Koenig & Bauer (SKB) published its Q1 24 figures lower than the prior year due to the challenging market environment. The company recorded a 10% yoy decline in revenues to EUR 253m in Q1 24, slightly below the consensus and mwb research’s estimate of EUR 258m. As a result of reduced order intake in the Sheetfed segment in Q3 23 as well as a lower percentage of completion achieved in production in the Banknote Solutions business unit yoy, revenue was down in the Sheetfed and Special segments but was slightly higher in the Digital & Webfed segment compared to the same period last year. Koenig & Bauer maintained the FY 24 guidance (given in February) at operating earnings of between EUR 15-30m and revenue of around EUR 1.3bn. The company maintained the medium-term target for revenue of around EUR 1.5bn and an EBIT margin of 6-7% in FY26. Mwb research maintains its BUY rating but cuts its PT to EUR 18.00 (old EUR 20.00) amid lower estimates. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Pyramid AG presented indicative Q1 results in an earnings call. Revenues are estimated at around EUR 16-17m (previous year: EUR 20m), whereby the comparison with the previous year is influenced by catch-up effects from the previous year. EBITDA will be around EUR 1m. AKHET, the custom server solutions business, is experiencing the strongest demand, driven by the ongoing AI boom, while Polytouch is struggling with some demand issues. Faytech, on the other hand, shows regional differences, with Germany and China growing dynamically, while the USA continues to struggle due to the loss of a major customer. The guidance for the current fiscal year remains cautiously optimistic with revenues of EUR 78-80m and EBITDA of EUR 5.6-5.8m. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 2.40, but slightly lower their estimates to the lower end of the guidance range. The full update can be downloaded under https://www.research-hub.de/companies/research/Pyramid%20AG

Fresenius Medical Care (FME) released Q1 24 numbers with sales of EUR 4.73bn (+0.4% yoy), in line with market expectations. Adjusted operating income vaulted 23% yoy to EUR 416m, primarily driven by FME25 savings and portfolio optimization partially offset by labor and inflationary cost increases. During Q1, the bottom line surged significantly as adjusted EPS grew to EUR 0.67 by 34.0% yoy, while reported EPS declined by 18% to EUR 0.24. FME has continued executing its business optimization plan and exited all its dialysis clinic operations in Latin America. Moreover, the company closed the divestment of its dialysis clinic network in Turkiye and the Cura Day Hospitals Group, Australia, in April 2024. FME reaffirmed its FY24 outlook and the management also reiterated the medium-term target of achieving an operating margin between 10-14% by FY 25. Based on the Q1 numbers, mwb research’s analysts see no need to adjust their estimates. FME delivered as expected, but the one-offs are still a drag. The analysts reiterate their HOLD recommendation with an unchanged price target of EUR 39.00. The full update can be downloaded under https://www.research-hub.de/companies/Fresenius%20Medical%20Care

WashTec reported reasonable numbers in Q1 24. Revenues declined 8% yoy, while order intake and order backlog fell yoy, due to a general drop in customer demand, particularly from key clients’ accounts in North America. However, the reported EBIT margin improved 10bps yoy on easing input costs and efficiency measures, and despite booking EUR 1m in one-offs, excluding which adj. EBIT and the margin were up 11% yoy (reported EBIT: -7% yoy) and 100bps yoy (to 6.1%), respectively. Management stated that sales funnel this year is a little back-ended, and hence, expects growth rates to pick up. It reiterated its FY24 guidance – revenues to remain stable yoy (+ 3%) and EBIT to increase in mid-single-digit % yoy, which, in the view of mwb research’s analysts, appears a bit light. This is understandable, given the tough macro environment, and reflects certain cooling effects WashTec is currently experiencing in the market. With a current FCF yield of 9%- 10%, mwb research believes the stock is undervalued. The analysts reiterate their BUY rating at an unchanged price target of EUR 53.00. The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Falk Raudies, CEO, and Christoph Schillmaier, CFO, of FCR Immobilien AG presented its results for 2023 in an earnings call conducted by mwb research. The company reported a solid business performance with a focus on portfolio optimization and lease indexation. The real estate portfolio remains attractively valued at 12.5x annual net cold rent, and sales were realized at an average of 6% above book value. mwb research’s analysts believe that FCR's business model, which is focused on German shopping centers and retail parks at secondary locations, remains attractive even in a rising interest rates environment. Its competitive advantages rests on economies of scale, access to capital and microlocation expertise. Despite a slight decline in FFO due to higher financing costs, the company remains solidly positioned. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 20.50. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG

Kontron reported impressive results in Q1 24, buoyed by its multiple recent acquisitions. Revenues grew 36% yoy on broad-based growth across segments and contributions from the recently acquired Katek. Order intake was up 4% yoy at EUR 371m, with the book-to-bill ratio comfortable at 1.04x. Order backlog remained high at c.EUR 1.8bn. EBITDA (adjusted for M&A costs) also grew 33% yoy on strong revenue performance, although the margin was a tad weaker (-30bps yoy). Given a good start to the year, management has confirmed its optimistic guidance for ‘24 (incl. Katek) for sales to grow 55% yoy to EUR 1.9bn and net profit to grow c.+30% yoy. Following the sale of the IT services business in ‘22, the face of the new Kontron is now slowly taking shape, focusing on megatrends such as digitalisation, AI, and sustainability, which the company will serve with IoT products. The recent acquisition of listed Katek appears to be on track and should provide the basis for additional top- and bottom-line growth in the future. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 34.00 and believe that the valuation discount vs peers offers an attractive entry opportunity. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Krones reported a good set of results in Q1 2024 that were broadly in line with consensus. Revenues grew 4% yoy to EUR 1.25bn on a high comparable base, underpinned by both organic and inorganic contributions. Meanwhile, steady price hikes helped counter inflationary pressure and drove a 50bps improvement in the EBITDA margin to 10.1%, with absolute EBITDA up 9% yoy to EUR 125m. Free cash flow was at a positive EUR 4m on better working capital management, despite high outflows towards acquisitions. Notably, management is confident of returning to normalised positive FCF in 2024 and reiterated its guidance for 2024. Overall, the demand for Krones products remains robust. This is reflected in its solid book-to-bill ratio of 1.19x in Q1 and a record-high order backlog of EUR 4.4bn at end-Q1, providing clear visibility until mid-2025. The company's strong market position as a leading filling and packaging machinery provider, bolstered by robust customer demand and acquisitions, supports the company’s positive outlook. mwb research reiterates the BUY rating with slightly revised price target of EUR 142.00 (old: EUR 140.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

Rational reported a good set of results in Q1 24. Sales growth remained steady at 1% yoy (similar to Q4 23) on a high comparable base and EBIT grew at a faster 7% yoy to EUR 71m on receding input and logistics cost pressure. Notably, iVario sales growth returned to the positive trajectory in Q1. Order intake remained at high levels and mirrored the revenue line of EUR 286m, translating to a healthy book-to-bill ratio of 1.0x. Order backlog stabilised at EUR 120m, c.11% of 23 revenues, reflecting faster order execution/comfortable delivery timelines. Management expects the demand environment to remain steady and reiterated its guidance for FY24, expecting volume and sales growth in the mid-to-high single-digit % range yoy, higher yoy gross profit, and a stable EBIT margin. mwb research’s analysts like Rational's business model, which allows price increases and high margins, owing to the lucrative after-sales business. Moreover, iHexagon – the recently introduced new product category targeting high-demand settings, such as canteens and fast-food outlets – could potentially make it another cumulative EUR bn+ blockbuster product. mwb research’s analysts reiterate their HOLD rating with unchanged PT of EUR 750.00. The full update can be downloaded under https://www.research-hub.de/companies/research/RATIONAL%20AG

Hugo Boss AG released reasonable set of numbers in Q1 2024. As expected, sales growth decelerated after a strong 2023 and amid persistent macro challenges, and came in line with consensus. The overall top-line growth of 6% yoy on a currency adjusted (c.a.) basis was underpinned by growth across brands, regions, and channels. As a positive surprise, EBIT (+6% yoy) beat consensus by 6% and the margin improved by a tad 10bps yoy to 6.8% on the back of sourcing efficiencies and cost containment measures. However, as flagged earlier, amid weak consumer sentiment, management expects to witness muted growth in the next few quarters. Hugo Boss reiterated its cautious outlook for 2024. The company’s focus is now on optimizing inventory levels/other working capital requirements and improve capex efficiency to reach its free cash flow target. After finetuning the model, mwb research’s analysts lower their PT slightly to EUR 80.00 (old: EUR 82.00). mwb research remains with BUY. The full update can be downloaded under https://www.research-hub.de/companies/research/Hugo%20Boss%20AG

Scout24’s Q1 slightly missed expectations in terms of revenues and ordinary operating (op.) EBITDA. The results for Q1 2024 were solid in the context of a challenging environment. Revenue performance (+12% yoy) was resilient across segments on strong traction in subscription revenues, positive pricing actions, and product upgrades. Meanwhile, as witnessed in the previous quarter, operating leverage from a favourable mix and strict cost control helped deliver 2.4ppt yoy improvement in the op. EBITDA margin to 58.4% in Q1. Despite softness in the German real estate market, Scout24 continues to benefit from healthy demand for its ImmoScout24 core products (listings: +9% yoy in Q1), along with growing agent memberships and private subscriber base. Management reiterated its outlook for 2024, guiding for revenue growth of 9%-11% yoy and op. EBITDA margins to expand to c.61%. It is also committed to attaining a dividend payout ratio of 30%-50% of adj. net income and pursuing share buy-backs in the medium term. mwb research’s analysts confirm their HOLD rating at a revised price target of EUR 70.00 (old: EUR 65.00). The full update can be downloaded under https://www.research-hub.de/companies/research/Scout24%20SE