|
Original-Research: Multitude SE - from NuWays AG
Classification of NuWays AG to Multitude SE
Q3 with improved profitability // FY24 guidance confirmed; chg Topic: Multitude reported a strong set of Q3 figures with improved bottom-line and confirmed its FY24 EBIT guidance. Further, the company announced to continue with a new CEO from FY25 onwards and provided a guidance for FY25. In detail: Interest income increased to € 65.1m (11% yoy, 1% qoq vs eNuW: € 68.3m), thanks to strong growth in the SME banking to € 8.6m (4% qoq, 46% yoy, vs eNuW: € 8.3m) and in the Wholesale Banking to € 3.5m (25% qoq, 152% yoy, vs eNuW: € 2.8m). Consumer Banking topline improved only slightly by 4% yoy to € 52.9m. The net loan book (NAR – including debt investments of € 101m) grew to € 726m (4% qoq, 24% yoy, vs eNuW: € 720m). EBIT jumped to € 18.9m (13% qoq, 57% yoy), mainly driven by credit losses that decreased further to only € 21.5m (-10% qoq, 3% yoy, vs eNuW: € 26.6m) or 33% of sales, while S&M, personnel and other operating expenses remained stable. With interested expenses raising to € 12.8m (12% qoq, 99% yoy, eNuW: € 9.6m), we should have seen the peak here for the moment, expecting lower relative levels going forward. Still, EBT of € 6.2m (15% qoq, -2% yoy) is in line with expectations (eNuW: € 6.6m), carried by the lower credit losses. Overall, Multitude delivered another strong quarter thanks to further significant improvements in the risk management, visible in declining credit losses paired with ongoing tight cost control stabilizing OPEX. On the back of the 1) strong NAR over all segments, 2) credit losses to remain on moderate levels and 3) ongoing tight cost control, we see further meaningful EBIT improvements. Hence, the confirmed EBIT guidance of € 67.5m looks achievable. As interest expenses should have peaked in Q3, the newly introduced net profit guidance for FY25 of 23m looks achievable as well (eNuW: € 24.5m). Further, CEO and founder Jorma Jokela decided to step down as CEO of the Group at year end to focus i.e. on M&A and hand over to Antti Kuplainen (currently CEO of Multitude Bank) – a sensible move in our view. For a growing, highly profitable, resilient and dividend paying company 4.6x PE´25 looks dirt cheap. Consequently, we reiterate BUY with an unchanged PT of € 12, based on our residual income model. Multitude remains a NuWays Alpha pick. You can download the research here: http://www.more-ir.de/d/31319.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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
||||||||||||||||||||
2030703 15.11.2024 CET/CEST
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.
Special
