Märkte & Kurse

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Original-Research: MLP SE - from NuWays AG

07.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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 MLP SE

     Company Name:                MLP SE
     ISIN:                        DE0006569908

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        07.05.2025
     Target price:                EUR 13.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

Q1 preview: Improving RE to drive a solid start into 2025

Topic: MLP will publish Q1 results on 15th May, which should show a solid
start into the year. In detail:

Total sales are seen to grow by 8% yoy to EUR 307m, which should be driven by
an expected rebound in real estate (sales from RE Brokerage: EUR 14m, up 358%
yoy) and accompanied by a sales growth from Loans and Mortgages.
Furthermore, we expect Non-Life Insurance brokerage to pick up momentum
again and grow by 8% yoy to EUR 105m sales, based on the strong growth of
MLP's insurance portfolio volume (FY'24: EUR 751m, +9% yoy). On the other
hand, sales from Wealth Management should show less momentum (eNuW: EUR 90m
sales, +4% yoy), weakened by the volatile capital market dynamics visible in
Q1 but supported by a higher AuM base of EUR 62.5bn (eNuW; +5% yoy; -1% qoq).
Unsurprisingly, we expect Interest Income to decline by 9% yoy to EUR 20m
sales, due to recent ECB rate cuts, however still at comfortable levels.

EBIT is expected to grow by 13% yoy to EUR 42m (13.6% margin, up 0.6pp yoy),
mainly due to the slight change in revenue and thus cost mix. First,
Deutschland.Immobilien (with a negative EUR 4.2m EBIT in Q1'24), is now
expected break even (eNuW: EUR 0m EBIT), as MLP should have reduced RE
development
significantly and incurred less sales and also much lower development costs.
Secondly, the lower interest rate environment should have a slight effect on
MLP Banking AG's still solid EBIT margin (eNuW: 23.2%, down 2.2pp yoy). Here
MLP has also reduced the interest rate paid to customer on overnight (1% p.a
vs. prev.1.5%) and time deposits (1.75% p.a. vs. prev. 2.75%), which should
protect the net interest margin. Thirdly, FERI should report only minor
performance fees of EUR 1m (eNuW; vs. EUR 3.8m in Q1'24) which should have also
left a mark on profitability, with an expected EBIT margin of 11.1% (down
1.8pp yoy). However, by excluding the performance fees, underlying
profitability (EBIT margin ex performance fees) at FERI should have risen by
0.9pp yoy to 10.2%, thanks to a higher AuM base and thus economies of scale
and operating leverage. Finally, Industrial Brokerage should report a 7%
higher EBIT of EUR 10m (55.6% margin, +0.2pp yoy), on the back of better cross
selling within the MLP group.

MLP's diversified business model should once again prove, that MLP is able
to show stable growth and sound margins. Therefore, we reiterate our BUY
recommendation and confirm MLP's position in our NuWays Alpha List with an
unchanged PT of EUR 13.00, based on SOTP and FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32484.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

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
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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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2131570 07.05.2025 CET/CEST

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