GBC AG: CENIT AG | Rating: Buy

Original-Research: CENIT AG - von GBC AG

Einstufung von GBC AG zu CENIT AG

Unternehmen: CENIT AG
ISIN: DE0005407100

Anlass der Studie: Research Comment
Empfehlung: Buy
Kursziel: 20.05 EUR
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

Q1 2022: Revenues slightly up, earnings slightly down year-on-year; inorganic effects not yet included; we confirm our forecasts; price target changes due to higher WACC; BUY rating confirmed

The seasonal sales trend of CENIT AG is usually characterised by lower sales revenues in the first quarter, while the fourth quarter makes the largest contribution to sales. In the past six business years, the first quarter contributed 23.6% and the fourth quarter 27.4% to annual sales. This should also be the case in the current business year, especially since there were still pandemic-related restrictions at the beginning of the year. In this environment, CENIT AG succeeded in slightly increasing the previous year's sales by 3.5% to EUR 35.40 million (previous year: EUR 34.21 million). According to the company, this was due in particular to the increased consulting and service business, which rose significantly by EUR 1.25 million to EUR 10.27 million (Q1 2021: EUR 9.02 million) compared to the same period of the previous year. Among other things, orders from the aerospace sector contributed to this. In parallel, both sales of CENIT software and sales of third-party software remained almost unchanged compared to the previous year.

Despite a slight increase in sales, CENIT AG shows a slight decline in EBITDA to EUR 0.73 million (Q1 2021: EUR 0.83 million). The resulting increase in operating expenses is primarily due to the discontinuation of short-time working allowances, which reduced personnel expenses by around EUR 0.8 million in the first quarter of 2021. In addition, there was an increase in other operating expenses of EUR 0.37 million due to inflation. The fact that the operating result did not fall more strongly against this background was due to the renewed increase in gross profit by EUR 0.90 million. The declining development of EBITDA is also reflected at the level of the result for the period, which was below the previous year's value at EUR -0.60 million (Q1 2021: EUR -0.51 million) after minorities.

After the balance sheet date of 31 March 2022, CENIT AG acquired a majority interest in ISR Information Products AG ('ISR' for short). Although the consolidation is retroactive to 01.01.2022, the figures for the first quarter of 2022 do not yet include any inorganic effects. ISR Information Products AG is a full-service provider for analytics and process digitalisation with headquarters in Braunschweig. With its product portfolio, which comprises the business areas 'Analytics & Insights', 'SAP Information Management', 'Digital Operations' and 'Application Management', ISR supports customers in the design and implementation of analytical systems and digital end-to-end processes using cloud-based SaaS solutions. One such solution is ISR's 'Buildsimple', an A.I. platform for the cloud distribution of document management solutions.

With the announcement of the ISR takeover, the CENIT management had increased the forecast for the current business year 2022, which has now been confirmed in the Q1 reporting. Sales revenues of EUR 170 million and an EBIT of approximately EUR 9 million are still expected. We had already taken this into account in our forecasts in our research study (Anno) of 13 April 2022. Therefore, we are keeping our previous forecasts unchanged.

The input data of our DCF valuation model also remain unchanged. However, in view of the current interest rate development, we increase the risk-free interest rate to 0.40% (previously: 0.25%), resulting in a higher weighted average cost of capital WACC of 7.75% (previously: 7.60%). Solely due to this effect, the price target is reduced to EUR 20.05 (previously: EUR 20.60). We continue to give the rating BUY.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/24133.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,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm +++++++++++++++
Date (time) of completion: 12/05/2022 (08:09 am) Date (Time) first distribution: 12/05/2022 (09:30 am)

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

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