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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: 17.05.2024 Target price: EUR 12.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow

Solid Q1 figures // FY24 guidance approved; chg Yesterday, Multitude reported Q1Ž24 figures above expectations, but still with room for sequential improvements until YE. In detail: Sales of EUR 64.2m (10% yoy, 1% qoq), was above the anticipated EUR 59.0m, mainly driven by the stronger growth of the net loan book (NAR) to EUR 658m (including c. EUR 589 loan to customer and c. EUR 68m attributable to warehouse lending; vs. EUR 638m in Q4Ž23). With EUR 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 (EUR 2.3m; 190% yoy, 21% qoq). EBIT came in at EUR 11.6m (32% yoy, -15% qoq), beating our expectation by 13% (eNuW: EUR 10.3m), thanks to the stronger topline and lower S&M and personnel as well as other operating expenses, all compensating for impairments on loans that were up significantly (EUR 28.3m, 35% yoy, 6% qoq) vs eNuW: EUR 23.6m). Reasons for the lifted impairments were the ramped-up loan book on the one hand, but also credit losses in certain CapitalBox markets. As interested expenses also expanded by 48% to EUR 8.7m (vs eNuW: EUR 7.7m), EBT of mere EUR 2.8m (-3% yoy, -30% qoq), left room for improvements. Overall, Multitude reported a solid set of Q1 figures. While the sales growth trajectory is fully intact marking a new record level, the development of impairment is weighing on profitability. As management is working on this issue with the highest priority, we see good chances for improvements within the next quarters. That, paired with further topline growth following the growth of the loan book in Q1, as well as the ongoing tight cost control resulting in stable other OPEX should unlock significant scale effects from Q2 onwards, allowing meaningful EBIT growth. Still, for now, we conservatively expect EUR 61.4m EBIT in FY24, which is below the approved management guidance of EUR 67.5m. As the stock is trading at a 4.3x PEŽ25, the growing, highly profitable, resilient and dividend paying company looks 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 Alpha picks for FY24.

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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