Märkte & Kurse

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Original-Research: LION E-Mobility AG - from NuWays AG

04.04.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to LION E-Mobility AG

     Company Name:                LION E-Mobility AG
     ISIN:                        CH0560888270

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        04.04.2025
     Target price:                EUR 3.20
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Weak Q4 prelims, op. trough should have passed; chg.

FY24 preliminary sales came in at a mere EUR 16.9m, implying a 70% yoy decline
(falling short of our EUR 33.2m estimate) as a result of a strongly declined
sentiment across the company's most important end markets, storage solutions
and mobility. The latter was strongly impacted by weakened demand for end
products (e.g. electric mini buses), falling battery prices with the
resulting "wait and see" mentality of customers but also several
insolvencies. Preliminary Q4 sales stood at only EUR 4.5m, down 78% yoy.

FY24 prelim. EBITDA was negative at EUR -4.2m as a result of the negative
operating leverage but also development work for the new chemistry cells,
especially NMC+ (eNuW ~ EUR 1.5m). The EUR 1.9m positive EBITDA figure in Q4 can
be explained by book gains related to the divestment of LION's stake in TÜV
SÜD Battery testing. Also, during the earnings call, management highlighted
renegotiated supplier contracts, which positively impacted the group's gross
margin and should be sustainable going forward.

Good start into the year. Positively, it seems like the company has passed
the market's trough as reflected by the good start into the year with EUR 6.4m
sales (vs. EUR 1.2m in Q1 2024) and a "clearly positive EBITDA" (vs. EUR -2.6m
in Q1 2024). This positive momentum is expected to persist throughout FY25
as management guides for EUR 28-35m sales (eNuW: EUR 32m) and positive EBITDA
(eNuW: break-even).

Portfolio expansion ongoing. LION will deliver first orders of its new
higher energy density battery pack (NMC+) in April, with a further ramp up
throughout 2025. With this, the company will also introduce "narrow packs",
increasing the addressable markets. During the earnings call, management
also presented a new project. As per request from a major German truck OEM,
LION is working on a 540kWh battery for trucks that can charge >400km range
within the legally required 15 minute break of truck drivers.

Immersion cooled batteries retain game changer potential. With last year's
Q3 results, management shared promising testing results of the "LIGHT
Battery". Despite some delays (potential series application), the prospects
remain significant. Targeting only PHEV and BEV cars with > EUR 100k selling
prices, the market should reach up to EUR 1.4bn by 2030. Assuming further
positive testing results, first small testvolumes could already impact
LION's 2026 P&L, in our view. This should serve as proof-of-concept and
hence justify the inclusion within our long-term growth estimates.

BUY with a new EUR 3.20 PT (old: EUR 3.60) based on DCF.

You can download the research here: http://www.more-ir.de/d/32162.pdf
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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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2111684 04.04.2025 CET/CEST

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