Original-Research: Singulus Technologies AG (von NuWays AG): Hold

Classification of NuWays AG to Singulus Technologies AG

Company Name:	Singulus Technologies AG
ISIN:	DE000A1681X5
Reason for the research:	Update
Recommendation:	Hold
from:	11.11.2024
Target price:	EUR 1.60
Target price on sight of:	12 months
Last rating change:
Analyst:	Konstantin Völk

Solid preliminary Q3 numbers // FY guidance revised; chg. est.

Topic: Last Thursday Singulus released solid preliminary Q3 numbers with sales in line and EBIT above our estimates. Further, the company revised its FY sales and EBIT guidance.

Preliminary sales increased 44% yoy to € 20.3m (eNuW: € 21m) from a low comparable base due to project postponements in H2’23 and supported by a solid order backlog. EBIT came in at € 0.7m, considerably above last year and our estimates (eNuW: € -1.5m; € -4.9m in Q3’23) thanks to a higher sales contribution from the more profitable Semiconductor Segment. With € 24.4m order intake in H1’24e (47% of total order intake), the Semiconductor segment experienced a strong demand which should have benefited gross-margins in Q3.

In addition, the company has several cost saving measures in place: Already in 2022 Singulus closed the Fürstenfeldbruck site, which saves the company c. € 2m in OPEX (as stated in the Q1’23 CC). Beyond that, Singulus is relocating parts of the assembly for thin-film solar-modules to China. This will not only reduce shipping costs but also save money as several components for solar modules are cheaper in China.

Order intake increased 126% yoy to € 18.5m from a muted comparable base, leading to a solid order backlog of € 69m (vs. € 61m in Q3’23).

FY guidance revised: Singulus reduced its FY24e forecast due to the delay of orders in the Solar segment, which have been incorporated in the FY sales forecast. The company expects now sales in the
range of € 80-90m (eNuW old: € 86m) and EBIT between € 1.0-3.5m (eNuW old: € -1.9m). As the order intake came in line with our expectations, we leave our Q4 sales estimate unchanged and hence estimate € 85m for FY24e. Due to the positive EBIT surprise in Q3, we increased our FY estimate to € 1.1m. All things considered, the new guidance looks now plausible in our view although we are on the lower end of the EBIT range.

Singulus is still operating sub-scale, but as soon as sales have increased enough to ensure profitability on a sustainable level and long-term financing is secured, one should refocus again on the improving operating business. Reiterate HOLD with an unchanged PT of € 1.60 based on DCF.

You can download the research here: http://www.more-ir.de/d/31255.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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