Geratherm has announced that it has applied for short-time work at its Geratal plant because sales of clinical thermometers were below plan due to the mild winter. Clinical thermometers account for between 35% and 40% (mwb est.) of Geratherm's total sales. The company had already reported declining sales in the Healthcare Diagnostics business unit in H1 23 due to increasing competition from Asia. An unusually mild winter is an "unavoidable event" that qualifies as a reason for short-time work if it is expected that the economic situation will improve in the next twelve months to such an extent that a return to full-time work will occur. mwb research has adjusted its estimates to reflect a more cautious outlook for Healthcare Diagnostics, resulting in a new price target of EUR 9.15 (old: EUR 11.30), while maintaining the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Geratherm%20Medical%20AG

Bechtle reported detailed results for 2023 that were in line with its preliminary release. Despite a challenging economic environment, the company’s full-year revenues increased by 7% yoy to EUR 6.4bn (Q4: +8% yoy to EUR 1.9bn) and earnings before taxes (EBT) grew by 7% yoy to EUR 375m (Q4: +7% yoy to EUR 107m). At the time of prerelease, revenues were in line with mwb research’s estimates, while EBT had surprised positively. After the exceptional pandemic years of 2021 and 2022, key IT parameters are trending back towards "normal". Despite general moderation in demand for IT services, management issued an encouraging outlook, expecting to deliver revenue growth in the 5%-10% yoy range in 2024 and a stable yoy EBT margin of c. 5.8%. The company continues to pursue strategic M&As (has completed over 100 deals since inception) to expand its presence across Europe and widen its portfolio. Given that Bechtle is a leading IT player in Europe and many of its customers are still in the early stages of digitization, mwb research’s analysts expect the company to continue its success story. mwb research confirms the DCF-based price target of EUR 59.00 and BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

HelloFresh (HF) announced detailed 2023 numbers that were in line with its disappointing prelims and met its guidance, which it had downgraded in November. Revenues were flat yoy at EUR 7.6bn (+2.8% yoy in constant currencies [c.c.]) and adjusted EBITDA (AEBITDA) declined by 6% yoy to EUR 448m. At the time of pre-release, management had issued a lackluster outlook for 2024, which it has now confirmed. It continues to guide for revenue growth of 2%-8% yoy in c.c. and AEBITDA of EUR 350m - EUR 400m. As a major disappointment, acknowledging errors and misjudgments in its highly optimistic growth estimates for the meal kit business amid the declining customer base after removal of all pandemic-related restrictions, the company had withdrawn its mid-term targets at the time of pre-release. Now, resting on the positive growth prospects of the still young RTE business, the company must show that the targeted efficiency gains are achievable on the scale envisaged. mwb research broadly maintains the recently cut forecasts and reiterates the BUY rating at an unchanged price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/research/HelloFresh%20SE

The CHAPTERS Group published news on its development in FY23 and 2024 YTD. The company had an extremely busy year, adding 18 operating companies in 2023 to its portfolio and expanding into France by launching a local investment platform for VMS companies. Preliminary key figures for FY23 indicate dynamic growth both on the top and bottom line. The Base Value, CHAPTERS’ measure of intrinsic value, was increased from EUR 6.52 per share to EUR 8.00 per share. So far, the company’s transactions to date in 2024 indicate a continued high momentum. Backed with financial firepower and strong support from its shareholders, growth is picking up speed. Following an forecast adjustment, mwb research is raising the PT to EUR 24.00 (old: EUR 22.00). The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

Dermapharm (DMP) reported preliminary numbers for 2023, surpassing its revenue guidance and reaching the upper end of its adj. EBITDA target. Top-line of EUR 1.14bn (+11% yoy) and adj. EBITDA of EUR 310m (-14% yoy) were 1% and 2% ahead of consensus, respectively. Integration of Arkopharma Group (from Jan 23), organic growth in its existing portfolio, and its growing international presence in branded pharmaceuticals supported its top-line performance. Moreover, these largely negated the impact of discontinuation of the high-margin COVID-19 vaccine business since Q2. 2024 guidance points to gradually normalizing growth rates on a better comparable base (with one year of Arkopharma and nine months of nil COVID-19 vaccine sales). Management targets to report revenues of EUR 1.17bn - EUR 1.21bn (+5% yoy at the mid-point) and adj. EBITDA of EUR 305m - EUR 315m (flat yoy). mwb research’s analysts continue to hold a positive view on DMP, given good progress in its international growth strategy, diverse yet complementing segments, and resultant cost-saving synergies. mwb research’s analysts maintain their BUY rating with a fine-tuned price target of EUR 48.00 (old: EUR 49.00). The full update can be downloaded under research-hub.de/companies/Dermapharm%20Holding%20SE

Lanxess’ Q4 2023 results were dragged by weak demand and a consequent decline in prices and volumes. Q4 sales declined 27% yoy and missed consensus by 9%. Although, adj. EBITDA reduced by 45% yoy, due to lower plant utilisation, it was 4% ahead of consensus. For full year, the company generated adj. EBITDA of EUR 512m, meeting the lower end of the EUR 500-550m guidance range. In 2024, management expects the challenging demand environment to persist in H1 and expects a gradual improvement in H2. Against this backdrop, it gave an unexciting outlook – adj. EBITDA to reach moderately above 2023 levels but to remain significantly below normal levels. On the positive side, Lanxess has shown considerable progress in terms of FCF generation (EUR 526m in 2023) and net debt reduction (-35% yoy). It has been undertaking multiple cost-saving measures to structurally strengthen its business. Investors should view Lanxess' risk mitigation and profit enhancement initiatives positively in the tough global chemicals industry. mwb research’s analysts maintain their BUY rating at a lower PT of EUR 27.00 (old: EUR 29.00).The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

In February, production at Photon Energy's PV power plants increased by 20% year-on-year, but lagged capacity growth due to a 15% decline in specific yield caused by predominantly cloudy weather. Electricity prices in Europe continued to be under pressure, particularly in Hungary, reaching a new low of EUR 70.00/MWh. This confirms the validity of the return to a feed-in tariff from 1 April, which initially guarantees a price of around EUR 120/MWh. The company is strategically refocusing its business, reviewing projects in Hungary and Australia and selling parts of its pipelines in Poland and Romania. This shift is in line with Photon Energy's adjusted business model, which emphasizes electricity services over production, and supports mwb research’s BUY rating with a price target of EUR 3.05. The full update can be downloaded under https://www.research-hub.de/companies/Photon%20Energy%20NV

Yesterday, SGT German Private Equity (SGF) announced significant changes, including discontinuing its private equity asset management business and shifting focus to artificial intelligence (AI). Preliminary FY23 results revealed unexpected losses, attributed to failed PE transactions and write-downs. SGF repurchased shares to reverse the PE transaction and plans to operate under the new name "German AI Group." Despite uncertainties, SGF aims to capitalize on AI investment opportunities, leveraging Managing Director Christoph Gerlinger's expertise. While details on the new strategy are pending, SGF's track record and network instill confidence. mwb research’s estimates reflect these changes, but lack of clarity prompts caution. Despite the latest share price drop, mwb research maintains their BUY recommendation, with a revised PT of EUR 2.00 (old EUR 3.00), awaiting further updates on the company's strategy. The full update can be downloaded under https://www.research-hub.de/companies/SGT%20German%20Private%20Equity

For Zalando, it was a good Q4 in terms of EBIT improvement, as the company was able to beat market expectations, while revenues were largely in line. Overall, FY23 was rather difficult for the online fashion industry, which is reflected by Zalando’s c. 2% yoy top line decline. Alongside the annual report, the company presented a revamped strategy, which focuses on building an ecosystem around its two growth pillars, the B2C business, and B2B. In this context, Zalando has provided an outlook for the next 5 years until 2028. For FY24, Zalando is expecting a turnaround in terms of GMV and top line growth. After adjusting the model, mwb research's price target remains at EUR 32.00 and the BUY rating is confirmed. The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE

According to preliminary figures, Multitude increased revenues by 8.5% from EUR 212.5m to EUR 230.5m in 2023, exceeding expectations of EUR 225m. EBIT increased significantly to EUR 45.6m in 2023. The 45% or EUR 14.0m increase in EBIT was driven by higher sales, consistent cost management and the implementation of a leaner organization. As a result, consolidated net profit increased by 39.6% to EUR 16.4m (FY22: EUR 11.8m). For the fiscal year 2023, the Management will propose a dividend of EUR 0.19 per share (EUR 0.20 per share mwb est.), representing an impressive dividend yield of 4.4%. Multitude continues to build confidence in the capital markets: Management is delivering on its promises for the third year in a row and continues to forecast strong growth. mwb research’s analysts incorporate the numbers into their model and reiterate their view that a P/E of 6.4x 24E offers a favorable entry point. mwb research’s rating remains BUY with an unchanged price target of EUR 12.60. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE