^ Original-Research: Singulus Technologies AG - from NuWays AG

14.11.2024 / 09:25 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 Singulus Technologies AG

Company Name: Singulus Technologies AG ISIN: DE000A1681X5

Reason for the research: Update Recommendation: Hold from: 14.11.2024 Target price: EUR 1.60 Target price on sight of: 12 months Last rating change: Analyst: Konstantin Völk

Final Q3 results out in line with prelims; chg. est.

Topic: Singulus released solid Q3 numbers in line with preliminary results (published on 7 November).

To recap: Sales increased 44% to EUR 20.3m from a low comparable base due to project postponements in FY23 and supported by a solid order backlog. Sales were particularly driven by the Life Science Segment with EUR 9.2m sales in Q3 (+131% yoy) and the Semiconductor segment (EUR 5.6m; +87% yoy). On the other hand, Solar declined by 23% to EUR 5.5m due to project postponements. In addition, decreasing solar module prices due to competitive pricing from China, impacts the competitiveness of European producers materially.

EBIT came in at EUR 0.6m, considerably above last year's numbers (EUR -4.9m in Q3'23) thanks to a favorable product mix towards the more profitable Semiconductor Segment. Already since the start of the year, Semiconductor has shown a strong uptick in demand, contributing EUR 31.6m in order intake during 9M'24 (45% of total order intake).

In addition, the company has several cost saving measures in place: Already in 2022 Singulus closed the Fürstenfeldbruck site, which saves the company c. EUR 2m in OPEX (as stated in the Q1'23 CC). For instance, R&D expenses decreased to EUR 3.6m in 9M'24 (vs. EUR 4.9m in 9M'23) and general administration costs decreased to EUR 6.1m (vs. EUR 6.4m in 9M'23).

Order intake increased 126% yoy to EUR 18.5m from a muted comparable base, leading to a solid order backlog of EUR 69m (vs. EUR 61m in Q3'23), driven by a strong demand in the Semiconductor segment.

Although Singulus' operating business is moving in the right direction, the company is still operating subscale and needs above EUR 95m sales (eNuW) to achieve profitability for net income on a sustainable basis. Furthermore, Singulus has an equity deficit of EUR -44.8m and its financing structure is heavily dependent on its largest shareholder (17%) and customer CNBM. Although the collaboration with the Chinese partner worked out well yet, it is still a major risk which deserves consideration before investing in the stock.

We reiterate HOLD with an unchanged PT of EUR 1.6 based on DCF.

You can download the research here: http://www.more-ir.de/d/31305.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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2030105 14.11.2024 CET/CEST

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Quelle: dpa-Afx