^ Original-Research: Singulus Technologies AG - from NuWays AG

06.11.2024 / 09:01 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to Singulus Technologies AG

Company Name: Singulus Technologies AG ISIN: DE000A1681X5

Reason for the research: Update Recommendation: Hold from: 06.11.2024 Target price: EUR 1.60 Target price on sight of: 12 months Last rating change: Analyst: Konstantin Völk

Mixed Q3 preview // guidance looks ambitious

Topic: Singulus will release its Q3 report on November 13th. We expect solid top-line growth and bottom-line improvement. However, to become profitable, the company still has to overcome major obstacles.

Sales should increase 49% to EUR 21m (eNuW) from a low comparable base due to project postponements in H2'23. We expect EBIT to come in at EUR -1.5m, up from EUR -4.5m yoy, thanks to a higher sales contribution from the more profitable Semiconductor Segment and several cost-cutting measures. With EUR 24.4m order intake in H1'24e (47% of total order intake), the Semiconductor segment experienced a strong demand, which should benefit gross-profit margins in the coming quarters.

Several cost saving measures in place: Already in 2022, Singulus closed the Fürstenfeldbruck site, which saves the company c. EUR 2m in OPEX (as stated in the Q1'23 CC). Beyond that, Singulus is relocating parts of the assembly for thin-film solar-modules to China. This will not only reduce shipping costs but also save money as several components for solar modules are cheaper in China.

Ambitious FY guidance: Singulus revised its guidance in July to EUR 95-105m sales (old: EUR 120-130m) and an EBIT in the range of EUR 3.0-6.5m (old: low double-digit EURm). For us, the revised guidance still looks ambitious considering the current order backlog of EUR 70m (vs. EUR 67m H1'23) and the development of major projects. Hence, we expect only EUR 86m in sales and EUR -1.9m in EBIT for FY24e. Reorganization of financing: In August, the company announced the reorganization of its EUR 20m loan from CNBM. Further, CNBM guarantees Singulus to cover its financial obligations until March 31st 2025. Although CNBM has made a verbal promise to provide Singulus with the necessary liquidity beyond thatdate, 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, i.e. in the fields of microLED, hydrogen and solid-state batteries, which have the potential to bring Singulus back to black numbers.

We reiterate HOLD with an unchanged PT of EUR 1.60 based on DCF.

You can download the research here: http://www.more-ir.de/d/31191.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. Archive at www.eqs-news.com

---------------------------------------------------------------------------

2023285 06.11.2024 CET/CEST

°

Quelle: dpa-Afx