Original-Research: SYZYGY AG - von GBC AG

Einstufung von GBC AG zu SYZYGY AG

Unternehmen: SYZYGY AG
ISIN: DE0005104806

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 10.20 EUR
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann

9 months 2021: Turnaround successful; revenue and earnings development 'in line'; forecasts, estimates and target price confirmed

Based on the first nine months of 2021, Syzygy AG's sales revenues of EUR 44.66 million (previous year: EUR 40.69 million) were 9.8 % above the previous year's level and thus in line with our expectations. Although the gap in turnover caused by the Corona pandemic in the previous business year could not yet be completely closed, a new nine-month record was achieved at the EBIT level. In the previous business years, only the German companies had made a positive contribution to the result. After completion of the restructuring measures and the associated implementation of cost savings at the foreign companies, a positive contribution to earnings was also generated here for the first time in two years.

The fact that a new record was achieved with a Group EBIT of EUR 4.62 million (previous year: EUR 2.61 million) is also due to the cost savings implemented in the context of the Corona pandemic. As a result, sales and marketing costs as well as administrative costs, for example, are significantly below the pre-Corona level. Although it can be assumed that marketing costs will rise again in the future, Syzygy AG has a sustainably leaner cost structure overall.

Syzygy's management has confirmed its guidance with the publication of the nine-month report. The outlook remains unchanged for sales growth of around 10.0% and an EBIT margin of around 10.0%. Both geographic segments are expected to contribute equally to this. In view of the figures achieved in the first nine months of 2021, namely revenue growth of 9.8 % and an EBIT margin of 10.3 %, the company guidance is a very realistic scenario.

The foreign companies are likely to show higher growth dynamics, also on a full-year basis. In the last research study, we had already anticipated that the growth momentum of sales generated abroad would flatten out somewhat after an unusually strong performance in the first two quarters. This has occurred as expected, but we continue to assume that the budget increases from existing customers as well as the new customers acquired provide a good basis for a sustainable increase in turnover.

Parallel to this, the more stable business in Germany should benefit from an expansion of the business with existing clients as well as from the new clients already acquired. Worth mentioning here is the expansion of the mandate with Mazda Motors Germany, for which Syzygy is developing and implementing the communication strategy. New clients such as the Erwin Hymer Group, the Frankfurt Book Fair and Miles & More support the assumption of expected sales growth. For Miles & More, Syzygy AG is responsible for digital brand management, the further development of the Miles & More platform and shop management. In addition, the company is likely to benefit from the increasing digitisation needs of clients in the area of business consultancy. With the combination of consulting and technical implementation expertise, the company should be able to win new customers in this area as well.

Based on the reported revenue and earnings development as well as the confirmed corporate guidance, we also confirm our previous forecasts. For 2021, we continue to expect revenue growth of 10.0% and an EBIT margin of 10.3%. These are exactly the values that were already achieved after nine months. For the coming financial years, we assume that the growth dynamic will remain unchanged and, conservatively, we initially expect only slight improvements in the EBIT margin. We have made slight forecast adjustments at the level of the after-tax result. For 2021, we now assume a tax rate of 25.0% (previously: 28.3%), after no deferred taxes were recognised for the foreign companies in 2020. For 2022 and 2023, however, we increase this to 30.0% (previously: 28.3%).

The changes in the tax rate and thus the slight change in the after-tax forecasts have only a minor impact on the DCF model. Therefore, we confirm our price target of EUR 10.20 and, at a current price of EUR 6.12, continue to assign a BUY rating.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/23053.pdf

Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Date (time) completion german version: 05.11.21 (1:54 pm) Date (time) first transmission german version: 08.11.21 (9:30 am) Date (time) completion english version: 09.11.21 (10:29 pm) Date (time) first transmission english version: 09.11.21 (12:00 am)

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.