Q3 sales increased by 19% yoy to € 245m (eNuW: € 242m; 9M: € 746m, +12% yoy), driven by a € 17m sales effect of performance fees (vs. Q3'23: € 0.1m) but also a solid underlying development (sales ex performance +11% yoy). The competence field Wealth drove sales by 36% yoy to € 140m (eNuW: € 128m; € 123m sales ex performance fees, up 19% yoy), whereas Life & Health sales also increased by 2% yoy to € 68m (eNuW: € 70m) followed by P&C sales of € 35m, up 2% yoy (eNuW: € 35m). Noteworthy, the RE business saw a two-faced development, where RE brokerage rose by 191% yoy and 17% qoq to € 10m (eNuW: € 8m) but RE development remained nonexistent at € 0m sales (eNuW: € 1m).
EBIT expanded sharply by 128% yoy to € 17.8m (eNuW: € 18.2m), benefiting from a € 11m performance fee EBIT contribution (eNuW; c. 65% incremental margin). On the other hand, underlying profitability (EBIT ex perf. fee effect) decreased by 13% yoy due to higher OPEX (+15% yoy).
Guidance confirmed: FY'24 guidance (EBIT: € 85-95m) confirmed: Based on a € 66m EBIT per 9M, the guidance implies a Q4 EBIT in the range of € 19-29m (eNuW: € 28m, not including significant performance fees). This also compares well to previous periods' EBIT of € 23m (Q4'22, no perf. fees) and € 25m (Q4'23, no perf. fees), which were both burdened by goodwill impairments in the RE segment (€ 3m in Q4'22; € 4m in Q4'23). Consequently, we are positioned at the top end of the guidance (eNuW: € 95m). Moreover, should capital markets continue to perform well until Y/E'24e, performance fees could be in the cards and the guidance could be overachieved. For next year, MLP's mid-term targets (EBIT € 100-110m; eNuW: € 102m) will become the FY'25e guidance and new mid-term targets are to be published with FY'24 results in March '25.
Dividend increase after 3 years likely: Based on MLP's targeted pay-out ratio of 50-70% (eNuW: 60%) and EPS estimate of € 0.64, the FY'24e dividend should amount to € 0.36 per share, implying a 20% yoy increase and a current yield of 6%. Mind you, that the dividend is tax free according to § 27 KStG.
All in all, MLP remains fully on track to achieve this and next year's targets this year and should continue to show improvements going forward thanks to its well diversified business model with a large share of recurring revenues. Therefore, we keep MLP in our NuWays' Alpha List and reiterate our BUY recommendation with unchanged PT of € 12.00, based on FCFY'24e.
ISIN: DE0006569908
