Kion Group reported preliminary Q4 numbers that missed consensus estimates in terms of net income by 30% while adjusted EBIT at Supply Chain Solutions (SCS) fell short by 22%. Results were impacted by one-offs (including increased expenses related to completion of a client project at SCS) and higher interest expense. Encouragingly, free cash flow (FCF) surpassed the group’s 2023 guidance, and management stated that all other key line items for Q4 and full year were in line with market expectations and guidance. Overall, 2023 results have been decent, and AlsterResearch’s analysts look forward to more colour on the 2024 outlook at the time of the full release (on 29 February). AlsterResearch’s analysts reiterate their BUY recommendation at an unchanged price target of EUR 46.00. AlsterResearch’s analysts shall revisit their estimates after the full results are available. The full update can be downloaded under https://www.research-hub.de/companies/Kion%20Group%20AG

tonies hosted a conference call today to introduce the new CEO Tobias Wann to analysts. Tobias succeeds co-founders Patric Faßbender and Marcus Stahl, who have stepped down from their roles but will remain shareholders and advisors. With 20 years of executive experience, Tobias brings expertise in scaling platform businesses internationally, demonstrated through his previous roles at VeriSign, HomeAway, @Leisure Group, OYO and Xempus. AlsterResearch’s analysts believe his background makes him well suited to lead tonies' further growth. AlsterResearch reiterates the BUY rating on tonies with an unchanged target price of EUR 7.70. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE

In light of the constant threat of cyberattacks, as demonstrated by the recent examples of Varta AG and PSI Software AG, cyan AG comes into the spotlight, announcing a 71% yoy increase of end customers in 2023. At the end of 2023, cyan sold its BSS/OSS business (i-new) to the Compax Group, an Austrian provider of business support systems (BSS) and mobile virtual network operators (MVNO) solutions. Under the leadership of the new CEO Thomas Kicker, who has extensive experience in the telecoms sector, the company is now fully focused on cybersecurity. After a 47% rise in the share price since the i-new sale, AlsterResearch still expects more upside once the market is provided with more substance on the strategy and outlook. The price target and rating remain unchanged with reference to a pending update of the model. The full update can be downloaded under https://www.research-hub.de/companies/cyan%20AG

Multitude’s credit rating has been updated by the US rating agency “Fitch”. Accordingly, Fitch has upgraded the outlooks of Multitude SE and its wholly owned subsidiary Multitude Bank plc (based in Malta) from "stable" to "positive". Since 2021, Multitude has reinvented itself and this is now being recognized by Fitch. According to the rating agency, the upgrade reflects in particular the bank's improved outlook and business volumes. This is complemented by a broader diversification and improved profitability, as well as adequate capitalization supported by Multitude Bank's. In the view of AlsterResearch’s analysts, Multitude is likely to reach its FY23 targets of EUR 45m (eAR EUR 44m). This target was reaffirmed at AlsterResearch’s most recent roundtable meeting with CFO Eggert (video available: research-hub.de/events). AlsterResearch believes that Multitude is still attractively valued (P/E of only 6.0x in 24E; dividend yield of >6.0% 24E) and therefore, it remains a BUY-rating with a price target of EUR 12.60. The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

Q4 prelims: Operating turnaround intact; chg. est. Topic: R. Stahl released solid FY23 preliminary figures, exceeding the company’s guidance on the topline. However, Q4 profitability and order intake were slightly weaker than expected due to a soft chemical industry in the DACH-region. Preliminary Q4 sales came in at € 89.9m (eNuW: [ … ]

Friedrich Vorwerk Group's (FVG) order intake was impressive last year, with an order intake of EUR 1bn after 9M alone (c. EUR 318m 9M 22), of which FVG received EUR 690m alone in Q3 23 due to the signing of the A-Nord power project (offshore grid connection system). The order backlog amounted to EUR 1.05bn at the end of Q3 23 (c. EUR 372m Q3 22). The backlog of old, poorly priced contracts is expected to be cleared in Q4 23. The EBIT margin (c. 3% FY23E; compared to 16% FY21) is expected to recover slowly in FY24 as better terms are agreed in new contracts. However the strong growth will require new hires, which will most likely lead to a slower improvement in margins initially. Nevertheless, FVG should continue to benefit from very good growth prospects driven by infrastructure renewal in Germany. Based on the strong order flow, AlsterResearch’s analysts confirm their BUY rating and their PT of EUR 21.00. https://www.research-hub.de/companies/Friedrich%20Vorwerk%20Group%20SE

The year got off to a good start in January as Photon Energy's own photovoltaic power plant production increased by 42%, outpacing capacity growth of +39%. Against the backdrop of persistently low electricity prices, Photon Energy is returning to the feed-in tariff (FIT) in the Czech Republic and Hungary. The return to FIT in Hungary (at prices expected to be above market) de-risks over 1/3 of production capacity, which AlsterResearch’s analysts view positively in the current challenging market environment. Finally, Photon Energy has appointed David Forth as its new CFO with effect from 1 February, following the interim tenure of CEO Georg Hotar. David Forth brings with him extensive international management experience, including notable positions at BP, BAT, Schneider, Adecco, Costa Coffee and Dr Martens. AlsterResearch’s analysts reiterate their BUY recommendation with a target price of EUR 3.20. The full update can be downloaded under https://www.research-hub.de/companies/Photon%20Energy%20NV

Sam Altman, CEO of OpenAI, recently garnered attention for reportedly seeking an unprecedented investment ranging from USD 5,000 to USD 7,000 billion to address the shortage of AI-specific chips, crucial for training and running large language models like ChatGPT, Microsoft Copilot, and Google Gemini. While the scale of funding appears implausible, the shortage of AI chips is a genuine issue, driving up prices and causing project delays, with no immediate solution in sight other than expanding chip production capacity. Suess MicroTec is a key supplier of backend tools used in the production of GPUs and high-bandwidth memory, both needed in AI, which could drive growth for many years. In Q4, AlsterResearch’s analysts estimate that AI-related order intake could contribute up to 1/3 of the total, positioning Suess MicroTec as an interesting play on the AI boom. AlsterResearch’s analysts raise their estimates to reflect the accelerating momentum and arrive at a new price target of EUR 41.00 (old: EUR 32.30). The company also trades at a significant discount to slower growing peers. BUY.

Strategic transactions closed; est. & PT chg. Marley Spoon Group ('MSG') closed the strategic transactions announced on January 31st. Here is what you need to know: Acquisition of BistroMD. MSG closed the acquisition of BistroMD, a leading doctor-designed ready-toeat (RTE) meal plan company in the US (c. € 35m revenues in 2023), offe [ … ]

First Berlin Equity Research has published a research update on CEL-SCI Corporation (ISIN: US1508376076). Analyst Christian Orquera reiterated his BUY rating and maintained his USD 8.40 price target. Abstract: CEL-SCI announced that it has completed commissioning of its US manufacturing facility for Multikine, its lead drug candidate for advanc [ … ]