Märkte & Kurse

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Original-Research: Multitude SE - from NuWays AG

14.08.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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:                       14.08.2024
     Target price:               EUR 12.00
     Last rating change:
     Analyst:                    Frederik Jarchow

Solid Q2 figures ahead // FY24 guidance to be approved

Topic: Multitude is seen to publish a strong set of Q2 figures with further
sequential growth yoy and qoq growth next week. Importantly, we do not see a
profit warning pending with Q2 figures. In detail:

  * Sales should come in at EUR 67.2m (20% yoy, 5% qoq), mainly driven by the
    strong growth of the net loan book (NAR) to EUR 680m (including c. EUR 600
    loan to customers and c. EUR 80m attributable to warehouse lending; vs. EUR
    658m in Q1). With EUR 56.6m ferratum should contribute most (84% of sales,
    15% yoy, 5% qoq), followed by CapitalBox with EUR 8.1m (12% of sales, 45%
    yoy, 5% qoq) and Wholesale banking with 4% of total sales (EUR 2.5m; 150%
    yoy, 9% qoq).

  * Anticipated EBIT of EUR 14.2m (22% yoy, 22% qoq), should result from the
    growing topline and lower S&M and personnel as well as lower other
    operating expenses, all overcompensating for impairments on loans that
    are seen up yoy at EUR 26.9m (32% yoy, -5% qoq), mainly caused by the
    growing loan book. As interest expenses are seen to come in higher at EUR
    9.4m (77% yoy, 8% qoq), caused by 1) the growth of the loan book and 2)
    the higher avg interest costs that move with a delay of c. 6-18 months
    (eNuW) to the ECB rate, EBT is seen at mere EUR 4.8m (-29% yoy, 60% qoq),
    leaving room for improvements.

Overall, Multitude should report a strong set of Q2 figures with further
sequential growth on both top-and bottom line. Still, further meaningful
loan book and topline growth paired with ongoing tight cost control
resulting in stable other OPEX is necessary to unlock ongoing scale effects
resulting in significant EBIT growth for the remainder of the year that is
the perquisite to reach the ambitious EBIT guidance of EUR 67.5m. Despite the
fact, that we do not see a profit warning pending, we conservatively expect
only EUR 61.4m EBIT in FY24 as of now, leaving room for improvements.

For a growing, highly profitable, resilient and dividend paying company the
stock looks undebatable cheap trading at only 4x PE´25.

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

You can download the research here: http://www.more-ir.de/d/30459.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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1967511 14.08.2024 CET/CEST

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