Original-Research: Cenit AG - von GBC AG

Einstufung von GBC AG zu Cenit AG

Unternehmen: Cenit AG

ISIN: DE0005407100

Anlass der Studie: Research Report (Anno)

Empfehlung: BUY

Kursziel: 19.75 EUR

Kursziel auf Sicht von: 31.12.2023

Letzte Ratingänderung:

Analyst: Cosmin Filker, Marcel Goldmann

- Clear corporate strategy for further growth in place

- Strong increase in sales and earnings expected according to "CENIT 2025"

- Slight price target increase

In the past business year 2022, CENIT AG achieved a significant increase in

sales of 11.0% to EUR 162.15 million (previous year: EUR 146.07 million) and

thus almost compensated for the sales dip of the past two business years.

ISR Information Products AG, which was acquired on 31 May 2022, made the

main contribution to the sales dynamics achieved. Since becoming part of

the CENIT Group, ISR had contributed sales of EUR 13.57 million. Without

inorganic effects, CENIT AG would have reported sales revenues of EUR 148.58

million and thus an organic sales increase of 1.7 %.

Broken down by individual types of revenues, it becomes clear that the

growth in revenues was achieved exclusively through the 39.9% increase in

consulting and service revenues to EUR 55.72 million (previous year: EUR 39.82

million). This includes ISR sales as well as catch-up effects after the

corona pandemic which had particularly affected this sales area. In

contrast, no growth was achieved in sales of third-party software and CENIT

software. It should be emphasised that the company has a high proportion of

recurring revenues of EUR 79.68 million, which account for 49.1% of total

revenues.

Despite the significant increase in revenues, EBIT improved only marginally

by 1.1% to EUR 6.31 million (previous year: EUR 6.23 million). This is due in

particular to increased costs in connection with the ISR acquisition,

increased travel and vehicle costs, higher project costs for new software

and one-off effects from the reorganisation of the company (approx. EUR 1.3

million). In addition, lower credits were received from tax incentives for

R&D in Germany and France, and finally, the discontinuation of the

short-time allowance, which was still around EUR 1.3 million in the previous

year, also made itself felt. The EBIT margin in 2022 was 3.9% (previous

year: 4.3%).

CENIT AG expects revenues of around EUR 180 million and an EBIT of more than

EUR 9.5 million for 2023. At the same time, the 'CENIT 2025' agenda was

confirmed, in which sales revenues of approximately EUR 300 million are

expected by 2025, accompanied by an increase in the EBIT margin to 8% to

10%. We consider the company's guidance for 2023 to be very realistic, as

the first full-year inclusion of ISR and the acquisition of mip in January

2023 can be expected to result in an increase in sales of approximately EUR

13 million. In addition to the implementation of various organisational and

strategic measures, inorganic growth continues to play a very important

role in the implementation of 'CENIT 2025'. According to the company's

plans, two to three company acquisitions are to be made annually.

Our revenue and earnings estimates up to the 2025 financial year are based

on short- and medium-term corporate guidance. For 2023, we expect revenue

of EUR181.61 million, rising to EUR233.91 million by 2025. We do not include

inorganic growth, which explains the revenue gap to the expected EUR300

million. Therefore, we expect the EBIT margin to reach the lower half of

the expected range by 2025, with an improving EBIT margin trend.

Within the framework of our DCF valuation model, we have determined a new

target price of EUR 19.75 (previously: EUR 18.20). The price target increase is

exclusively a consequence of the first-time inclusion of the 2025 estimates

in the concrete estimation period, which provides a higher basis for the

continuity phase of the DCF valuation model. An even higher target price

increase was countered by the increase in the weighted cost of capital to

8.99% (previously: 8.51%) as a result of the higher risk-free interest

rate. We continue to assign the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/26743.pdf

Kontakt für Rückfragen

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

Date and time of completion of the study: 06.04.2023 (09:58 am)

Date and time of first transmission: 06.04.2023 (11:30 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.

Quelle: dpa-AFX