yoy due tothe strong demand in the semiconductor segment. Furthermore, managementexpects the order intake to stay at a similar high levelfor the second quarter. Successful refinancing: The € 10m loan from Bank of Shanghai which expiredon May 9, 2024 was successfully refinanced at the end of April withcomparable conditions and a term of 12 months. In addition, Singulus isdiscussing another € 10m loan from Bank of Shanghai to finance thecurrently increasing working capital and repayment of debt tranchesmaturing in FY24e. Guidance confirmed: Management confirmed its guidance of € 120-130m salesand EBIT in the low double-digit million range. However, despite the strongorder intake of € 33.2m in Q1, the outlook appears ambitious given thedifficult macro environment and the challenging situation of the solarindustry in Europe due to low-cost solar modules from China. That said,Singulus is on a good way to reach operating breakeven this year (eNuW:sales € 97m; EBIT € 0.2m) after five years of negative EBIT (adjusted forthe extraordinary income of € 12.1m in FY22 from a property sale). Singulus midterm prospects remain intact with the potential of largerorders from CNBM for CdTe thinfilm modules and a fast-growing μLED andhydrogen business. Yet, as this is already reflected in the currentvaluation, in our view, we reiterate HOLD with an unchanged PT of € 1.60based on DCF can download the research here:For additional information visit our websiteContact for questionsNuWays AG - Equity ResearchWeb: Email: ...LinkedIn: Adresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.

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