Multitude has published its quarterly figures for the first quarter of 2024, which confirm a continued strong overall trend. The positive development in all business units remains convincing. Multitude's revenues increased by 18.3% to EUR 64.2m in Q1 2024, representing one of the company's strongest quarters of growth. EBIT grew by an impressive 31.0% yoy to EUR 11.6m, resulting in a net profit of EUR 2.6m, up 13% yoy and EPS of EUR 0.07. The company has reorganized its structure and introduced new products for SME businesses. In addition, Multitude has decided to launch a share buyback program of up to 100,000 shares, representing approximately 0.5% of the outstanding shares. The maximum amount that can be used to buy back shares is EUR 700,000, which corresponds to EUR 7.00 per share. All in all, good numbers and confirming news flow. The management also confirms the outlook, so mwb research’s analysts see no reason to adjust their estimates and reiterate BUY with an unchanged price target of EUR 13.20. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

Friedrich Vorwerk Group (FVG) published its Q1 24 results. Sales grew 5% yoy, while EBIT margins improved by 80 bps to 2.5%. These results were largely expected and in line with mwb research’s and consensus expectations. A strong margin recovery is likely in FY24 as better terms are agreed in new contracts, and the backlog of old, low-priced orders is now expected to be completely cleared in Q2 24. As a result, mwb research’s analysts expect EBIT margins to improve from 3.7% in FY23 to above 6% in FY24. Order intake was down 42% yoy, but a book-to-bill ratio of 1.6 still points to growth, also supported by an order backlog of EUR 1.05bn. Based on the recovering margins, the strong order backlog and the growth prospects from the transition to renewable energies in Germany, mwb research confirms the BUY rating and raises the PT to EUR 22.00. The complete analysis is available at https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

LAIQON successfully completed a 5.3% capital increase by issuing 928K new shares at EUR 6.25, a 15% premium over the previous closing price. This will raise the share capital to EUR 18.4m, generating EUR 5.8m in gross proceeds. The new shares were allocated to existing shareholders, new investors, and board members. This capital boost will enhance LAIQON's balance sheet and support its GROWTH 25 strategy to increase assets under management (AuM) from EUR 6.4bn to EUR 8-10bn by 2025E, in particular helped by the game changing partnership with Union Investment to launch a new fund product shortly. LAIQON aims to scale its business, targeting EBITDA margins above 45% by 2025. The capital increase de-risks an investment, which is why mwb research’s analysts maintain their BUY rating with a slight PT reduction to EUR 10.00 (old EUR 10.50).The full update can be downloaded under https://www.research-hub.de/companies/LAIQON%20AG.

Bayer reported a decent set of numbers in Q1 2024. Sales declined 4% yoy to EUR 13.8bn (-1% yoy currency and portfolio adjusted [c.p.]) and fell 2% short of consensus, mainly dragged by FX (-4ppt impact), though prices and volumes were broadly flat yoy. However, it fared better in terms of profitability. Adj. EBITDA declined by 1% yoy to EUR 4.4bn (a 6% beat) on soft revenues, yet the margin improved by 1ppt yoy to 32.1%. As demand and pricing trends remain uncertain, management reiterated its tepid outlook for 2024 – sales growth of -1% to +3% yoy (c.p.) and adj. EBITDA declining by 9% to 3% yoy (FX adj.). Over the next 2-3 years, management intends to focus on its pharma pipeline, address litigation issues, and deleverage. It has initiated a restructuring plan to enhance profitability and flexibility and have a leaner operating model. For now, the company is not considering any structural changes (such as separation of either Consumer Health or Crop Science), which could have had a larger impact on valuations. Bayer’s road to recovery still looks bumpy, given the uncertainties surrounding its c.57K pending Roundup/Glyphosate-related litigations. Despite the challenges, mwb research maintains the BUY recommendation for investors with a good risk appetite. On largely maintained estimates, mwb research reiterates the BUY rating on the stock at an unchanged price target of EUR 42.00. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG

ProSiebenSat.1 (PSM) reported full Q1 results in line with pre-announcement, with revenues and adjusted (adj.) EBITDA beating market expectations. Despite the slow start of DACH TV ad sales in Q2, due to the timing of Easter in April, PSM should see better trends in May and June. Moreover, despite the strong Q1, management confirmed its FY 2024 outlook (revenues: EUR 3.95bn +/- EUR 150m; adj. EBITDA: EUR 575m +/- EUR 50m) against tough comparables and major sporting events being aired by competing channels in Q2 and Q3. At its recent AGM, PSM’s major shareholder MediaForEurope (MFE) failed in its attempt to spin off the group, due to resistance from other shareholders. That said, increasing pressure of major shareholders on management should lead to a gradual sale of non-core businesses (including Verivox and Flaconi) until only the TV business remains. mwb research’s analysts believe that disputes at the top management are likely to increase, which should impair PSM in a rapidly changing competitive environment. Hence, mwb research’s analysts maintain their SELL rating with an unchanged price target of EUR 6.00. The full update can be downloaded under https://www.research-hub.de/companies/research/ProSiebenSat.1%20Media%20SE

TUI's financial results for the second quarter of 2024 exceeded consensus expectations, with revenues of EUR 3.65bn, up 16% yoy, driven by a robust 25% growth in the Holiday Experiences segment and an exceptional 53% increase in Cruises. The company's underlying EBIT also exceeded expectations, improving by EUR 54m yoy to EUR -189m, with significant contributions from Hotels & Resorts and Cruises, partly offset by a slight decline in Markets & Airlines due to previous divestments. Despite a gradual slowdown in momentum, bookings for the summer of 2024 are healthy, up 5%, with ASPs also up 4%. The company's strong free cash flow of EUR 973m in Q2 has supported ongoing deleveraging, with TUI targeting further credit rating improvements. TUI has confirmed its guidance and is on track to meet or even exceed it. mwb research’s analysts reiterate their BUY recommendation with an unchanged price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

tk nucera published its Q2 23/24 results. As expected, revenues continued to grow by 11% yoy due to progress in major projects (e.g. Saudi Arabia) in the new AWE (green hydrogen electrolyser) segment. However, profitability suffered much more than before, resulting in a negative EBIT of EUR -10.6m (Q2 22/23 EUR 2.3m), also related to the low margin large projects in the AWE segment. These were offered at low prices in order to establish a track record and secure future highly profitable long-term service contracts. Order intake in the AWE segment was also below mwb research’s expectations at EUR 11.6m. This is due to a general reluctance to invest and increased skepticism in the green hydrogen sector. The still significant order backlog of around EUR 1.2bn will ensure growth for the next few years, but longer-term growth will require stronger order momentum. mwb research’s analysts reiterate their BUY rating but change their PT to EUR 18.00 due to the strong profitability impact of large orders and lower new orders. The full update can be downloaded under https://www.researchhub.de/companies/thyssenkrupp%20nucera%20AG%20&%20Co%20KGaA

Brenntag’s Q1 24 results were 6-7% below consensus amid persistent pricing pressure and soft demand in the backdrop of a challenging macro-economic and geopolitical environment. Sales declined 12% yoy to EUR 4bn in Q1, dragged by weaker prices, which more than negated the impact of better volumes. Op. gross profit declined 6% yoy and op. EBITA fell at a steeper 25% yoy, due to the under-absorption of fixed costs and higher depreciation charge. Management expects H1 to remain challenging and a gradual recovery in H2. It is cautiously optimistic of an improvement in operating performance over the course of ‘24 and has, therefore, downgraded its guidance for the FY. It now targets to reach the lower end of its initial op. EBITA range of EUR 1.23- 1.43bn, which was somewhat disappointing and could mean flat-to-declining profitability. All eyes are now on its strategic transformation, mainly the disentanglement of segments, and its progress on its mid-term targets. mwb research’s analysts adjust their estimates but reiterate to BUY, albeit with lower PT of EUR 85.00 (previous: EUR 90.00). The full update can be downloaded under https://www.research-hub.de/companies/Brenntag%20SE

Cancom had a good start to 2024 on a favourable base, with the positive development mainly supported by the acquired KBC Group (now CANCOM Austria Group), which was consolidated from 01 June 2023. Revenues grew 39% yoy, led by inorganic expansion, while organic top-line was down c. 6% yoy on weak demand in Germany. However, inflationary headwinds and FX losses resulted in a slower 26% yoy growth in EBITDA to EUR 30m. Despite industry challenges, due to subdued demand from German Mittelstand, the company expects an acceleration in orders in H2 2024, as customer demand for IT service providers continues to rise. Margin expansion is expected in FY 2024, with the gross and EBIT margins expected to improve on synergies from CANCOM Austria. Consequently, management reiterated its guidance for 2024 for revenues and EBITDA to grow c. 23% yoy each. While mwb research’s analysts remain optimistic about Cancom's growth prospects, they are changing their rating from BUY to HOLD with an unchanged price target of EUR 33.00. The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE

tonies announced a robust 20.3% year-over-year growth in Q1 2024, with revenues reaching EUR 78.3m, slightly ahead of market expectations. Despite a slower growth rate compared to the full-year target of 33% due to supply chain disruptions and a strong previous year base in the US, non-DACH markets, especially North America and Rest of World, led the expansion with notable growth rates of 47% and 49% respectively. tonies has confirmed its 2024 guidance, expecting revenues of at least EUR 480m and an adjusted EBITDA margin between 6% and 8%, alongside a positive free cash flow of EUR 10m. Maintaining a positive outlook, mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 8.70, reflecting a solid performance across key markets and product categories. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE