Original-Research: Singulus (von NuWays AG)
Original-Research: Singulus - from NuWays AG
Classification of NuWays AG to Singulus
Company Name: Singulus
ISIN: DE000A1681X5
Reason for the research: Update
Recommendation: Halten
Target price: EUR 1.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Konstantin Völk
Good start into 2024 and strong order intake; chg. est.
Topic: Singulus reported solid Q1 figures with sales and EBIT above our
estimates. Order intake came in strong as already announced on the FY23 CC
in April.
Q1 sales increased 26% yoy to € 20.6m (eNuW: € 18.6m), despite a low order
backlog of € 55m end of FY23. Q1 EBIT stood at € 0.6m (eNuW: € -1.3m), up
from last year’s Q1 (€ -0.9m). Growth was particularly driven by the Solar
(+24%) and Life Science (+50%) segments. Life Science recovered from a low
level in FY23 which was affected by a challenging macro environment and is
gaining traction again. For instance, the MEDLINE production system from
Singulus for the processing of contact lenses is steadily gaining
acceptance in the market (company news May 14). In FY24e, Solar should
again be the most important segment (eNuW: € 50m; + 28% yoy) thanks to CdTe
follow-up orders from CNBM as well as potential orders from Enel as they
start their new project in the US.
Order intake improved significantly to € 33.2m, a 136% increase yoy due to
the strong demand in the semiconductor segment. Furthermore, management
expects the order intake to stay at a similar high level
for the second quarter.
Successful refinancing: The € 10m loan from Bank of Shanghai which expired
on May 9, 2024 was successfully refinanced at the end of April with
comparable conditions and a term of 12 months. In addition, Singulus is
discussing another € 10m loan from Bank of Shanghai to finance the
currently increasing working capital and repayment of debt tranches
maturing in FY24e.
Guidance confirmed: Management confirmed its guidance of € 120-130m sales
and EBIT in the low double-digit million range. However, despite the strong
order intake of € 33.2m in Q1, the outlook appears ambitious given the
difficult macro environment and the challenging situation of the solar
industry 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 for
the extraordinary income of € 12.1m in FY22 from a property sale).
Singulus midterm prospects remain intact with the potential of larger
orders from CNBM for CdTe thinfilm modules and a fast-growing μLED and
hydrogen business. Yet, as this is already reflected in the current
valuation, in our view, we reiterate HOLD with an unchanged PT of € 1.60
based on DCF.
You can download the research here:
http://www.more-ir.de/d/29771.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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The result of this research does not constitute investment advice
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