Märkte & Kurse

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Original-Research: Singulus Technologies AG - from NuWays AG

19.07.2024 / 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
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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:             Under Review
     from:                       19.07.2024
     Last rating change:
     Analyst:                    Konstantin Völk

Going Concern at risk // preliminary Q2 figures out; chg. est.
Topic: Singulus released its preliminary Q2 numbers with sales slightly
below and EBIT in line with our estimates. Even more importantly, financing
of the company is currently unsecured, jeopardizing the Going Concern, which
leads us to suspend our rating.

Q2 sales came in at EUR 20.1m, (-21% yoy, -2.4% qoq) below our estimates of EUR
22.5m (eNuW). With EUR 19.1m in order intake, demand in Q2 fell short of our
expectations (-43% qoq; eNuW: EUR 30m). Order backlog decreased slightly
(-1.7% qoq) to EUR 70.4m but remains at a solid level. EBIT came in at solid EUR
0.6m (vs EUR 0.2m in Q2´23, vs eNuW: EUR 0.5m), thanks to several cost-cutting
measures.

Guidance revised. Management cut its FY24e sales guidance from EUR 120-130m to
EUR 95-105m (eNuW old: EUR 97m) and EBIT from "low double-digit EUR m" to EUR
3.0-6.5m (eNuW old: EUR 0.2m). As flagged in our last update, the profit
warning was already well anticipated. However, the soft order intake put
also a question mark behind the new guidance and should burden top- and
bottom line for the remainder of the year. We hence conservatively expecting
only EUR 85.7m in sales and EUR -1.9m in EBIT in FY24e.

Financing beyond August not yet secured. CNBM is directly and indirectly the
counterpart for EUR 30m of Singulus' outstanding debt - directly as provider
of a EUR 20m loan, granted in two tranches in March and April 2023 that are
callable on August 4 th and on September 28th and indirectly as guarantor
for another EUR 10m granted by the Bank of Shanghai. In order to secure the
financing beyond August/September, Singulus has negotiated with CNBM the
reorganization of the EUR 20m for months but has so far not reached an
agreement yet. As a result, the company has requested CNBM to provide a
solution for further financing by August 23rd . Further, Singulus is in
parallel discussions with Bank of Shanghai regarding another EUR 10m loan with
CNBM as guarantor. Still, Singulus has not come to a successful agreement
yet.

Going Concern at risk. In the case that CNBM will reject to support further
financing, a Going Concern of the company is at risk in our view. In light
of the depency of CNBM from Singulus 1) as a supplier especially for Close
Spaced Sublimation (CSS) machines in the production of CdTe solar modules
and 2) as a shareholder, holding 16.75%, we see a certain likelihood that
CNBM will be constructive in the end. However, as the financing and with
that the Going Concern is at risk, we take the stock under review until the
Going Concern of the business is secured.

You can download the research here: http://www.more-ir.de/d/30253.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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1949625 19.07.2024 CET/CEST

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