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Original-Research: Multitude SE - from NuWays AG

Classification of NuWays AG to Multitude SE

Company Name: Multitude SE ISIN: FI4000106299

Reason for the research: Update Recommendation: Kaufen from: 13.05.2024 Last rating change: Analyst: Frederik Jarchow

Solid Q1 figures ahead // Multitude to continue on growth path On Thursday, Multitude will report Q1Ž24 figures that should come in solid, but with room for sequential improvements until YE. Here is what to expect: Sales should come in at EUR 59m (+9% yoy, -6% qoq), mainly driven by the strong growth of the net loan book (NAR) to EUR 636m in FY23 (including c. EUR 576 loan to customer and c. EUR 60m attributable to warehouse lending) unfolding its full effect in Q1. We expect ferratum to have contributed some 84%, CapitalBox 13% and the new segment wholesale banking 3% to total sales. EBIT is anticipated at EUR 10.3m (+7% yoy, -16.3% qoq), following the higher topline and rather stable S&M expenses and personnel expenses as well as other operating expenses, compensating for impairments on loans (19% yoy, -15% qoq), that should come in higher than in Q1Ž23 due increased loan book. As interest expenses should should have increased by c. 10% yoy to EUR 7.7m (eNuW; -1% qoq), EBT should come in at EUR 2.8m (-4% yoy). While our estimates for Q1 imply a solid yoy growth in a challenging economic phase, further significant sequential improvements throughout the year are necessary to reach the FY24 EBIT guidance of EUR 67.5m (vs eNuW: EUR 57m). In our view, the guidance looks ambitious, but is not out of range assuming 1) further growth of the loan book, partially materializing throughout the remainder of 2024, 2) the strong growth momentum of CapitalBox as well as 3) opportunities around the new segment wholesale banking that already gained traction in FY23. That, paired with ongoing tight cost control, that the company already showed in FY23, unlocking scale effects (assuming ongoing topline growth as a result of the growing loan book and stable margins) as well as the fact that Multitude reached its guidance for the 3 rd consecutive year in FY23 give us additional confidence. As the stock is still trading at negative EV and a 3.4x PEŽ24, the growing, highly profitable, resilient and dividend paying company to look undebatable cheap. BUY with an unchanged PT of EUR 12 PT, based on our residual income model. Mind you that Multitude is one of our NuWays' Top Picks for FY24.

You can download the research here: http://www.more-ir.de/d/29713.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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Quelle: dpa-Afx