Swiss Estates AG published preliminary figures for 2023. Despite good results, the figures were affected by a long-standing legal dispute with the Altra Foundation. However, it is positive that Swiss Estates is now finally free of these legacy issues and can focus on recurring income and the positive growth dynamics of the Swiss real estate market. Net rental income increased by 4.4% in 2023, slightly exceeding expectations. A new construction project in Rüthi, St. Gallen (95% leased as of the end of 2023) will generate additional momentum from 2024. The net asset value (NAV) has declined slightly by 3%, which leads mwb research’s analysts to adjust their estimates accordingly. This results in a new target price of CHF 7.50 (old: CHF 7.70), which leads mwb research to confirm their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Swiss%20Estates%20AG

Once again, the share of Delivery Hero is going through a rollercoaster ride. Rumors about the entry of an aggressive competitor, Meituan, have erased share price gains from the solid Q1 interim statement. Meituan has made a name by gaining substantial market share in Hong Kong thanks to an aggressive marketing and content strategy, as there are concerns that fierce competition could threaten DH’s leading market share. Meanwhile, the entry of Sachem Head Capital Management has been confirmed, as the activist investor has been proposed for a seat on Delivery Hero’s Supervisory Board. As mwb research’s analysts pointed out in an earlier note, Sachem has an impressive track record in creating shareholder value. mwb research’s analysts maintain their estimates and their PT of EUR 52.00. BUY. The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE

Nordex is seeing the first signs of a revival in its US business. Production at the US factory is gradually being restarted in order to meet the local production requirements of the Inflation Reduction Act. In addition, a new product is to be launched specifically for the US market and a new CEO and COO for North America have been appointed. As a result of the Inflation Reduction Act, business in the US has been severely curtailed for two years, with zero installations and orders in '23. After the record levels of recent years in Europe (order intake Europe '23 +60% yoy; Q1 '24 +108%), the return of the US could now lead to a completely different dynamic in total order intake. mwb research’s analysts reiterate their BUY recommendation and confirm their PT of EUR 22.00. mwb research’s analysts believe that Nordex will make the leap into long-term profitability in '24 as contract terms improve and order momentum remains strong. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.

Stratec reported weak set of results in Q1 2024 as already cautioned by management. Sales declined 16% yoy, adj. EBIT was down 18% yoy and the adj. EBIT margin deteriorated by 10bps yoy to 6.2% amid weak demand and under absorption of fixed costs. However, management expects significant rebound in sales growth in Q2 led by ramp-up of its development projects and services. That said, Stratec still estimates that end-customer demand for molecular diagnostic systems will remain subdued in 2024. Moreover, owing to lingering downstream effects of the pandemic, it sees customers’ order behavior to be marked by increased volatility, making 2024 a highly uncertain year. Therefore, it reiterated its guidance for the full year, expecting sales to remain flat or increase slightly yoy on a constant currency (c.c.) basis and an adj. EBIT margin of 10%-12% (2023: 10.3%). Even though Stratec seems to be making good progress with its cost-cutting measures (hiring freeze, reallocation of resources, price adjustments and optimization), mwb research’s analysts would like to wait for sustained revival in sales growth and margin improvement. The analysts maintain the HOLD rating on the stock at a slightly higher PT of EUR 40.00 (old: EUR 37.00). The full update can be downloaded under https://research-hub.de/companies/research/Stratec%20SE

Traton reported better-than-expected Q1 2024 results with revenues beating consensus by 5% and adj. EBIT surpassing market estimates by a notable 13%, mainly on strong beat at Scania. Q1 sales growth slowed to 5% yoy to EUR 11.8bn (vs +8% yoy in Q4 2023), as volumes declined by 4% yoy amid normalisation of demand. This was more than offset by a favourable product mix and price hikes. Meanwhile, adj. EBIT grew 18% yoy to EUR 1.11bn in Q1 and the margin widened by 1.0ppt yoy to 9.4% (+70bps qoq), led by efficiency gains. Reflecting a broader market normalisation, order intake in Q1 fell 3% yoy. In this backdrop, management confirmed its outlook for 2024 with a range of -5% to +10% yoy growth in unit sales and revenue and an adjusted EBIT margin of 8.0%-9.0%. Moreover, after a few quarters of restrictive order intake, how its order book develops over the course of 2024 is to be seen. The share price has risen 69% yoy and valuations appear fair. mwb research’s analysts maintain their HOLD rating with an unchanged target price of EUR 35.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

Yesterday, Delivery Hero (DH) published its annual report for FY23. While the company has been able to cut losses, it got on the verge of generating positive operating CF. At the same time, DH published Q1 2024 data, seeing an upturn in momentum. While Europe, MENA and Integrated Verticals (Dmarts) showed continued strong growth, Asia seems to be on track to recover from (post-)pandemic impacts. On the back of the positive results, the company upgraded its FY24 outlook for total segment revenue growth. mwb research’s analysts have adjusted their model and estimates to reflect the positive business trends, which prompts mwb research to increase the PT to EUR 52.00 (old: EUR 48.00) and reiterate to BUY. Given the positive share price development in the past weeks, profit-taking is not surprising. The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE

Vossloh's first-quarter performance was characterized by steady growth, with sales reaching EUR 269m, up almost 5% from the year-earlier level. While some segments such as Lifecycle Solutions and Tie Technologies flourished, others such as Fastening Systems were slightly down. Impressively, Q1 EBITDA increased by 15% yoy to EUR 31m and EBIT reached around EUR 18m, marking a decade high for Q1. Order intake remained robust and exceeded last year's levels, particularly in markets such as the USA and Italy. With an order backlog of more than EUR 800m, Vossloh's outlook for FY24 remains optimistic, with sales of EUR 1.16-1.26bn and EBIT of EUR 100-115m. With the Q1 print in, mwb research’s analysts see upside potential to their numbers and hence reiterate the BUY recommendation with an unchanged PT of EUR 52.00, implying a 18% upside. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

Kion Group’s Q1 2024 revenues beat consensus by a marginal 1%, while adj. EBIT was 4% better than expected on a better mix at new trucks business and healthy service business share. The top-line grew 3% yoy to EUR 2.86bn, as growth in the Industrial Trucks & Services (IT&S) business was largely offset by a decline in Supply Chain Solutions (SCS). However, order intake of EUR 2.44bn (+2% yoy) disappointed, falling short of consensus by 7% on lower truck bookings in the Americas, though intake in Asia Pacific was robust and that in EMEA was broadly stable. Amid expectations of mixed demand across regions, the company had issued cautious guidance for 2024, giving a wide yoy range for revenues (-2% to +5% yoy) and adj. EBIT (flat to +19% yoy; EUR 790m-EUR 940m), which it confirmed. mwb research’s analysts are optimistic on IT&S business benefitting from easing supply chain and agility measures and SCS’ margins improving upon the completion of lower-margin legacy projects (majority to be closed in 2024). mwb research confirms the price target of EUR 46.00 and HOLD rating on the stock. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

HelloFresh (HF) announced Q1 2024 numbers, reporting revenues of EUR 2.07bn (+3.8% yoy in constant currencies [c.c.]) and adjusted EBITDA (AEBITDA) of EUR 16.8m (-75% yoy). While revenues were c. 2% ahead of market expectations, AEBITDA beat consensus of c. EUR 4m by a considerable margin, largely reflecting a better mix following the ramp-up of its ready-to-eat (RTE) business. The meal kit category continued to moderate as expected; however, the young RTE business performed well in Q1. In terms of profitability, higher procurement costs and marketing spend weighed on AEBITDA and the margin (-2.5ppt to a mere 0.8%), which will also likely impact Q2 results. Despite management expecting a slowdown in revenue growth and a yoy dip in AEBITDA in Q2, HF reiterated its full-year guidance – revenue growth of 2%-8% yoy in c.c. and AEBITDA of EUR 350m-EUR 400m. HF has been making good progress in expanding its RTE business in international markets. While the prospects for this product category are promising, the company must show that the targeted efficiency gains are achievable on the scale envisaged. mwb research’s analysts reiterate their BUY rating at an unchanged price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/research/HelloFresh%20SE

BASF’s Q1 2024 results were a mixed bag. Sales missed consensus by 6%; however, the company surpassed market expectations by 6%, in terms of EBITDA (excluding special items [ex-SI]) on better fixed cost control. While sales fell 12% yoy to EUR 17.6bn owing to still muted prices, mwb research’s analysts note the pace of decline has moderated significantly. Notably, volumes grew 0.5% yoy after reporting several quarters of decline, giving confidence that BASF is gradually returning to growth. BASF remains optimistic of a recovery and confirmed its guidance for 2024 – EBITDA (ex-SI) to increase to EUR 8.0bn-EUR 8.6bn, up 8.2% yoy at the mid-point (2023: -29% yoy). Management plans to cut operating costs further (targets annual cost savings of EUR 2.1bn by 2026) and control capex and working capital investments. Other strategic initiatives, including the reduction of a stake in Wintershall Dea, are progressing well. mwb research’s analysts maintain a BUY rating at a revised PT of EUR 60.00 (vs EUR 58.50 previously). The analysts believe BASF will continue to remain a good dividend play, given management’s commitment to maintaining or increasing dividend (2023 yield: 6.6%).The full update can be downloaded under https://www.research-hub.de/companies/BASF%20SE