Original-Research: Multitude SE - from NuWays AG
14.08.2024 / 09:01 CET/CEST
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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 PEŽ25.
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
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1967511 14.08.2024 CET/CEST
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