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Original-Research: SYNBIOTIC SE - from NuWays AG
18.12.2024 / 09:00 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.
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Classification of NuWays AG to SYNBIOTIC SE
Company Name: SYNBIOTIC SE
ISIN: DE000A3E5A59
Reason for the research: Update
Recommendation: BUY
from: 18.12.2024
Target price: EUR 12.40
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
The new group continues to take shape; chg. est.
Topic: While SYNBIOTICs largest holding WEECO performs notably ahead of
expectations and the group added two new companies to its portfolio, it also
decided to terminate the ongoing integration of CannaCare Health due to
delays in the process on the back of missing financial information.
WEECO Pharma exceeding expectations. Since the de-classification of medical
cannabis as a narcotic drug at the beginning of April, the number of
patients is seen to have doubled to some 0.5-0.6m, strongly impacting the
overall demand, which in many cases outgrows supply. This is also visible in
the ytd sales development of WEECO. With EUR 6.75m sales at the end of
October, the company already surpassed its initial FY24 target of EUR 6m.
Management now anticipates annual revenues exceeding EUR 8m (eNuW: EUR 8.2m),
making WEECO the group's largest contributor (eNuW: 54% in FY24e).
While the integrations of WEECO and greensby are well on track, SYNBIOTIC
has announced that the planned contribution of CannaCare Health GmbH into
the group will not proceed. The decision stems from delays in finalizing the
fairness opinion and CannaCare's inability to provide up-to-date financial
information. Despite this, Frank Otto, CannaCare's principal shareholder,
will retain his position on SYNBIOTIC's board of directors and as key
shareholder. Positively, the lost sales of some EUR 2m in FY24e should largely
be compensated for by the strong operational development of WEECO.
New additions to the group. Through a capital increase, SYNBIOTIC now holds
15.1% of GOC NEXUS GmbH, which specializes in the decontamination of
cannabis products using advanced cold plasma technology. The company is also
developing international cannabis processing hubs. While this addition has
no immediate (material) impact on the group's P&L, the signed cooperation
agreement ensures de-bottlenecking within the medical cannabis supply chain.
Further, SYNBIOTIC acquired 50.2% of greensby, a central platform that
connects patients, pharmacies, telemedicine providers and consumers and
enables the comparison of cannabis products. Following its integration into
SYNBIOTIC, greensby will expand its range to include hemp products and
cultivation accessories for recreational cannabis, offering up to 4,000
products. While we expect only a marginal sales contribution for now, it
fits well into the group's strategic objective to grow along the value
chain.
We confirm our BUY rating with an unchanged EUR 12.40 PT based on DCF.
You can download the research here: http://www.more-ir.de/d/31559.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
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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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.
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2053367 18.12.2024 CET/CEST
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