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Original-Research: Multitude SE - from NuWays AG

23.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to Multitude SE

Company Name: Multitude SE
ISIN: FI4000106299

Reason for the research: Update
Recommendation: BUY
from: 23.08.2024
Target price: EUR 12.00
Last rating change:
Analyst: Frederik Jarchow

Q2 with improved profitability // FY24 guidance confirmed

Topic: Multitude reported a strong set of Q2 figures with improved bottom
line, above our estimates. Further, management confirmed its FY24 EBIT
guidance. In detail:

* Interest income came in at EUR 64.7m (16% yoy, 1% qoq), below our
estimates of EUR 67.2m, due to a lower Consumer Banking topline (-1% qoq,
9% yoy, vs eNuW: EUR 56.6m) overcompensated by the strong growth in the
SME banking to EUR 8.3m (8% qoq, 47% yoy, vs eNuW: EUR 8.1m) and in the
Wholesale Banking to EUR 2.8m (22% qoq, 183% yoy, vs eNuW: EUR 2.5m). The
net loan book (NAR) grew only slightly to EUR 594m (1% qoq, 15% yoy, vs
eNuW: EUR 600m), while the debt investments (Wholesale Banking) increased
significantly to EUR 103m (51% qoq, 69% yoy, vs eNuW: EUR 80m).

* EBIT jumped to EUR 16.8m (45% qoq, 44% yoy), mainly driven by lower
impairments that are back on track at only EUR 23.8m (-16% qoq, 17% yoy,
vs eNuW: EUR 26.9m) or 36.9% of sales, while S&M, personnel and other
operating expenses remained stable. As anticipated, interested expenses
came in higher at EUR 11.4m (31% qoq, 115% yoy, eNuW: EUR 9.4m), caused by
1) the growth of the loan book, 2) the higher avg interest costs that
move with a delay of c. 6-18 months (eNuW) to the ECB rate and 3) a EUR
1.4m bond-related one-off. Still, EBT of EUR 5.4m (80% qoq, -21% yoy),
carried by the lower impairments, beat our expectation (eNuW: EUR 4.8m).

Overall, Multitude delivered a strong Q2 with improved risk management
visible in declining impairments and ongoing tight cost control resulting in
stable OPEX. While the Consumer Banking is currently the only EBIT
contributor, we expect the strong growth of the loan book in the SME and
Wholesale Banking to materialize within the next quarters resulting in
meaningful EBIT contribution. With that, the confirmed EBIT guidance of EUR
67.5m looks achievable. Nevertheless, we play it safe expecting only EUR 61.4m
EBIT in FY24 as of now, leaving room for upgrades.

For a growing, highly profitable, resilient and dividend paying company the
stock still looks undebatable cheap trading at only 4x PEŽ25.

BUY with an unchanged PT of EUR 12 PT, based on our residual income model.
Hence, Multitude remains one of our NuWays Alpha picks for FY24.

You can download the research here: http://www.more-ir.de/d/30601.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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1973565 23.08.2024 CET/CEST

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