Brenntag reported recovering growth numbers in Q3 2024 amid the persistent challenging trends in the industrial chemicals market. Revenues and gross profits grew 1%-3% yoy in c.c. on healthy volumes despite sustained pricing pressure, while higher volume-driven expenses adversely impacted results in both the Specialties and Essentials divisions (op. EBITA: -4% and -10% yoy in c.c., respectively). Although Q3 results slightly missed consensus, Brenntag confirmed its operating (op.) EBITA guidance for FY24 at EUR 1.1bn-EUR 1.2bn (-9% yoy at the mid-point), given the positive effects from cost reduction measures (FY24 target savings of EUR 50m-60m; double in FY25 and ca EUR 300m by FY27), which is somewhat encouraging. All eyes are now on the progress of its strategic transformation, mainly the disentanglement of segments, and its progress on its mid-term targets (gross profit CAGR of 4%-7% and op. EBITA CAGR of 7%-9% over 2023-2027). mwb research’s analysts reiterate their BUY rating at a PT of EUR 80.00. The full update can be downloaded under https://www.research-hub.de/companies/Brenntag%20SE

Vulcan Energy Resources secures EUR 100m in BEW funding from the German Federal Ministry of Economics and Climate Protection, accelerating its “Heat4Landau” project to deliver renewable heat to the Landau area. In a major milestone, Vulcan has also commenced pre-commercial lithium hydroxide production at its new CLEOP facility in Frankfurt. Reinforcing its sustainable credentials, Vulcan received a Dark Green rating from S&P Global, enhancing access to favorable financing. While the financing timeline has led to a revised commercial start date in 2027, Vulcan remains on track to support Europe’s transition to sustainable lithium and renewable energy. mwb research’s analysts uphold their price target of EUR 10.50 with a BUY rating. On November 18th at 9:30 AM CET, mwb research is hosting a virtual roundtable with Dr. Francis Wedin, Vulcan’s Executive Chair. Register at https://research-hub.de/events/registration/2024-11-18-09-30/VUL-GR . The previous update can be downloaded under https://www.research-hub.de/companies/research/Vulcan%20Energy%20Resources

United Internet’s (UI) results fell short of market expectations. Q3 revenues were flat yoy and missed consensus by 3%, while adj. EBITDA declined by 2% yoy to EUR 316m, falling 9% short. Weak results were attributed to softer service revenues and higher network build expenses at 1&1 AG. For 2024, UI reduced its guidance for sales to EUR 6.35bn (+2% yoy) from EUR 6.4bn previously, reflecting lower service revenue expectations at 1&1. However, it maintained its EBITDA guidance at c. EUR 1.38bn (+6% yoy), which points to a recovery in profitability in Q4. While UI faces challenges in customer retention and adapting to changing market dynamics, it has the ability to acquire customers and benefit from its ongoing network expansion plans. mwb research adjusts its estimates for guidance update. The experts lower their price target to EUR 25.00 from EUR 28.00 and maintain its BUY rating. The full update can be downloaded https://www.research-hub.de/companies/United%20Internet%20AG

In H1 2024, Rigsave's revenue surged 134% to EUR 593k, driven by strategic reengagement in structured product distribution. And with 17 new asset pooling mandates for professional investors won in May, the company reached a significant milestone. Despite growth, cost pressures persisted, widening the operating loss to EUR 399k as administrative costs rose. However, finance income partially offset these losses, reducing the net loss to EUR 90k. Rigsave is expected to improve revenues in 2025, but with less pace than assumed initially and higher cost due to inflation has led to revised earnings assumptions and an adjusted target price of EUR 13.00 (old EUR 35.00) The rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/Rigsave%20S.p.A.

tonies reported Q3 sales growth of 21%, aligning closely with expectations but slowing from the 43% growth in Q2 due to high comparison figures. Nine-month sales growth reached 26%, implying a required Q4 growth of around 40% to meet the reiterated guidance. In the DACH region, growth normalized to 1% after a Q2 boost from Clever Tonies, while growth in the rest of the world remained at a strong 52%. The US market exceeded expectations with a 40% increase, reflecting expanded points of sale and shelf space as well as the launch of new "Book Pocket Tonies" targeting older children. Overall, Q3 supports tonies’ growth story and mwb research’s BUY recommendation. Head of IR Manuel Bösing will provide further insights at the mwb research German Select online conference on 3 December, interested investors are invited to register here: https://research-hub.de/events/registration/2024-12-03-10-30/TNIE-GR. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE

ABO Kraft & Wärme operates waste fermentation and biogas plants in Germany, using organic raw materials such as food waste and liquid manure. The fragmented market with around 10,000 biogas plants offers the company interesting acquisition opportunities, especially for operators who are in difficulties due to fluctuating substrate prices or expiring EEG subsidies. The roll-up model benefits from the cross-location optimization of substrate use, benchmarking, economies of scale and the use of ABO Kraft & Wärme's central technical and regulatory expertise. In order to maximize profits in the long term, the plant portfolio will be refocused towards biomethane and LNG until 2027, which seems reasonable in connection with GHG quotas. The DCF model shows a fair value of EUR 1.70, which indicates significant long-term upside potential, albeit with significant risks. ABO Kraft & Wärme is one of the few good opportunities to diversify a sustainable portfolio into biogas and biomethane. mwb research’s analysts recommend the stock as a speculative BUY. The full update can be downloaded under https://www.research-hub.de/companies/ABO%20Kraft%20&%20W%C3%A4rme%20AG

coinIX has acquired 12.5 million PEAQ tokens via a SAFT in 2022 at a price of USD 0.012. The PEAQ token has now had a spectacular IPO with high trading volume and a trading range between USD 0.30 and USD 0.50, giving SAFT investors such as coinIX a capital multiplier of up to 40 times. The current market price values coinIX's PEAQ holdings at approximately EUR 4.1m or over EUR 1.30 per share. In addition to PEAQ's additional value contribution, the other tokens and the COINVEST SCI1 fund have also performed positively. On this basis, mwb research’s analysts arrive at a new price target of EUR 5.00 (old: EUR 3.40). The listing of PEAQ shows that coinIX can open up highly lucrative investment opportunities in the blockchain value chain, e.g. in the form of SAFTs, which would otherwise remain closed to investors. mwb research’s analysts reiterate their BUY recommendation. The full update can be downloaded under research-hub.de/companies/coinIX%20GmbH%20&%20Co%20KGaA

The Payments Group Holding published H1 2024 results which in view of mwb research offered limited insight due to the company's significant strategic shift from asset management to a PayTech operating model. Revenues decreased to EUR 840K from EUR 4.66m in H1 2023, primarily due to discontinuing the private equity asset management business. The company reported a loss of EUR 638K or 3 cents per share. However, the outlook is promising with the planed acquisition of majority stakes in several PayTech companies. Upon completion, the consolidated transaction volume is expected to reach EUR 140m in 2025, with planned revenues of EUR 15m. The group of acquired businesses has been profitable and cash flow positive in 2023, with strong annual growth and is expected to generate profitable growth in the next years as well. Given the strategic transformation and positive future outlook, mwb research reiterates its BUY recommendation with an unchanged target price of EUR 3.00. The full update can be downloaded under https://www.research-hub.de/companies/The%20Payments%20Group%20Holding

Infineon reported mixed Q4 results, with sales reaching EUR 3.92bn (-6% yoy), slightly below consensus. The segment margin came in at 21.2%, exceeding consensus by 1.1pp. Basic EPS was slightly negative at EUR -0.07, impacted by a EUR 468m settlement with Qimonda. As anticipated, the order backlog continued to decline, indicating muted demand across key end markets; automotive demand has stabilized and is expected to decline slightly yoy, industrial demand is expected to fall significantly, and the CSS segment is projected to remain flat yoy. This is partly offset by gradual improvements in consumer electronics and growing demand for AI servers. Infineon's outlook for FY25 remains very cautious but suggests that demand will pick up later in the year. The company now expects a slight yoy sales decline and segment margins in the mid-to-high teens. mwb research’s analysts have adjusted their estimates, resulting in a new PT of EUR 37.00 and reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

secunet’s Q3 results confirmed strong preliminary figures, with sales up 26% year-over-year to EUR 110.5m, driven by continued momentum in the Public Sector segment. EBIT rose significantly to EUR 16.1m, achieving a 14.5% margin despite heavy investments in new product development. Supported by a solid 9M order intake and typically strong Q4 seasonality, secunet reaffirmed its FY24 outlook, targeting over EUR 400m in revenues and EUR 42m in EBIT. However, near-term investments in new products will weigh on margins, leading mwb research to adjust their margin trajectory with a focus on recovery beyond 2026. Consequently, the analysts have revised their price target to EUR 185.00 (old: EUR 195.00) and maintain a BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/secunet%20Security%20Networks%20AG