Original-Research: Multitude SE (von NuWays AG): Kaufen

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Original-Research: Multitude SE - from NuWays AG

Classification of NuWays AG to Multitude SE

Company Name: Multitude SE

ISIN: FI4000106299

Reason for the research: Update

Recommendation: Kaufen

from: 17.05.2024

Target price: EUR 12.00

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Frederik Jarchow

Solid Q1 figures // FY24 guidance approved; chg

Yesterday, Multitude reported Q1´24 figures above expectations, but still

with room for sequential improvements until YE. In detail:

Sales of EUR 64.2m (10% yoy, 1% qoq), was above the anticipated EUR 59.0m,

mainly driven by the stronger growth of the net loan book (NAR) to EUR 658m

(including c. EUR 589 loan to customer and c. EUR 68m attributable to warehouse

lending; vs. EUR 638m in Q4´23). With EUR 54.1m ferratum contributed most (84%

of sales, 13% yoy, 1% qoq), followed by CapitalBox (12% of sales, 17% yoy,

17% qoq) and Wholesale banking with 4% of total sales (EUR 2.3m; 190% yoy,

21% qoq).

EBIT came in at EUR 11.6m (32% yoy, -15% qoq), beating our expectation by 13%

(eNuW: EUR 10.3m), thanks to the stronger topline and lower S&M and personnel

as well as other operating expenses, all compensating for impairments on

loans that were up significantly (EUR 28.3m, 35% yoy, 6% qoq) vs eNuW: EUR

23.6m). Reasons for the lifted impairments were the ramped-up loan book on

the one hand, but also credit losses in certain CapitalBox markets. As

interested expenses also expanded by 48% to EUR 8.7m (vs eNuW: EUR 7.7m), EBT

of mere EUR 2.8m (-3% yoy, -30% qoq), left room for improvements.

Overall, Multitude reported a solid set of Q1 figures. While the sales

growth trajectory is fully intact marking a new record level, the

development of impairment is weighing on profitability. As management is

working on this issue with the highest priority, we see good chances for

improvements within the next quarters. That, paired with further topline

growth following the growth of the loan book in Q1, as well as the ongoing

tight cost control resulting in stable other OPEX should unlock significant

scale effects from Q2 onwards, allowing meaningful EBIT growth. Still, for

now, we conservatively expect EUR 61.4m EBIT in FY24, which is below the

approved management guidance of EUR 67.5m.

As the stock is trading at a 4.3x PE´25, the growing, highly profitable,

resilient and dividend paying company looks undebatable cheap.

BUY with an unchanged PT of EUR 12 PT, based on our residual income model.

Mind you that Multitude is one of our NuWays Alpha picks for FY24.

You can download the research here:

http://www.more-ir.de/d/29799.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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