Gerresheimer released its Q2 24 figures, which show a mixed picture. In Q2 24, Gerresheimer's revenue only increased slightly to EUR 502.4m (+0.6% yoy), although it fell short of the EUR 508.1m expected. Adjusted EBITDA remained stable at EUR 107.3m, maintaining a margin of 21.4%, indicating resilience amid geopolitical tensions, inflation, and supply chain disruptions. The Plastics & Devices division performed strongly, with a 6.7% revenue increase and a 13.6% rise in adjusted EBITDA to EUR 78.8m, driven by high demand for drug delivery systems. However, the Primary Packaging Glass division saw a 6.9% revenue drop due to reduced pharma demand. Gerresheimer anticipates a significant upturn in H2, which in mwb research’s view is needed to fulfill its FY targets. With only slight adjustments to mwb research’s assumptions, the analysts confirm their PT of EUR 120.00. BUY. The full update can be downloaded under https://www.research-hub.de/companies/research/Gerresheimer%20AG

Fielmann reported strong financial results for H1, with consolidated sales up 12% yoy to EUR 1.1bn and EBITDA up 14% to EUR 235-240m, resulting in an EBITDA margin of 21.6%. With this, Fielmann kept up the good momentum already seen in Q1 (sales up 11%). The European markets showed a remarkable performance, with the operating profit margin increasing by 2PP to 23%. Fielmann USA contributed EUR 58m to Group sales with growth of 8%. The company further strengthened its position in Spain with the acquisition of the remaining stake in Óptica & Audiología Universitaria. For FY24, Fielmann reiterates its guidance and expects sales of EUR 2.3bn. For FY25 the company expects an EBITDA margin of 25%, reinforcing its strategy of digitalization and international growth. mwb research’s analysts have increased their estimates on the back of higher margin assumptions and therefore reiterate to BUY with slightly higher PT of EUR 66.00. The full update can be downloaded under https://www.research-hub.de/companies/Fielmann%20AG

KION announced that its Q2 consolidated net income before minorities is expected to be EUR 69m, missing the consensus expectation of EUR 93m, due to a EUR 22m goodwill impairment for the KION ITS Americas unit, which will also impact the fiscal year 2024 net profit. The impairment has fully written off the goodwill for KION ITS Americas, eliminating the risk of further impairments for this unit. mwb research’s analysts anticipate Q2 results to otherwise be in line with expectations, with revenues slightly up year-over-year and adjusted EBIT matching Q1 levels. Order intake is expected to recover from Q1's low level. Consequently, despite a slow start in Q1, mwb research’s analysts upgrade from HOLD to BUY with unchanged estimates and an unchanged price target of EUR 46.00. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

Fraport's traffic figures for June show a slowdown in growth, with passenger traffic at Frankfurt airport up only 1.4% year-on-year, compared with 6.9% in May, the lowest growth since the pandemic. This slowdown is partly due to the different timing of the Whitsun holidays, but also to a weak German economy combined with higher airport charges. In contrast, international locations such as Antalya, Greece, Lima and Ljubljana showed healthy growth, while Brazil saw a decline due to the closure of Porto Alegre. A recent roundtable discussion with Head of IR Florian Fuchs highlighted Fraport's potential. Major infrastructure projects are nearing completion, and the capex cycle will turn in FY25, promising significant cash generation and paving the way for a return to an attractive dividend. mwb research’s analysts reiterate their BUY recommendation with a price target of EUR 67.00. The full update can be downloaded under https://www.research-hub.de/companies/Fraport%20AG

Despite a market recovery and a slight upward trend in consumer sentiment, About You’s (AY) first quarter results showed a slow start, mostly due to a muted May trading. Overall revenue growth was reported with 2.2% yoy. Apart from the slow top-line development, AY impressed with a decent gross margin expansion by 3.8pp to 43.2%, and further cost control, supporting an improvement of adj. EBITDA to EUR 15.0m. The company confirmed its FY outlook of 1-10% yoy sales growth and an adj. EBITDA range of EUR 10-30m, which will be burdened by investments to spark stronger growth in FY 25/26. mwb research’s analysts maintain their PT of EUR 6.50 and confirm their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/ABOUT%20YOU%20Holding%20SE

CompuGroup Medical (CGM) has reduced its FY24 guidance following a disappointing preliminary Q2, with substantial declines in revenue and earnings primarily due to setbacks in the Ambulatory Information Systems (AIS) and Hospital Information Systems (HIS) segments. The company reported a 9% yoy drop in Q2 revenues, amounting to only EUR 277m, largely due to one-time sales in the previous year's AIS segment. This downturn and a cloudy outlook have led to a revised expectation for organic revenue growth to range from -2% to 0% for FY24, a significant shift from the previously anticipated growth of +4% to +6%. Alongside several challenges, CGM has also lowered its adjusted EBITDA forecast to between EUR 220-250m, prompting a substantial reduction in our PT to EUR 27.50 from EUR 36.00, reflecting the unexpected severity of the financial outlook. However, this also shows that mwb research’s analysts consider yesterday's share price decline of over 32% to be clearly exaggerated. BUY. The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Viromed Medical AG has terminated its cooperation with terraplasma medical GmbH, which had granted Viromed exclusive distribution rights in the DACH region for a cold plasma device that generated nearly half of its 2023 revenues. Viromed plans to launch its own cold plasma product, ViroCAP derma, in Q4 2024. Initially introduced as a Class I device, Viromed aims to certify ViroCAP as a Class IIa medical device, involving a conformity assessment by an EU-notified body. The termination poses risks, including the transition of major customers and the device's pending certification, but also offers significant potential through higher margins and global sales opportunities. Separately, Viromed announced the initiation of a study led by Hannover Medical School to evaluate the use of cold plasma for preventing ventilator-associated pneumonia (VAP), which, if effective, could significantly reduce mortality and healthcare costs. Adjusting the growth trajectory to reflect a more cautious view results in a new price target of EUR 4.60, still offering more than 100% upside for investors prepared to bear above average risk. mwb research’s analysts recommend to speculatively BUY. The full update can be downloaded under https://www.research-hub.de/companies/Viromed%20Medical%20AG

CGRE is a newly established real estate platform on the capital market, created through a reverse IPO of L-Konzept Holding AG. The company focuses on residential real estate and the development of entire districts in major German cities. CGRE benefits from extensive real estate and capital market experience, as well as access to planning, construction and land banking resources rarely found in the German market. The company aims to take advantage of the current cyclical low in the German real estate market, which offers exceptional investment opportunities for well-financed investors. Due to its relatively new presence on the capital markets, CGRE is not yet known to a broader investor base. However, as the company increases its investor relations communication and successfully executes its deal pipeline, mwb research’s analysts expect the current valuation discount to close. mwb research therefore initiates with a BUY, PT EUR 15.00. The full update can be downloaded under https://www.research-hub.de/companies/CGRE%20AG

In recent weeks, Wolftank Group has successfully extended two key contracts in the important Environmental Services segment, which accounted for 59% of FY23 sales. One contract is with Kuwait Petroleum and focuses on the environmental remediation of tank farms in Italy. The other contract, with the Sarlux refinery, is for the continued recycling and metal recovery of spent catalysts. Together these contracts amount to EUR 8.5m. This follows the EUR 12.7m in Environmental Services contract extensions announced in May, demonstrating Wolftank's favorable market position. With a robust order backlog of EUR 158m for FY23 and significant new orders already announced this year in the growth segments of Hydrogen & Renewables (EUR 15.5m hydrogen tank systems / approx. 18% of FY23 sales), the company's outlook remains strong. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 22.00. The full update can be downloaded under https://www.research-hub.de/companies/Wolftank-Adisa%20Holding%20AG

Gerresheimer’s Q2/H1 2024 is around the corner, so mwb research’s analysts take the opportunity to look at the consensus expectations. Since a couple of quarters, the company has been navigating through destocking headwinds in its Primary Packaging Glass (PPG) segment and this is likely to continue in Q2. This is also reflected in the consensus estimates, which indicate only limited momentum. Accompanied by a negative operating leverage, this is expected to be translated into increased pressure on margins. While management is expecting a stronger H2, the 2024 guidance could still crumble, depending on the duration of destocking. Nevertheless, a strong order situation and capacity expansions should facilitate a return to stronger growth beyond 2024. mwb research’s analysts confirm their PT of EUR 120.00 and their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/Gerresheimer%20AG