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.

New chapter of growth; added to NuWays AlphaList ZEAL has openend a new chapter of growth stemming from rising monetization in the Lottery business and also the Games business from FY'24e onwards. In sum, we expect sales growth of 25% for this year and a sales CAGR 23-26e of 17%, here's why: Elevated lottery sales growth: ZEAL has relied on a [ … ]

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.

Suess MicroTec's final FY23 figures and Q4 performance were in line with preliminary figures, which at the time surprised positively. Looking ahead to FY24, the company anticipates strong revenue growth, supported by a substantial backlog conversion and sustained AI-driven momentum. Although gross and EBIT margin guidance for FY24 falls slightly below expectations, they meet expectations on an absolute level. The cash inflow of EUR 75m from the divestment of MicroOptics is earmarked for increased capital expenditure into capacity and IT to position itself for future growth and operational enhancements. mwb research upgrades estimates from FY25 on and reiterates to BUY with an upgraded price target of EUR 44.00 (old: EUR 42.00). The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Mgmt confirms negotiations regarding bond restructuring Topic: DEMIRE released an ad-hoc, stating that the company has entered negotiations with a group of bondholders (Ad hoc Group), which is said to hold “well over 50%' of the outstanding nominal amount, regarding the restructuring of its unsecured corporate bond. Mind you, the corporat [ … ]

Strong Q4 profitability // conservative initial FY24 guidance; chg. Q4 sales increased by 5% yoy to € 34.6m (eNuW € 37.6m) as the company was able to book several development projects towards the end of the year, realized first revenues from larger plant phenotyping orders (Green Tech FY segment sales +44% yoy to ~ €25m) and over [ … ]