^ Original-Research: Multitude SE - from NuWays AG

23.08.2024 / 09:02 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Multitude SE

Company Name: Multitude SE ISIN: FI4000106299

Reason for the research: Update Recommendation: BUY from: 23.08.2024 Target price: EUR 12.00 Last rating change: Analyst: Frederik Jarchow

Q2 with improved profitability // FY24 guidance confirmed

Topic: Multitude reported a strong set of Q2 figures with improved bottom line, above our estimates. Further, management confirmed its FY24 EBIT guidance. In detail:

* Interest income came in at EUR 64.7m (16% yoy, 1% qoq), below our estimates of EUR 67.2m, due to a lower Consumer Banking topline (-1% qoq, 9% yoy, vs eNuW: EUR 56.6m) overcompensated by the strong growth in the SME banking to EUR 8.3m (8% qoq, 47% yoy, vs eNuW: EUR 8.1m) and in the Wholesale Banking to EUR 2.8m (22% qoq, 183% yoy, vs eNuW: EUR 2.5m). The net loan book (NAR) grew only slightly to EUR 594m (1% qoq, 15% yoy, vs eNuW: EUR 600m), while the debt investments (Wholesale Banking) increased significantly to EUR 103m (51% qoq, 69% yoy, vs eNuW: EUR 80m).

* EBIT jumped to EUR 16.8m (45% qoq, 44% yoy), mainly driven by lower impairments that are back on track at only EUR 23.8m (-16% qoq, 17% yoy, vs eNuW: EUR 26.9m) or 36.9% of sales, while S&M, personnel and other operating expenses remained stable. As anticipated, interested expenses came in higher at EUR 11.4m (31% qoq, 115% yoy, eNuW: EUR 9.4m), caused by 1) the growth of the loan book, 2) the higher avg interest costs that move with a delay of c. 6-18 months (eNuW) to the ECB rate and 3) a EUR 1.4m bond-related one-off. Still, EBT of EUR 5.4m (80% qoq, -21% yoy), carried by the lower impairments, beat our expectation (eNuW: EUR 4.8m).

Overall, Multitude delivered a strong Q2 with improved risk management visible in declining impairments and ongoing tight cost control resulting in stable OPEX. While the Consumer Banking is currently the only EBIT contributor, we expect the strong growth of the loan book in the SME and Wholesale Banking to materialize within the next quarters resulting in meaningful EBIT contribution. With that, the confirmed EBIT guidance of EUR 67.5m looks achievable. Nevertheless, we play it safe expecting only EUR 61.4m EBIT in FY24 as of now, leaving room for upgrades.

For a growing, highly profitable, resilient and dividend paying company the stock still looks undebatable cheap trading at only 4x PEŽ25.

BUY with an unchanged PT of EUR 12 PT, based on our residual income model. Hence, Multitude remains one of our NuWays Alpha picks for FY24.

You can download the research here: http://www.more-ir.de/d/30601.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 ++++++++++ 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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1973565 23.08.2024 CET/CEST

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Quelle: dpa-Afx