The Friedrich Vorwerk Group (FVG) announced a follow-up contract for the SEL gas pipeline project (SEL - Süddeutsche Erdgasleitung). This order is in line with the initiative to further expand the gas pipeline infrastructure in Germany and to become independent of coal, but also to expand the gas pipelines directly for future hydrogen transports. This will further fill FVG's order backlog (Q1/24 order backlog EUR 1.05bn) and strengthen the recently declining Natural Gas segment (sales: FY23 -10.5%, Q1/24 -21%). As the Natural Gas segment has particularly strong margins (EBIT margin: FY22 13.1%) and a sales share of around 40%, this should further improve overall margins. As a result, mwb research’s analysts expect EBIT margins to improve from 3.7% in FY23 to over 6% in FY24 and over 10% in FY25. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 22.00 based on the margin recovery, strong order book and solid growth prospects. The complete analysis is available at https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

Geratherm's annual report for FY23 shows a 19% drop in sales, primarily due to significant declines in Healthcare Diagnostics (-29% yoy) and Respiratory (-10% yoy), while Incubator Systems and Cardio/Stroke remained stable. Despite lower sales, gross profit remained stable due to lower energy costs and effective cost management, resulting in a slight increase in EBIT. Geratherm expects lower sales and negative EBIT in 2024, mainly due to the continued difficult market conditions for clinical thermometers, which already resulted in short-time working at the Geratal plant from 1 April 2024 to 31 October 2024. mwb research’s analysts adjust their estimates accordingly and arrive at a new price target of EUR 8.00 (old: EUR 9.15), while maintaining their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Geratherm%20Medical%20AG

VARTA has issued a profit warning, revising its FY24 revenue guidance to EUR 820-870m, down from at least EUR 900m, due to a significant market decline in energy storage systems and delays in the VARTA.wall high-voltage storage system launch. The company is also losing market share domestically. VARTA is re-evaluating its restructuring program, initially planned for completion by 2026, as previous assumptions no longer fit the current economic situation. Ongoing competitive pressure, internal issues, and high debt burden are exacerbating challenges. Due to these factors, mwb research’s analysts are further lowering their estimates. The capital market awaits an updated strategy and restructuring roadmap. However, VARTA's FY23 results are delayed until August. mwb research’s analysts maintain their SELL rating with unchanged PT of EUR 7.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Varta%20AG

LM Pay S.A reported a 16% increase in net income from sales to PLN 17.5m in 2023, compared to the previous year. However, operating profit (EBIT) fell to PLN 0.2m from PLN 3.7m in 2022, which is attributed to higher operating expenses due to one-off costs for new product implementation and the listing on the Düsseldorf Stock Exchange. On the other hand, the stabilized macroeconomic environment helped reduce credit risk and related costs. Looking ahead, the management anticipates dynamic sales growth in 2024 through product development and network expansion, aiming to enhance profitability and deliver value to shareholders. With its ongoing strategic developments, LM Pay is well-positioned to deliver enhanced value to its shareholders and customers by leveraging its achievements and aligning with long-term objectives. mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 66.00. The full update can be downloaded under https://www.research-hub.de/companies/LM%20Pay%20S.A.

Staige One AG's FY23 revenues were below expectations at EUR 2.6m compared to the estimated EUR 3.2m and FY22 revenues of EUR 4.3m. Despite operational improvements and an increase in customer revenues to EUR 2m, EBITDA was EUR - 5.3m, impacted by one-off IPO costs and sales initiatives. Staige expanded its market with 1,400 camera systems installed and significant engagement on its video platform. Looking ahead, Staige expects significant revenue growth to EUR 4.0-4.4m and improved EBITDA in FY24, driven by new contracts and market penetration. Management remains optimistic and forecasts revenues of EUR 6.0-10.0m by 2025- 2026. Hence, mwb research’s analysts maintain their BUY rating but adjust their PT from EUR 6.50 to EUR 6.00. In the view of the experts, it is worth noting that a large chunk of the 2024-2026 revenues are already secured by recent customer wins, hence significantly de-risking an investment in Staige. The full update can be found under https://www.research-hub.de/companies/Staige%20One%20AG

mwb research’s analysts initiate coverage of HMS Bergbau AG (HMS) with a BUY recommendation and a PT of EUR 36.00 offering an upside potential of 41.7%. HMS Bergbau AG has strong roots in the coal trade and is well positioned in the markets of Africa and Southeast Asia. While coal is perceived as becoming less and less important in Europe, demand is still expected to grow for many years in Emerging Markets, where HMS Bergbau is continuously expanding its market position. Slowly but surely, HMS is also trying to safeguard its more distant future by expanding on other commodities, such as critical raw materials. These are likely to see a boom in demand in future applications around cleantech and electrification. The full update can be downloaded under https://www.research-hub.de/companies/HMS%20Bergbau%20AG

Sartorius’ shares have experienced significant volatility, hitting their lowest level in over four years. The company has faced substantial challenges, including a sharp slowdown in demand and customer destocking following the COVID-19 pandemic surge. By mid-April, the share price had already fallen significantly, and another drop of over 14% occurred yesterday without any new developments. For 2024, Sartorius projects mid to high-single-digit sales growth and a slight improvement in EBITDA margin. However, ongoing market uncertainties and shrinking customer order sizes cast doubt on the company's ability to meet its targets. After a significant decline in Sartorius' share price, the company's valuation has reached mwb research’s DCF-based price target of EUR 210.00. With a fair valuation, Sartorius has been upgraded from a SELL to a HOLD rating. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

Stratec's share price has recovered significantly from its March low, driven by expectations of a strong Q2 and H2 performance based on a potential market recovery. In addition, efficiency measures are expected to improve the EBIT margin over the course of the year, boosting management's confidence. 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 remain concerned about a potential weak performance in the second half of the year. These concerns have been highlighted by recent statements and guidance cuts by peers such as Sartorius and Carl Zeiss Meditech. In view of these risks, mwb research’s analysts confirm their model assumptions and the unchanged price target of EUR 40.00. Consequently, mwb research downgrades Stratec from HOLD to SELL, reflecting the high uncertainty in the second half of the year. The full update can be downloaded under https://research-hub.de/companies/research/Stratec%20SE

Beiersdorf hosted a Capital Markets Day, highlighting its future growth plans. In addition, management reiterated its mid-term financial guidance. The company aims to expand into new markets, particularly with its iconic brands like Eucerin and Nivea in India and China and promote its luxury brand Chantecaille to the Chinese market. The operating margin is projected to grow annually by c. 50bp. For 2024, mwb research’s analysts expect EPS growth of 33% also helped by lower taxes and share buybacks. The company emphasizes innovation with products like Thiamidol and S-Biometric, driving future skincare growth. Despite positive outlooks and expansion plans, the current share price reflects these developments, which is why the analysts maintain their HOLD rating with an unchanged PT of EUR 143.00. The full update can be downloaded under https://www.research-hub.de/companies/Beiersdorf%20AG

High debt-to-equity conversion and successful capital increase Topic: in May, LAIQON's 20/24 convertible showed a 80% conversion rate and a 5.3% cash capital increase has been placed successfully at a premium. Both capital measures underpin the investor's appetite for LAIQON's equity story. High debt to equity conversion: the conversion windo [ … ]