Yesterday's news from SGF signals a pivotal moment for the company with a strategic shift as it acquires three Internet payment service providers. In doing so, SGF is transforming itself into a major player in the FinTech sector focused on prepaid (emoney) services. The move marks SGF's transition from an investor-based model to a traditional operating business, which will ultimately lead to the company's name change to "The Payments Group Holding" today. As a first step, SGF will acquire 75% stakes in Funanga AG, Campamocha Ltd. and Surfer Rosa Ltd., creating a publicly traded FinTech group with approx. 50 employees. The projected transaction volume for 2025 exceeds EUR 140m, with net revenues of around EUR 15m. Given the high growth potential and margins of 45-50% (mwb est.), mwb research’s analysts believe the initial valuation is justified. After obtaining further information, the analysts plan a complete review of SGF's future equity story. In the meantime, mwb research maintains the current BUY rating, but set their PT at the company's "acquisition multiple" of EUR 2.40. The stock thus offers significant upside potential. The full update can be downloaded under https://www.research-hub.de/companies/SGT%20German%20Private%20Equity

secunet Security Networks AG saw a 4.7% yoy decline in H1 2024 group sales, primarily due to reduced sales in both Public and Business sectors but showed a rebound in Q2 driven by the Public Sector. Adjusting for the one-time effects, operating profitability improved slightly, driven by a significant decrease in cost of sales in the Business segment. The order backlog grew significantly, reaching EUR 216.5m (+13% yoy) supporting the company’s decision to maintain its full-year guidance. Based on the current development of Q2 results and the ongoing expansion into cloud offerings, mwb research’s analysts maintain their PT of EUR 190.00 and reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/secunet%20Security%20Networks%20AG

INDUS Holding AG's results for the second quarter were largely in line with expectations, despite significant challenges in its home market of Germany. In early August, the company lowered its full-year revenue and EBIT guidance by 8% and 13%, respectively, to reflect the ongoing economic uncertainties. Q2 sales were down 5.4% yoy, but showed a decent sequential improvement. Despite lower sales, EBITDA declined by only 3.7%, exceeding expectations and demonstrating the resilience of INDUS' portfolio. In addition, free cash flow was strong at EUR 41.2m, supported by better working capital management and the absence of any acquisition in Q2. The company remains cautious for the rest of the year, but continues to focus on acquisitions and operational efficiency. mwb research’s analysts therefore reiterate their BUY rating with an unchanged PT of EUR 35.00. The full update can be downloaded under https://www.research-hub.de/companies/INDUS%20Holding%20AG

tk nucera reported Q3 sales of EUR 236m, a robust 26% yoy increase and 40% qoq growth as announced previously. This growth was driven by progress on major projects in the AWE segment (up 20% yoy), but also by stronger CA sales, which were up 34% yoy. The Company's EBIT was slightly positive at EUR 1m, driven by the product mix with higher profitability in the CA segment. Order intake reached EUR 271m with a book-to-bill of 1.15x, of which EUR 220m from AWE and EUR 51m from CA, bringing the order backlog to EUR 1.3bn. Due to the uncertainties in the market leading to a slowdown, mwb research’s analysts expect now the book-to-bill to be below 1x this and next years. The analysts now confirm their previously adjusted estimates and maintain their BUY rating with an unchanged PT of EUR 13.50 based on the company's strong long-term prospects. The full update can be downloaded under https://www.researchhub.de/companies/thyssenkrupp%20nucera%20AG%20&%20Co%20KGaA

Lanxess reported strong Q2 2024 numbers, with adjusted EBITDA of EUR 181m (+69% yoy), in line with its preliminary release, that was well above the consensus of EUR 137m (at the time of prelims). The good result was driven by higher capacity utilization, as destocking is nearing an end. Successful cost saving programs also helped. Sales fell 6% yoy to EUR 1.7bn (a 2% miss), as volumes were mixed with slight increases in some industries amid continued weak demand in agrochemicals and construction. However, encouragingly, the rate of decline in prices has narrowed and demand is gradually stabilizing in some industries. Lanxess expects Q3 adjusted EBITDA to be close to or in line with Q2 and confirmed its FY24 guidance of 10%-20% adjusted EBITDA growth. While recovery in the chemical industry is still muted, normalized inventories are now removing a major drag on the business. Combined with cost measures that are taking effect (EUR 150m annual savings targeted from 2025 from structural measures), further improvements for Lanxess should be possible. mwb research’s anlysts reiterate their BUY recommendation with a price target of EUR 30.00. The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

Bechtle reported Q2 FY24 figures in line with prelims, with business volume growing a muted 1% yoy to EUR 1.83bn and revenue dropping 2% yoy. The growth had fallen significantly short of expectations at the time of pre-release, due to a reluctance to invest, particularly among SMEs, and a weak public sector business, resulting in an EBT of EUR 84m and an EBT margin of 5.7% (-50bps yoy). Amidst weak Q2 showing, management was forced to revise down full-year guidance to deliver stable revenues, volumes, earnings and EBIT margin yoy at the pre-announcement, which it now confirmed. The company introduced cost saving initiatives and a hiring freeze to mitigate lower sales volumes. Despite these efforts, no substantial recovery is expected in H2, with gradual improvement in the public sector business over the course of the year. Nevertheless, commentary on 2025 and beyond is reassuring, which indicates that growth drivers remain intact. mwb research’s analysts confirm BUY rating and price target of EUR 55.00. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Stratec’s Q2 2024 numbers pointed to a recovery in demand, confirming what management had hinted. Q2 sales grew 6% yoy (vs -16% yoy in Q1) on healthy demand for service parts and consumables in addition to good progress in development projects. Adj. EBIT was particularly strong at EUR 6.6m (vs EUR 3.1m in Q2 2023), bolstered by cost efficiency and a better mix. Management remains optimistic of a gradual recovery in demand over the rest of the year and reiterated its guidance for 2024. The growth of the medical technology sector, driven by digitization and the integration of AI in diagnostics, supports Stratec's long-term outlook. Despite a positive outlook for stable to slightly rising revenues in 2024, mwb research’s analysts note that sales and order development over the past few quarters have been extremely lumpy for Stratec. The analysts remain concerned about any negative surprises in H2 (peers such as Sartorius and Carl Zeiss Meditech have cut their 2024 guidance). mwb research’s analysts would like to see a sustained recovery in demand trends, and therefore, they largely retain their model assumptions and an unchanged price target of EUR 40.00. mwb research’s analysts upgrade their rating from SELL to HOLD, following the recent share price correction (-10% over the past month). The full update can be downloaded under https://research-hub.de/companies/research/Stratec%20SE

Scout24 reported good set of results in Q2 2024, coming in c.1%-2% ahead of consensus in terms of revenues and ordinary operating (op.) EBITDA. As hinted by management, revenue growth accelerated in Q2, as professional/agent memberships maintained strong momentum and private subscriptions accelerated materially. Revenue performance was resilient across segments. Despite operating leverage benefits from a favourable mix and effective cost control at its underlying business, the consolidation of Sprengnetter impacted op. EBITDA margins, though the op. EBITDA line was still higher yoy. Scout24 continues to benefit from healthy demand for its ImmoScout24 core products, 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 margin expansion of 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 an unchanged price target of EUR 70.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Scout24%20SE

Westwing reported decent set of numbers in Q2 2024. Revenues grew 4% yoy and gross merchandise value was up 5% yoy on an enhanced product mix and improved basket sizes, despite a yoy drop in order volumes. Also, active customer base increased 2% yoy to 1.3m, pointing to its effective customer acquisition strategy. However, adj. EBITDA declined 11% yoy, with the margin down 70bps yoy to 3.7% (Q1: 5.8%), due to increased marketing investments towards enhancing brand awareness, particularly in Germany, while the gross margins, fulfilment costs, and other general overheads fared well. Management retained its cautious outlook for 2024 amid the still stressed consumer demand environment. It continues to guide for revenues of EUR 415-445m (-3% to +4% yoy) and adj. EBITDA of EUR 14-24m. The company is currently taking up multiple initiatives to reduce business complexities and improve scalability, expand its footprint in Europe, and focus on premium brand positioning, which should take it towards its long-term ambition of reaching EUR 600-800m in revenues and an adj. EBITDA margin of 10%+. mwb research’s analysts confirm their PT of EUR 10.00 and BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20SE

Aixtron's growth potential, particularly in the silicon carbide (SiC) market, is being questioned due to concerns about sluggish EV sales and the potential reduction in SiC content in electric vehicles. However, despite some negative signals, the global EV market is expected to grow significantly, with a projected 20% increase in sales in 2024 and long-term growth of 16% annually until 2030. While Tesla's announcement of reducing SiC content caused concern, this is largely due to advancements in SiC technology and design, making it more mainstream and potentially expanding its market. Consequently, market researchers estimate that demand for SiC transistors will increase tenfold between 2023 and 2035. While the emergence of GaN technology poses a threat to SiC, it could benefit Aixtron, as GaN transistors rely more on the epitaxy process where Aixtron's equipment is used. Overall, the fears around SiC's growth may be overstated, and mwb research’s analysts reiterate their BUY recommendation. mwb research will hold a roundtable discussion with Aixtron's Senior IR Manager Ralf Penner on 20 August as part of mwb research’s German Select Conference. You are welcome to register here: https://research-hub.de/events/registration/2024-08-20-13-30/AIXA-GR. The full update can be downloaded under https://www.research-hub.de/companies/AIXTRON%20SE