GBC AG: Coreo AG | Rating: Buy
Original-Research: Coreo AG - von GBC AG
Einstufung von GBC AG zu Coreo AG
Unternehmen: Coreo AG
ISIN: DE000A0B9VV6
Anlass der Studie: Researchstudie (Anno)
Empfehlung: Buy
Kursziel: 2.60 EUR
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann
- Acceleration of investment activities - Largest portfolio in the company's history acquired - Further investments expected
Coreo AG has made extensive new acquisitions in the current financial year 2021. While the past financial year 2020 was still characterised by the pandemic-related restrictions and thus only a low investment volume of EUR 3.3 million, the property acquisition in the course of the financial year 2021 to date has already amounted to approximately EUR 59 million according to our estimates. The prerequisite for the significantly increased purchase volume was the corporate financing obtained at the end of 2020. The company received a loan of EUR 23 million from a well-known investor, which was used to repay the outstanding 10 % option bond with a volume of around EUR 15 million and to expand the liquidity available for acquisitions.
The investments are the acquisition of two production sites and the administrative headquarters of a German listed automotive supplier. According to our assumptions, the purchase price is likely to have been around EUR 8.7 million. In addition, 89.9 % of the GmbH shares in an existing company were acquired in July 2021 by way of a share deal, comprising a total of 1,341 residential and 15 commercial units. This was the largest acquisition in the company's history. Assuming a rental yield that is normal for Coreo, the total portfolio value is likely to be slightly above EUR 50 million, although the purchase price in the share deal is likely to have been significantly lower. A significant part of the purchase price was paid in the form of the 1.45 million shares in MagForce AG held to date. According to our calculations, this should cover around EUR 6 million of the purchase price. The closing of this transaction is expected for the coming financial year 2022.
With the notification of 28 July 2021, the company also announced the change of the major shareholder. The previous major shareholder Apeiron Investment Group Ltd. announced that it had fallen below the 25% threshold and, in parallel, FLORA S.A., which specialises in real estate investments, published that it had exceeded this threshold. This change is to be understood as a further component of the more comprehensive focus on the real estate sector.
We have used the current property portfolio (including the acquisitions made in the current financial year 2021) as the basis for our forecasts and for our valuation of Coreo AG. In addition, we have assumed further investments. According to long-term investment planning, Coreo AG plans to expand the total residential and commercial property portfolio to EUR 400 - 500 million in the next four to five years. For our forecasts, we take a more conservative approach and, based on the current property portfolio of over EUR 100 million, expect new investments totalling EUR 110 million for the next three financial years.
For 2021, we expect a slight increase in rental income and, in view of the reletting of properties in the Hydra portfolio and initial successes in asset management following the acquisition of the LEG portfolio, a notable valuation result. From the coming financial year, a strong increase in rental income should be generated with the addition of the already acquired extensive property portfolio and expected new investments. This should increasingly become the most important revenue component from 2023 onwards. Already for 2021, we assume an EBIT of EUR 4.92 million, which should increase to EUR 13.83 million (FY 2022e) and EUR 17.17 million (FY 2023e) in the coming financial years.
In principle, Coreo AG should benefit from the favourable market conditions after the implementation of the financing measures and the overall improved access to acquisition funds. The increasing size of the property portfolio, which forms the basis for a higher rental volume, should ensure that the already falling financing costs improve further. With the acquisitions made, the company has taken an important step towards increasing the sales volume and a disproportionate development of earnings.
Within the framework of our DCF valuation model, we have determined a new target price of EUR 2.60 (previously: EUR 2.35). On the one hand, the rollover effect had the effect of increasing the price target. On the other hand, the significant investments made resulted in a slight reduction of the company-specific beta. We continue to give the rating BUY.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/22819.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: (4,5a,5b,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date and time completion (german version): 18.08.2021 (5:46 pm)
Date and time the first distribution (german version): 19.08.2021 (10:00 am)
Date and time completion (english version): 23.08.2021 (09:01 am)
Date and time the first distribution (english version): 23.08.2021 (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.
