Original-Research: Singulus Technologies AG - from NuWays AG
29.08.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
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Classification of NuWays AG to Singulus Technologies AG
Company Name: Singulus Technologies AG ISIN: DE000A1681X5
Reason for the research: Update
Recommendation: HOLD
from: 29.08.2024
Target price: EUR 1.60
Last rating change:
Analyst: Konstantin Völk
Final Q2 numbers out // successful financing agreement
Topic: Singulus released its final Q2 report yesterday in line with preliminary numbers. Even more importantly, the company has successfully concluded an agreement with CNBM on the restructuring of the financing in August 2024.
To recap: Q2 sales decreased by 21% to EUR 20.1m from a high comparable base. Thanks to a stronger contribution of the Semiconductor segment, the Q2 gross profit margin increased to 33.8% (Q2'23: 25.2%). OPEX remained roughly on last year's level, leading to a Q2 EBIT of EUR 0.5m, up from EUR 0.2m in Q2'23. Order intake stood at a solid EUR 19.1m (+91% yoy), but was below our expectations after the dynamic demand in the first quarter. H1 order intake came in at EUR 52.3m (+117% yoy), leading to EUR 70.4m in order backlog.
Sales in the Semiconductor segment increased to EUR 3.7m (Q2'23: EUR 2.1m) due to a strong demand for TIMARIS coating machines. Semiconductor order intake came in at a solid EUR 24.4m in H1'24 (47% of total H1 order intake), which should lead to a positive effect on gross margins in the future. Solar sales decreased 22% to EUR 12.3m due to project postponements. However, CNBM is further investing in CdTe and as stated in the CC, more CSS machines will be delivered to CNBM in the near future. Life Science sales came in at EUR 4.1m (Q2'23: EUR 7.5m).
Reorganization of financing completed: CNBM is directly and indirectly the counterpart for EUR 30m of Singulus' outstanding debt - directly as provider of a EUR 20m loan, granted in two tranches in March and April 2023 that were callable on August 4 th and on September 28th and indirectly as guarantor for another EUR 10m granted by Bank of Shanghai. In order to secure further financing, Singulus has now successfully negotiated the reorganization of the EUR 20m loan. Further, CNBM guarantees Singulus to cover its financial obligations until March 31st 2025. Nevertheless, Singulus' Going Concern beyond March 2025 looks still questionable and would require further improving operations in our view.
As soon as long-term financing is secured, one should refocus again on the improving operating business with new innovative product solutions such as in the field of micro-LED, hydrogen and solid-state batteries, which have the potential to bring Singulus back in the black.
We change our rating to Hold (old: Under Review) with a PT of EUR 1.60 based on DCF
You can download the research here: http://www.more-ir.de/d/30665.pdf For additional information visit our website: www.nuways-ag.com/research
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1977255 29.08.2024 CET/CEST
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