niiio finance group AG (“niiio”) announced that a majority of its investors has entered into an investor and shareholder agreement with Neptune TopCo GmbH, an investment company indirectly owned by Pollen Street Capital Limited. Over 68% of outstanding shares are part of this agreement, including Deutsche Tech Ventures GmbH. The deal involves shareholders exchanging their niiio shares for Neptune shares, maintaining an indirect interest in niiio. This strategic move is geared towards financing acquisitions – of which four are already in the final stage of negotiation – and fostering the company’s economic development. The deal may lead to niiio's delisting from the stock exchange. In addition, outside investors might face uncertainty regarding their holdings given Neptune’s/Pollens control over niiio. While the partnership benefits niiio strategically, the impact on outside investors remains unclear, prompting AlsterResearch to downgrade from BUY to HOLD with a new PT of EUR 0.50 (old EUR 1.20). The full update can be downloaded under https://research-hub.de/companies/niiio%20finance%20Group%20AG.

secunet published a guidance downgrade of Friday, which was accompanied by preliminary figures for Q3. The company downgraded its earnings outlook for FY23 due to an unfavorable product mix, while at the same time, investments are squeezing on margins. The management also implied a similar development in FY24. According to prelim. data, revenues for the third quarter came in at EUR 87.6m, 13% higher yoy. EBIT was down by 41% yoy to EUR 5.7m, compared with EUR 9.0m a year ago. AlsterResearch has revised its estimates given the new outlook. After the investment phase, the analysts expect a gradual return to EBIT margins of c. 18% in the medium term. The analysts of AlsterResearch come to a new PT of EUR 200.00 (old: EUR 225.00). Given the sharp share price reaction on Friday (-29%), the experts upgrade from HOLD to BUY. The full update can be downloaded under https://www.research-hub.de/companies/secunet%20Security%20Networks%20AG

TAKKT’s Q3 ‘23 results were tepid as announced previously. Sales declined 11% yoy and EBITDA fell 20% yoy, with the EBITDA margin weakening 1.1ppt yoy despite a 70bps yoy improvement in the gross margin. The top line was impacted by reduced order intake in the European Industrial & Packaging and the American Office Furniture & Displays divisions, exacerbated by deteriorating consumer sentiment and geopolitical uncertainties. The possible US government shutdown is expected to further impact demand. TAKKT has reiterated its recently cut guidance for ‘23, expecting a mid-single-digit organic sales decline and an EBITDA of EUR 107-117m. That said, in light of the current challenges, TAKKT is placing greater emphasis on strengthening its profitability and continues to expect a significantly higher FCF in ‘23 than in ‘22, which once again underlines the strength of the company’s business model. AlsterResearch’s PT of EUR 15.00 still justifies a BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Vossloh reported a good set of results in Q3, with sales and EBIT coming in line with its prelims, although sales and order momentum slowed, as expected, vs a strong Q2. The company recorded healthy order intake of EUR 257m in Q3 (-5% yoy), benefitting from a framework agreement in Germany, a major rail fastening system order from China, and expansion of market share in Denmark’s switch market. Cash flow situation also improved in 9M on the back of healthy operating performance and better w/c management. Vossloh has confirmed its recently upgraded FY23 guidance, where it had raised its sales forecast by 3% and EBIT guidance by 7% at the mid-point; this still points to a deceleration/decline in Q4 owing to a tough comparable base. Overall Q3 results were satisfactory and show again that Vossloh is in the sweet spot of a structurally growing market. AlsterResearch’s analysts reiterate to BUY with an unchanged PT of EUR 52.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

Vossloh reported a good set of results in Q3, with sales and EBIT coming in line with its prelims, although sales and order momentum slowed, as expected, vs a strong Q2. The company recorded healthy order intake of EUR 257m in Q3 (-5% yoy), benefitting from a framework agreement in Germany, a major rail fastening system order from China, and expansion of market share in Denmark’s switch market. Cash flow situation also improved in 9M on the back of healthy operating performance and better w/c management. Vossloh has confirmed its recently upgraded FY23 guidance, where it had raised its sales forecast by 3% and EBIT guidance by 7% at the mid-point; this still points to a deceleration/decline in Q4 owing to a tough comparable base. Overall Q3 results were satisfactory and show again that Vossloh is in the sweet spot of a structurally growing market. AlsterResearch’s analysts reiterate to BUY with an unchanged PT of EUR 52.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Vossloh%20AG

Wacker Chemie’s Q3 2023 results were uninspiring and reflected the challenging operating environment for chemical companies. Sales and EBITDA missed consensus expectations by 3% and 7%, respectively, recording yoy declines amid sluggish demand, falling volumes, and pricing pressure. All segments reported lower sales, with Polysilicon dipping much steeper than expected owing to a significant drop in solargrade polysilicon prices. The depressed volumes and resultant lower utilisation rates weighed on profitability. Citing weak customer demand in many of its end-user industries, with no noticeable turnaround in sight, management now expects to deliver 2023 revenues at the lower end of its previous guidance range; it has also tightened its EBITDA range (down by EUR50m at the mid-point). This implies that 2023 ROCE could fall short of its cost of capital, as earlier indicated by management. However, following the recent share price correction (-13% in the past 1 month) AlsterResearch’s analysts upgrade the rating to BUY from HOLD, at a lower PT of EUR 135.00 (old: EUR 138.00). The full update can be downloaded under https://www.research-hub.de/companies/Wacker%20Chemie%20AG

Facing a persistently tough macroeconomic environment, the German retailer of consumer electronics fared relatively well, showing a yoy sales growth of 4.7% for the full year, and 2.4% in Q4, adjusted for currency and portfolio effects. As was the case for the full year, Q4 was also driven by entertainment products, while demand for brown goods, such as TV sets, remained soft. The preliminary adjusted FY EBIT of approx. EUR 240m landed slightly ahead of expectations. While no guidance update was issued, the management is confident for the December quarter due to significantly improved product availability and proper preparation of marketing campaigns. Still, macroeconomic uncertainties continue to impact visibility. AlsterResearch’s PT and rating (EUR 2.45, BUY) remain unchanged pending forecast revision following the company’s final annual report on December 18, 2023. The full update can be downloaded under https://www.research-hub.de/companies/Ceconomy%20AG

Beiersdorf’s Q3 2023 results were a mixed bag. Organic sales growth of 9% yoy in Q3 fell slightly short of consensus expectations of c. 9.5% yoy. While Derma and Nivea continued to perform well, destocking at La Prairie and the resultant 28% yoy drop in this segment’s organic sales came in as a negative surprise. Encouragingly, management is hopeful that the destocking exercise will complete for La Prairie by end Q4 and sales should recover from 2024. Meanwhile, on the back of solid demand in Derma and Nivea, management raised its org. sales growth guidance for the consumer segment and the overall company to low double-digit yoy (vs high single to low double digit yoy previously) and reiterated its EBIT margin outlook of reaching slightly above 2022 levels. AlsterResearch’s analysts acknowledge the strength of Beiersdorf’s brands, its ability to pass on input cost inflation, and the progress it is making in its C.A.R.E.+ strategy; however, they believe all these positives are already priced in. Therefore, AlsterResearch reiterates to HOLD with a slightly higher PT of EUR 133.00 (old: EUR 131.00). The full update can be downloaded under https://www.research-hub.de/companies/Beiersdorf%20AG

Symrise’s Q3 organic (org.) sales growth was ahead of consensus expectations and was broadly sustained at 6% yoy, similar to the level seen in Q2. Org. sales growth in the Taste, Nutrition, and Health segment decelerated; in contrast, Scent and Care saw an uptick. However, the reported revenue line continued to reel under pressure from unfavorable currency movements. Citing volatility in end markets and persistent inflationary headwinds, management reiterated its conservative outlook for 2023, which translates into a decline in org. sales growth in Q4. That said, this also indicates management’s focus on delivering on profitability. Given the tough market environment, AlsterResearch’s analysts will be watching the progress on org. sales growth and margin development closely. For now, AlsterResearch reiterates to SELL with a PT of EUR 83.00, as Symrise remains richly valued. The full update can be downloaded under https://www.research-hub.de/companies/research/Symrise%20AG

Traton reported a reasonable set of results in Q3. Sales and adjusted (adj.) EBIT beat consensus by 4% and 13%, respectively. Normalisation of demand after a strong 2022, some pull-back due to economic/financing headwinds in Europe and South America, and a limited opening of the order book for 2024 in the US impacted order inflow (-30% yoy). That said, management is confident of the overall demand situation and noted that the order backlog remains at high levels. While Traton reiterated its conservative sales and volume outlook for 2023, it raised its guidance for adj. EBIT margin and cash flow, indicating its confidence in managing costs, deliveries, and working capital. AlsterResearch’s analysts remain constructive on Traton’s investment case, backed by the brand strength of Navistar, Scania, and MAN and increasing synergies between brands. AlsterResearch’s analysts reiterate their BUY rating on the stock with an unchanged PT of EUR 27.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE