Original-Research: Multitude SE (Von Nuways AG)

(MENAFN- EQS Group) Original-Research: Multitude SE - from NuWays AGClassification of NuWays AG to Multitude SECompany Name: Multitude SEISIN: FI4000106299Reason for the research: UpdateRecommendation: Kaufenfrom: 17.05.2024Target price: EUR 12.00Target price on sight of: 12 MonatenLast rating change: Analyst: Frederik JarchowSolid Q1 figures // FY24 guidance approved; chg Yesterday, Multitude reported Q1 ́24 figures above expectations, but stillwith room for sequential improvements until YE. In detail: Sales of € 64.2m (10% yoy, 1% qoq), was above the anticipated € 59.0m,mainly driven by the stronger growth of the net loan book (NAR) to € 658m(including c. € 589 loan to customer and c. € 68m attributable to warehouselending; vs. € 638m in Q4 ́23). With € 54.1m ferratum contributed most (84%of sales, 13% yoy, 1% qoq), followed by CapitalBox (12% of sales, 17% yoy,17% qoq) and Wholesale banking with 4% of total sales (€ 2.3m; 190% yoy,21% qoq). EBIT came in at € 11.6m (32% yoy, -15% qoq), beating our expectation by 13%(eNuW: € 10.3m), thanks to the stronger topline and lower S&M and personnelas well as other operating expenses, all compensating for impairments onloans that were up significantly (€ 28.3m, 35% yoy, 6% qoq) vs eNuW: €23.6m). Reasons for the lifted impairments were the ramped-up loan book onthe one hand, but also credit losses in certain CapitalBox markets. Asinterested expenses also expanded by 48% to € 8.7m (vs eNuW: € 7.7m), EBTof mere € 2.8m (-3% yoy, -30% qoq), left room for improvements. Overall, Multitude reported a solid set of Q1 figures. While the salesgrowth trajectory is fully intact marking a new record level, thedevelopment of impairment is weighing on profitability. As management isworking on this issue with the highest priority, we see good chances forimprovements within the next quarters. That, paired with further toplinegrowth following the growth of the loan book in Q1, as well as the ongoingtight cost control resulting in stable other OPEX should unlock significantscale effects from Q2 onwards, allowing meaningful EBIT growth. Still, fornow, we conservatively expect € 61.4m EBIT in FY24, which is below theapproved management guidance of € 5m the stock is trading at a 4.3x PE ́25, the growing, highly profitable,resilient and dividend paying company looks undebatable cheap. BUY with an unchanged PT of € 12 PT, based on our residual income model you that Multitude is one of our NuWays Alpha picks for FY24 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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