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Original-Research: Singulus Technologies AG - from NuWays AG

Classification of NuWays AG to Singulus Technologies AG

Company Name: Singulus Technologies AG
ISIN: DE000A1681X5

Reason for the research: Update
Recommendation: Halten
from: 28.06.2024
Target price: EUR 1.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Konstantin Völk

Recovery of order intake should support growth in FY24e

Topic: After a temperate demand from customers in the last fiscal year,
FY24e looks more encouraging. With several promising projects in the
pipeline, signaled by a strong order intake of EUR 33m in the first quarter
(vs. EUR 43m in entire FY23), we expect better results for FY24e.

Solar: In FY24e, Solar should again be the most important segment for
Singulus (eNuW: EUR 50m; +28% yoy) thanks to a strong demand from CNBM and
potential follow-up orders from Enel. Last year, Singulus already delivered
five machines for Enel's 3Sun Gigafactory in Sicilia. Currently, Enel is
building another heterojunction solar panel facility in Oklahoma for c. $
1bn supported by the IRA, which could lead to new orders in FY24e.

Hydrogen: In the field of hydrogen (part of the Semiconductor segment),
Singulus is working in cooperation with Bosch on the development of coating
systems for the sputtering of bipolar plates in fuel cells and
electrolyzers. The first machine (eNuW: Mid. single digit EUR m amount)
should be delivered by the end of this year. While hydrogen will play a
subordinated role in the short to midterm, it could become a material
portion of Singulus' revenue in the long run.

Proposal for bond extension failed: At the second bondholder meeting on May
21, 69% of the present bondholders voted in favor of the company's proposal
to extend the EUR 12m bearer bonds maturing on July 22, 2026 for another
three years. As 75% of the votes would have been required for approval, the
proposal failed. Solvency remains a key issue for Singulus, which is highly
dependent on its largest shareholder and customer CNBM, which provides
direct and indirect financing for EUR 30m of the company's outstanding debt.

Operating breakeven plausible: Supported by a strong order intake of EUR 33m
in Q1 (+136% yoy) it looks plausible for Singulus to achieve breakeven in
operating income for FY24e (eNuW: EUR 0.2m) after five years of negative EBIT
(adjusted for the EUR 12.1m extraordinary income in FY22 from a property
sale).

Based on our estimates, the company has to reach close to EUR 100m in revenue
(eNuW FY24e: EUR 97m) to cover its costs, which seems in reach after a good
start into the year.

We reiterate HOLD with an unchanged PT of EUR 1.60 based on DCF.

You can download the research here:
http://www.more-ir.de/d/30109.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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-------------------transmitted by EQS Group AG.-------------------


The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.

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