Westwing reported detailed 2023 numbers, with broadly flat full-year revenues and an improving gross margin, owing to controlled fulfillment expenses, and general overheads. Overall, Westwing reported a reasonable set of results – both revenues and adj. EBITDA reached the upper half of its guidance range. Despite a good start to the year, with GMV up 6% YTD, management does not expect a rebound in consumer demand in 2024. It gave a cautious outlook for 2024, guiding for revenues of EUR 415m-EUR 445m (-3% to +4% yoy) and adj. EBITDA of EUR 14m-EUR 24m. For 2024, it has planned a number of initiatives to reduce business complexity, improve scalability of its tech platform, expand its presence in Europe, and focus on premium brand positioning. In the analysts’ view, these near-term initiatives should take the company on a sustainable revenue and profit growth trajectory. mwb research confirms the price target of EUR 10.00 and BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

TAKKT's final FY23 results closely align with earlier preliminary figures, with full-year revenues and EBITDA meeting guidance and free cash flow rising by 31% year-on-year. However, Q4 saw a 13% revenue decline to EUR 285m, attributed to an 11.3% organic drop and currency fluctuations amid subdued consumer demand. For FY23, TAKKT proposes dividends of EUR 0.60 regular and EUR 0.40 special per share, in line with estimates. Amid a sluggish economic environment, FY24 forecasts anticipate organic turnover to decrease, with adjusted EBITDA margins expected at 8.0-9.5%. Cost reductions, though initially impacting earnings, aim to restore growth by 2025. Considering challenges ahead, mwb research downgrades TAKKT to HOLD from BUY, triggered by lower earnings estimates and a reduced price target of EUR 13.00 (former EUR 15.00). The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Cicor Technologies closed the acquisition of TT Electronics IoT Solutions. The carve-out from TT Electronics PLC will add required capacities for local production in the UK, strengthening Cicor’s position in the Aerospace & Defense market. A successful post-merger integration should translate to further market share gains. mwb research confirms the PT and rating. Next week, mwb research will host a roundtable with Cicor’s management. CEO Alexander Hagemann and CFO Peter Neumann will provide a comprehensive overview over the company’s business model and strategy, followed by a Q&A session. Sign up under https://research-hub.de/events/registration/2024-04-08-14-00/CICN-SW to participate in the event. The full update can be downloaded under https://www.research-hub.de/companies/Cicor%20Technologies%20Ltd

Dermapharm (DMP) reported detailed results for 2023 that were in line with its preliminary numbers. Full-year revenues of EUR 1.14bn (+11% yoy) surpassed its guidance and adj. EBITDA of EUR 310m (-14% yoy) reached the upper-end of its target. These numbers are healthy, given DMP no longer enjoys tailwinds from COVID-19 vaccine sales as seen in 2021-2022. Management is optimistic about seeing a recovery in Europe and good traction in non-European markets in 2024. Furthermore, it expects in-house launches and synergies from Arkopharma to drive its performance ahead. DMP confirmed its guidance for 2024, which reflects normalizing but only stable growth rates on a better comparable basis. mwb research still believes that the complementary segments will drive sales and synergies, but the only stable outlook leads the analysts us to lower their assumptions, resulting in a lower price target of EUR 41.50 (old EUR 48.00). But the rating remains BUY. The full update can be downloaded under research-hub.de/companies/Dermapharm%20Holding%20SE

Kontron reported impressive results in 2023. Revenues and EBITDA both rose in mid-teens % yoy, well supported by a higher demand. Steady demand, an easing supply chain, improved chip availability, and process optimization initiatives boosted the 2023 numbers. Order backlog remains impressive at EUR 1.7bn (0.9x 2024e revenues) and gives good revenue visibility into 2024. Management has reiterated its revenue and net profit guidance for 2024. 2023 results reflect the steady progress Kontron has been making in strengthening its IoT offerings. The strategic acquisitions of Telit Cinterion’s Cellular Automotive Module Unit, Comlab, Hartmann, W-IE-NE-R and Bsquare should push Kontron’s market presence and underpin its valuation. It has terminated its share buyback program in January 2024 to finance the acquisition of Katek. mwb research maintains its BUY rating with an unchanged price target of EUR 34.00. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

UniDevice faced a significant setback as its subsidiary, PPA International AG, came under investigation for tax evasion, leading to a near-complete halt in business operations. In addition, management's authority is limited amid the turmoil, the duration of which is uncertain. PPA International is critical to UniDevice's B2B electronics brokerage business. Although UniDevice's preliminary FY23 results were disappointing, a promising start to FY24 suggested a solid performance. However, the potential impact of the investigation clouds mwb research’s forecasts. Risks include additional tax liabilities and reputational damage, leading the analysts of mwb research to suspend their rating (former BUY) and price target (former EUR 2.30). With the share price down by c. 90% and a EUR 3.4m bond repayment looming at year end, UniDevice's financial outlook remains precarious until further clarity is provided. The full update can be downloaded under https://www.research-hub.de/companies/UniDevice%20AG.

Rational ended 2023 on a positive note in line with its strong prelims. FY23 sales grew at a healthy 10% yoy to a record high of EUR 1.13bn, despite a high comparable base, bolstered by strong overseas demand for iCombo products. Meanwhile, operating leverage benefits and easing input and logistics costs supported the EBIT line (+17% yoy to EUR 277m). Cash flow generation was robust and the proposed dividend payout ratio was high at 71%. Management expects the demand environment to remain steady and targets volume and sales growth in the mid-to-high single-digit % range yoy, higher yoy gross profit, and a stable EBIT margin in 2024. The latest results and positive outlook again reflect the outstanding quality of Rational's business model, which allows price increases and high margins, owing to the lucrative after-sales business. Moreover, iHexagon – the recently introduced new product category – is set to target high-demand settings, such as canteens and fast-food outlets, potentially making it another cumulative EUR bn+ blockbuster product. mwb research reiterates the HOLD rating with unchanged PT of EUR 750.00. The full update can be downloaded under https://www.research-hub.de/companies/research/RATIONAL%20AG

WashTec reported detailed 2023 results, in line with its prelims. Full-year revenues grew 2% yoy to reach a new record level of EUR 490m, while EBIT grew disproportionately by 10% yoy to EUR 42m, owing to successful cost pass throughs, active cost management, and savings emanating from the company’s efficiency program in North America. Both these lines were in line with consensus at the time of pre-release and met its guidance. Robust FCF generation (EUR 46m; 2.8x 2022 level) and sound balance sheet ratios were particularly impressive, helping management propose a stable and high dividend of EUR 2.20 per share (105% payout), implying an attractive yield of 6%. After a strong 2023, management’s guidance for 2024 appeared a bit light – revenues to remain stable yoy (+ 3%) and EBIT to increase in mid-single-digit % yoy. This is understandable, given the tough macro environment, and reflects certain cooling effects WashTec is currently experiencing in the market. With a current FCF yield of 9-10%, mwb research believes the stock is undervalued. Therefore, the analysts reiterate their BUY rating at a slightly lower PT of EUR 53.00 (old: EUR 55.00). The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Mister Spex reported FY23 results in line with expectations, with sales up 6% yoy to EUR 224m. Despite challenging consumer sentiment, the company managed to gain market share, particularly in its key market of Germany. Adjusted EBITDA margins were also in line with the company's guidance at 0.4%, with a significant swing of EUR 9.2m yoy. As a result, Mister Spex was able to further reduce its cash burn, leaving the company with a comfortable cash position of EUR 111m. For FY24, Mister Spex expects low to mid-single digit revenue growth and will continue to focus on profitability through its Lean 4 Leverage efficiency program. Although the guidance is slightly below mwb research’s expectations, the focus on profitability is in line with market trends. Mwb research maintains its BUY rating but slightly adjust its PT to EUR 6.60 (old EUR 7.30), which still offers ~90% upside. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

At yesterday's mwb research online roundtable, Felix Zander, Vice President & Head of Investor Relations at Nordex, gave a convincing overview of the growth potential in the onshore wind market and the company's ambitions for the future. Nordex is making steady progress and announced further major orders for 336 MW in South Africa, 98 MW in Sweden and 264 MW in Lithuania (mwb est.: sales of around EUR 0.6bn) with long-term service agreements. The 1Q24 results compared to 1Q23 will show whether the long-term turnaround to profitable growth has been achieved (release 15 May 24). mwb research reiterates its BUY rating and confirms its PT of EUR 22.00. The analysts believe that Nordex will take the leap in 2024 and that an c. 81% upside is not too optimistic, as Nordex gets profitable and with its sizeable order intake and backlog. A recording of the roundtable, which included an exciting Q&A session, can be found at research-hub.de/events. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.