Nemetschek reported good set of numbers in Q1 that were broadly in line with consensus. Revenue growth picked pace to c.10% yoy in constant currencies (c.c.) and EBITDA grew 11.9% yoy with the margin improving to 30.5%. All segments contributed to the operating performance, reporting high-single- to low-double-digit yoy revenue growth (in c.c.) and all segments, except Build, delivered an increase in their EBITDA and margin. On the back of accelerated transition from license to SaaS model, annual recurring revenue (ARR) increased at a significantly faster rate of c. 25% yoy and recurring revenue share reached a new record high of 83% (+10ppt yoy). Management remains optimistic on returning to double-digit growth rates and reiterated its guidance for 2024, expecting revenues to increase by 10%-11% yoy in c.c., ARR to grow by c. 25% yoy, and EBITDA margin to stay at 30%-31%. Nemetschek expects even higher growth dynamics in the mid-teens in 2025. Although, mwb research’s analysts acknowledge that Nemetschek remains a high-quality company, with EV/ Sales 2024E of almost 10x and EV/ EBITDA 2024E of 32x, valuations are expensive in the view of mwb research. The analysts maintain their SELL rating with an unchanged price target of EUR 71.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Nemetschek%20SE

FCR Immobilien AG has presented its audited financial statements for FY23, which confirm the preliminary results. Despite the challenges in the German real estate market, the company achieved positive results: Revenues increased by 58% yoy to EUR 56.6m, driven by higher rental income and property sales above appraisal values. Although funds from operations (FFO) declined slightly to EUR 8.2m, they have grown at a CAGR of 18% over the last few years, underlining the cash generating nature of FCR's business model. Nevertheless, the stock currently trades at a discount of around 30% to NAV, which mwb research’s analysts believe is unjustified, especially after improving several other KPI’s such as WAULT and occupancy rates. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 20.50. An earnings conference call will be held on Monday, May 6 at 11:00 CEST. Please follow this link to register: https://research-hub.de/events/registration/2024-05-06-11-00/FC9-GR . The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG

Fielmann ended Q1 2024 on a positive note. Despite weakening consumer sentiment in a few European markets, particularly in Germany, the company reported organic revenue growth of c. 4% in Q1, further topped by its US acquisitions, consequently taking the overall growth to 11% yoy. EBITDA also grew at a similar pace of 11% yoy. Fielmann remains optimistic about its growth prospects in 2024, given its market share gains, omnichannel strategy, and expansion plans in Eastern Europe, Spain, and the US. Management targets to deliver 12% yoy growth in sales to c. EUR 2.2bn in 2024, achieve stable or higher EBITDA margin vs 2023 (of 20.8%), and an improved EBT margin. The proposed EUR 1.00 per share dividend (+33% yoy), yielding 2.3% and implying a payout of 66% reflects management’s confidence in business prospects. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 62.00. The full update can be downloaded under https://www.research-hub.de/companies/Fielmann%20AG

ProSiebenSat.1 (PSM) held its important AGM on Tuesday, where the future of the group was decided. Italian major shareholder MediaForEurope (MFE) failed in its attempt to split the group due to resistance from other shareholders. In mid-March, MFE, the Italian TV group controlled by the Berlusconi family, surprised shareholders with a proposal to separate its important entertainment TV business from its online activities in order to create value. This will not happen in this form, but MFE prevailed and its two candidates became part of the Supervisory Board. PPF, the second largest shareholder, also put forward its own candidate. As a result, the influence of the major shareholders has grown and the pressure on management is increasing. This should lead to a gradual sale of non-core businesses 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

MTU Aero Engines (MTU) posted decent numbers in Q1 2024. The top line missed consensus estimates by a marginal 1%, while adj. EBIT was 2% better. Adj. revenue growth decelerated to 8% yoy from 19% yoy in Q4 2023 on a high comparable base and supply headwinds, particularly for spares. Adj. EBIT grew at a slower 3% yoy to EUR 218m. However, management is hopeful of a recovery in growth momentum, as availability of spares has improved since April, and it expects supply concerns to gradually ease over the course of the year. Moreover, order backlog remained comfortable at EUR 25.4bn, up 4% vs end-2023. Therefore, MTU maintained its guidance for 2024, expecting top-line growth of 17% yoy (adj.) and an EBIT margin of over 12%. Management has not provided any further update on the GTF inspection and mwb research’s analysts do not see any material burden from this ahead. mwb research’s analysts remain constructive on MTU, as its long-term growth prospects remain intact amid high commercial aircraft production rates, a favorable narrow body market, and strong MRO and aftermarket demand. mwb research’s analysts reiterate their BUY rating at a revised price target of EUR 252.00 (old: EUR 245.00). The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

Fuchs Q1 2024 results were dull amid pricing pressures and unfavorable currencies, with revenues and EBIT missing consensus by 4%-5% each. The top-line fell by 6% yoy, including an organic decline of 3% vs an increase in the preceding quarters. However, cost-control measures and lower energy and freight costs supported profitability. EBIT grew 4% yoy and the margin improved 1.2ppt yoy to 12.2%. Despite a slow start to 2024, management is hopeful of a modest recovery over the course of 2024 amid macro challenges. It reiterated its conservative guidance for the year – revenues of c. EUR 3.6bn (+2% yoy), EBIT of EUR 430m (+4% yoy; margin: 11.9%; +20bps yoy), and FCF (before acquisitions) of c. EUR 250m (-46% yoy). mwb research’s analysts acknowledge Fuchs’ ability to deliver return on capital that is more than twice its cost of capital, even in difficult markets. However, the company serves a largely mature market, with limited scope for elevated growth. Selective acquisitions, as in the past, could help fill the gap, but it could be an uphill battle. Overall, the FY24E EV/EBIT of 12x and the P/E of 20x appear fair. mwb research’s analysts reiterate their HOLD rating in the stock with an unchanged price target of EUR 48.00. The full update can be downloaded under https://www.research-hub.de/companies/Fuchs%20Petrolub%20SE

Formycon has published its full figures for FY23, confirming the preliminary figures. The company is investing heavily in its development pipeline and will contribute more of its own resources. This will incur higher costs, but it will potentially pay off in higher sales participation in the future. While 2024 will be impacted by increased investments into the biosimilar pipeline, it will also be important in terms of progressing the commercialization pipeline. Following a ramp-up in 2025, mwb research’s analysts anticipate that revenues from the expected commercialization of FYB202 and FYB203 will begin to emerge gradually. On lower estimates, burdened by higher costs and amortization, mwb research reduces the PT to EUR 81.00 (old: EUR 91.00). The rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

LM Pay S.A. announced its preliminary results for FY23, together with a first indication for Q1 24. In FY23, LM Pay achieved impressive revenue growth of 16.5% to PLN 17.5m (EUR 4.0m), broadly in line with mwb research’s estimates of PLN 18.1m. The company saw a significant 24% increase in customers, from 26,000 to 33,000 in FY23, and in particular a notable increase in the share of recurring customers, which rose from 26% to 29%. In the face of one-off challenges, including entering into a new refinancing arrangement and the costs associated with listing its shares, LM Pay remained profitable. However, EBIT declined to PLN 0.7m (EUR 0.2m) in FY23, but this is expected to be a one-off event and the company should soon return to higher profits. Despite a good start to the year, the postponement of the launch of the new VISA product (now expected in H2 2024) is also causing a shift in revenues and earnings. For now, mwb research’s analysts are lowering their assumptions for 2024 and 2025, but the long-term estimates remain unchanged. Given the limited impact of the revised assumptions on mwb research’s valuation, the analysts reiterate their BUY rating with a slightly adjusted PT of EUR 66.00 (old: EUR 71.00). The full update can be downloaded under https://www.research-hub.de/companies/ABOUT%20YOU%20Holding%20SE

Swiss Estates AG published preliminary figures for 2023. Despite good results, the figures were affected by a long-standing legal dispute with the Altra Foundation. However, it is positive that Swiss Estates is now finally free of these legacy issues and can focus on recurring income and the positive growth dynamics of the Swiss real estate market. Net rental income increased by 4.4% in 2023, slightly exceeding expectations. A new construction project in Rüthi, St. Gallen (95% leased as of the end of 2023) will generate additional momentum from 2024. The net asset value (NAV) has declined slightly by 3%, which leads mwb research’s analysts to adjust their estimates accordingly. This results in a new target price of CHF 7.50 (old: CHF 7.70), which leads mwb research to confirm their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Swiss%20Estates%20AG

Once again, the share of Delivery Hero is going through a rollercoaster ride. Rumors about the entry of an aggressive competitor, Meituan, have erased share price gains from the solid Q1 interim statement. Meituan has made a name by gaining substantial market share in Hong Kong thanks to an aggressive marketing and content strategy, as there are concerns that fierce competition could threaten DH’s leading market share. Meanwhile, the entry of Sachem Head Capital Management has been confirmed, as the activist investor has been proposed for a seat on Delivery Hero’s Supervisory Board. As mwb research’s analysts pointed out in an earlier note, Sachem has an impressive track record in creating shareholder value. mwb research’s analysts maintain their estimates and their PT of EUR 52.00. BUY. The full update can be downloaded under https://www.research-hub.de/companies/Delivery%20Hero%20SE