MTU ended 2023 with good underlying numbers according to its preliminary release– adj. revenues were up 19% yoy and adj. EBIT rose by 25% yoy, both meeting the company’s guidance. Also, the margin improved by 60bps yoy to 12.9%. However, as expected, full-year numbers were lackluster, owing to the geared turbofan (GTF) inspection-related impact (ca EUR 1bn in Q3) on the top line and EBIT, resulting in a net loss of EUR 97m. Q4 did not have any major surprises; revenues and adj. EBIT were 2% and 1% ahead of consensus, respectively. Management’s guidance for FY 2024 was conservative, expecting top-line growth of 17% yoy (adj.) and an EBIT margin of over 12%, as commercial spares are projected to grow only in low teens percentage yoy (vs high teens in 2023), due to supply chain constraints. MTU has not provided any further update on the GTF inspection, and AlsterResearch’s analysts do not see any material burden from this ahead. AlsterResearch continues to believe that fundamental drivers for MTU remain strong, including high commercial aircraft production rates, a favorable narrow body market and military business, and healthy MRO and aftermarket demand. AlsterResearch’s analysts reiterate their BUY rating at a revised price target of EUR 245.00 (old: EUR 230.00). The full update can be downloaded under https://www.research-hub.de/companies/MTU%20Aero%20Engines%20AG

123fahrschule (123fs) presented its annual report for the past fiscal year. While revenues increased by 23.7% yoy to EUR 20.6m, fully in line with expectations, earnings (EBITDA) were below expectations. Although EBITDA improved significantly from EUR -1.8m in FY22 to EUR -0.9m, adjusted EBITDA was EUR -0.3m, slightly below the expected break-even point. 2023 was characterized by restructuring, and the year 2024 will by characterized by optimization. The focus has been and will continue to be on breaking even, driven by reducing overheads. The number of driving instructors employed is only stable at 150 (previous year: 151), which is why revenue dynamic for 2024 is expected to be somewhat more restrained. Overall, 123fs is slowing growth in 2024 in order to start with a full tank in 2025. AlsterResearch’s analysts expect lower sales momentum but higher profitability, which brings the experts to a new price target of EUR 6.60 (old: EUR 7.20). The rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/research/123fahrschule%20SE

Aixtron's Q4 revenues were slightly ahead of expectations at EUR 214m, up 17% yoy, although EBIT fell short due to increased R&D spending and free cash flow disappointed as buffer inventory was built. Aixtron's FY24 revenue guidance of EUR 630m to EUR 720m, with a focus on the upper end of the range, may be a stretch target against the backdrop of a flat order backlog, a slowdown in SiC demand in 2024 and possible delayed MicroLED adoption following the closure of the AMS-Osram fab in Malaysia. The FY24 margin guidance is disappointing due to increased R&D spending and a product mix shift towards traditional LEDs. Nevertheless, with a strong competitive position and promising structural growth prospects in the long term, Aixtron is attractive after the recent share price correction: AlsterResearch’s analysts upgrade to BUY from HOLD with a new price target of EUR 33.00 (down from EUR 38.00). The full update can be downloaded under https://www.research-hub.de/companies/AIXTRON%20SE

AUTO1 Group’s (AUTO1) Q4 2023 results were broadly as expected. Revenues and gross profits were in line with consensus, while adj. EBITDA loss was narrower. The company achieved its revenue and gross profit target for FY23 and delivered a smaller-than-guided adj. EBITDA loss. Overall, AUTO1 was progressing well in terms of merchant and retail gross profit per unit (GPU), although growth in terms of volumes and average selling prices remained muted. In the introduced 2024 outlook, management is optimistic of seeing a recovery in volumes and a good increase in gross profit; however, adj. EBITDA breakeven is expected towards the end of 2024 or early 2025. In AlsterResearch’s view, multiple headwinds including used car availability, inflation, and high interest rates could hamper near-term growth prospects. That said, AlsterResearch believes that AUTO1 will continue to improve efficiency and profitability goals. Incorporating the conservative guidance, AlsterResearch’s analysts adjust their earnings estimates for 2024/25 downwards. AlsterResearch comes to a new PT of EUR 8.00 (old: EUR 9.00), thus confirming the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

Scout24 reported solid Q4 2023 results and met its FY23 guidance. Revenue momentum remained strong across segments. Meanwhile, a favorable mix and strict cost control helped deliver improvements of 2.2ppt yoy and 1.1ppt qoq of the operating (op.) EBITDA margin to 59.9% in Q4. Scout24 continues to benefit from healthy demand for its ImmoScout24 core products, pay-per-ad listings, and growing agent memberships and subscriber base. Management is optimistic of delivering on revenue growth and margin improvement over the medium term, which is encouraging. It is also committed to attaining a dividend payout ratio of 30%-50% of adj. net income and pursuing share buybacks. AlsterResearch’s analysts adjust their estimates slightly, reflecting the medium-term outlook. The experts confirm their price target of EUR 65.00 and their HOLD rating. The full update can be downloaded under https://www.research-hub.de/companies/research/Scout24%20SE

Nordex published its FY23 results, showing the expected strong revenue growth of 14.2% yoy. FY23 revenues of EUR 6.5bn thus exceeded the guidance range of EUR 5.6- 6.1bn. In addition, Nordex returned to positive EBITDA of EUR 2m after a disastrous FY22. The working capital ratio of -11.5% was also much better than the guidance for 23 of -9%. The new guidance paints a very positive picture: management aims to increase revenues to EUR 7-7.7bn, EBITDA margin is targeted in the range of 2-4% and capex is planned to be only EUR 175m, as there is still overcapacity. All this confirms AlsterResearch’s positive view that Nordex is on track for profitable growth with high positive cash flows from 2025. The long-term outlook is intact, driven by the continued strength of the European market and the recovering US market, and AlsterResearch’s analysts reiterate their BUY rating with an unchanged PT of EUR 22.00, which represents an upside of >100%. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.

Cicor has made another addition to its portfolio with Evolution Medtec (EM), a specialized provider of comprehensive engineering services for medical and paramedical applications. While enhancing its R&D capabilities, Cicor has the potential to leverage on EM’s longstanding customer relations of medium and large medical device and industrial companies. In addition, EM’s location in Romania should be beneficial for Cicor’s advantageous cost profile in regard to its nearshored manufacturing sites. Well weighted in pace and focused on integration, AlsterResearch’s analysts believe that Cicor will be able to benefit from synergies. In this way, the company is continuing its path to becoming one of the leading EMS solution providers in Europe. AlsterResearch confirms the PT of CHF 78.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Cicor%20Technologies%20Ltd

SUESS MicroTec reported strong Q4 and FY23 results, exceeding expectations for revenues, EBIT, and order intake. Order intake benefited from strong demand for temporary bonders used in AI applications, especially for high-bandwidth memory production, but also for TSMC's CoWoS process for the production of Nvidia's latest AI chips. While the gross margin was slightly lower than expected, the EBIT margin was higher due to better than expected operational efficiencies. The company also raised its guidance for extraordinary income related to the divestment of the MicroOptics division. AlsterResearch’s analysts raise their target price to EUR 42.00 (previously EUR 41.00) and confirm their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

123fahrschule (123fs) has received a political boost yesterday, triggered in particular by the CDU and its transport expert Florian Müller. A parliamentary group has developed a concept for the digitalization of driver training. The goal is to 1) reduce the cost of driver's licenses for students by 25% and 2) to make driver's licenses accessible again despite a significant lack of driving instructors. In Germany, the pressure to go digital is growing and growing, now also confirmed by this political initiative. AlsterResearch’s analysts therefore believe that 123fs is still in the best position to benefit from the structural change. The first step will be virtual teaching, which is expected to become law in 2024. Then 123fs will begin to scale its platform and unleash its growth potentials. Meanwhile, 123fs’ management can focus on operational growth. AlsterResearch’s analyst confirm their DCF-based target price of EUR 7.20 and their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/123fahrschule%20SE

Koenig & Bauer (SKB) reported prelim. FY23 results in line with guidance but ahead of estimates, with sales of EUR 1.33bn, up 12% yoy, driven by strong growth of over 23% in the Digital & Webfed segment. FY23 EBIT reached nearly EUR 30m, a 36% improvement over FY22, reflecting the skillful management of supply chain challenges. After a temporarily weak Q3, Q4 sales were up almost 15% yoy, with the EBIT margin improving by some 70 basis points to 7.3%. A large banknote order from the US helped to revive order intake (c. EUR 1.29bn) in the last part of FY23, once again demonstrating SKB's high quality target customers. SKB ended the year on a high note and in the view of AlsterResearch’s analysts, the rebound in customer demand in Q4 was reassuring, with improving growth rates, margins, and order intake. Even if the outlook for FY24 remains somewhat disappointing, it remains to be seen, whether management will stick to its mid-term guidance of revenues of around EUR 1.8 bn and an EBIT margin of 8-9%. AlsterResearch reiterates the BUY rating with an unchanged PT of EUR 20.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG