Original-Research: CR Energy AG - from NuWays AG
22.08.2024 / 09:06 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 result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
Classification of NuWays AG to CR Energy AG
Company Name: CR Energy AG
ISIN: DE000A2GS625
Reason for the research: Update
Recommendation: BUY
from: 22.08.2024
Target price: EUR 12.00
Last rating change:
Analyst: Philipp Sennewald
PT adjustment after issuance of bonus shares; chg.
CR Energy recently announced the inclusion of the bonus shares in the Open Market of the Frankfurt Stock Exchange as part of the successfully completed capital increase. As the bonus shares were issued at a ratio of 1:3, the company's share capital increased by EUR 17.6m to EUR 23.5m. For shareholders, the issuance of bonus shares is equal to a stock split, i.e. it is value-neutral and will cause no dilution of shareholdings.
Management opted for the bonus shares instead of paying out dividends this year with the aim to increase visibility and liquidity of the stock and thus the attractiveness of the share. Yet, we expect the company to start paying dividends again starting next year (eNuW: EUR 0.65ps). Like in previous years, shareholders will then most likely have the choice between a cash and a stock dividend.
Aside from this, the company looks set to continuously boast a strong operating performance, which should become visible with the release of the H1 report in September. In fact, with its three key holdings CR Energy is in an excellent position to benefit from the surging demand for affordable as well as sustainable housing. Mind you, CR's subsidiary Terrabau is among the pioneers of affordable housing solutions with a focus on East Germany's metropoles Leipzig and Berlin. Especially in Berlin, the company aims to focus on social housing going forward, which gets subsidized by the IBB (Berlin's development bank) with an interest-free building loan (30y) of up to EUR 2,000 per sqm as well as a cost subsidy of up to EUR 1,800 per sqm. Given Terrabau's cost-efficient construction method (i.e. serial construction), this should allow for significant margin upside going forward.
Furthermore, we expect subsidiary CR Opportunities to launch its first European Long Term Investment Fund (ELTIF) in H2. The fund shall be populated with properties from Terrabau's development projects. ELTIF's are closed-end funds, which are specifically designed for infrastructure investments. CR management intends to increase AuM by EUR 100m annually until 2027.
The stock remains a BUY with a new PT of EUR 12.00 (old: EUR 48.00) based on DDM. The lower PT is solely due to the higher share count following the issuance of the bonus shares.
You can download the research here: http://www.more-ir.de/d/30585.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
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1972743 22.08.2024 CET/CEST
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