Outlook for 2024: A promising bet After two transition years that were characterized by risks associated with the liquidation of the Entertainment Ldt. as well as customer claims in Austria and Germany on the one hand and restructuring and stabilizing the remaining business on the other hand, we see good chances that we have seen the trough in  [ … ]

This morning Kontron provided an assessment of FY23 and an outlook for FY24. After having raised its guidance twice in 2023, preliminary figures indicate yet another beat of its planned sales of EUR 1.2bn and net profit of EUR 72m. For FY24, Kontron anticipates robust business, projecting a significant increase in net income to over EUR 87m and sales surpassing EUR 1.4bn. Both, the company’s FY23 prelim. results and outlook for FY24 are in-line with AlsterResearch / market expectations and hence should support Kontron’s equity story. In view of AlsterResearch, the company's strategic focus on IoT is finally paying off with the full potential just slowly starting to unfold. Kontron remains a top pick for the experts, offering almost 60% upside potential, which is why AlsterResearch reiterates to BUY with unchanged PT of EUR 34.00. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Suedzucker (SZU) has announced a good set of Q3 2023/24 numbers. High sugar prices were the key growth driver for both revenues and operating results, which offset the impact of softer volumes. Management has maintained its FY 2023/24 guidance, which is comforting, despite expected volatility in the target market due to the ongoing war in Ukraine. Earlier, in December 2023, SZU announced its intention to delist CropEnergies AG, the European market leader in renewable ethanol, which should help the company accelerate its 2026 PLUS growth strategy, which focuses on the growth areas of plant-based proteins and bio-based chemicals. The delisting should also simplify SZU’s capital market profile, reduce complexity. Having full ownership of CropEnergies offers significant strategic advantages for SZU. AlsterResearch reiterates its BUY rating with an unchanged PT of EUR 17.00. The full update can be downloaded under https://www.research-hub.de/companies/Suedzucker%20AG

Strong order intake to start transitionary 2024e This week, USU announced to have won two public sector framework contracts to start the year on a positive note: (1) Germany’s Federal Employment Agency (BA) commissioned USU for its TEBIT (Technical Inventory Management System IT) project. The TEBIT system of the BA is based on the USU Val [ … ]

Rosenbauer is back on track with a record high in order intake Caused by supply chain issues and raw material price inflation, Rosenbauer’s operating result turned negative during FY’22. However, Rosenbauer successfully managed the operating turnaround and delivers positive results again since Q2 2023. Thanks to Rosenbauer having do [ … ]

AY reported a 0.5% YoY decline in sales performance in Q3 due to a late start to the fall/winter season. Germany was a major drag on sales due to a deterioration in consumer sentiment. Despite lackluster top-line development, the company had a positive operating performance, marking its second positive quarter in FY 2023/24. This was supported by a notable improvement in gross margin. Fulfillment and marketing costs were significantly reduced, resulting in an adj. EBITDA of EUR 19.8m. The company remains cautious despite positive current trading and narrows its revenue outlook. However, management implied accelerating growth even in an unsupportive environment. AlsterResearch confirms the PT of EUR 7.00 and the BUY rating with minor estimate adjustments. The full update can be downloaded under https://www.research-hub.de/companies/ABOUT%20YOU%20Holding%20SE

Rational reported preliminary results for FY23, surpassing both consensus and AlsterResearch expectations. The company achieved a 10% yoy growth in sales, reaching EUR 1.13bn. Strong year-end business and an additional order from an Asian chain customer contributed to this success. Earnings were bolstered by favorable conditions, resulting in a FY23 EBIT of EUR 277m, also surpassing expectations. Lower input costs and logistics expenses contributed to a FY23 EBIT margin of around 24.5%. Despite mixed performances in product groups (iCombi growing by 12% and iVario declining by 8%), Rational's robust business model, allowing for price increases, led to outstanding results. With an upgrade in price target to EUR 650.00 (old EUR 630.00), AlsterResearch maintains its HOLD rating as the experts see the stock fully valued. Factors to watch include the FY23 results presentation, FY24 guidance, and a dividend proposal of at least EUR 13.50 per share (eAR). The full update can be downloaded under https://www.research-hub.de/companies/research/RATIONAL%20AG

The German used car market, Europe’s and AUTO1’s major market, has slowed down in December, according to the latest figures from KBA (Kraftfahrtbundesamt). Reregistrations of used cars showed only a slight growth of 1.2% yoy in December, following +8.7% yoy in November and +17.2% yoy in October. The German used car market showed some recovery vs 2022 from a unit perspective but still well below historic levels. Looking at 2024, the German association ZDK (German motor trade association) expects re-registrations to increase to 6.2m, reflecting a 3% yoy growth. Due to ageing fleets and the reluctance to buy, AlsterResearch’s analysts lowered estimates reflect a more cautious stance. AlsterResearch’s analysts continue to believe that AUTO1 will continue to improve efficiency and profitability goals. AlsterResearch lowers the PT to EUR 9.00 (old: EUR 9.30), but confirm to BUY. The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Redcare Pharmacy revealed robust preliminary sales for Q4 and FY23, propelled by the inclusion of Swiss MediService, leading to record figures at the upper end of the EUR 1.7-1.8bn guidance range. Q4 sales surged by 62.1% yoy to EUR 531m, with Swiss MediService contributing EUR 130m. Organic growth reached 22.5% yoy, driven by high demand for both non-prescription and prescription products which however reflects a slightly fading organic growth momentum in Q4 (FY org. sales up 24% yoy). Full-year Group sales hit EUR 1.8bn, a remarkable 49% yoy increase, slightly surpassing estimates. Redcare's active customer base grew 25% yoy to 12.5m. Despite positive indicators, concerns arise over decelerating organic growth, prompting AlsterResearch’s analysts to downgrade from HOLD to SELL. AlsterResearch’s PT of EUR 120.00 is being maintained. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

In FY23, Rubean reported consolidated annual revenues exceeding EUR 1m, reflecting a 20% yoy growth driven by a surge in users of its PhonePOS payment solution. The company's indirect sales approach through partners like BBVA and Sparkassen contributed to this success. Despite positive strides, results fell short of the “soft” 2023 revenue target of EUR 2m. Rubean however remains optimistic about 2024, anticipating strong user growth amid a contactless payment market boom. However, financial concerns persist with expected losses in 2023 (eAR), despite reduced operating costs. Rubean's future success hinges on achieving hyper scaling for positive cash flow, prompting a HOLD recommendation with an unchanged price target of EUR 7.00. The full update can be downloaded under https://www.research-hub.de/companies/Rubean%20AG