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Original-Research: Multitude SE - from NuWays AG

11.03.2025 / 09:01 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: CH1398992755

Reason for the research: Update
Recommendation: Buy
from: 11.03.2025
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow

Bond successfully placed // Stake in Lea Bank increased; chg

Topic: Last week, Multitude announced to have successfully placed a EUR 25m
Tier 2 bond via its subsidiary Multitude bank. Multitude has also further
increased its stake in Lea Bank to 20.9% (initial stake was 9.9%). In
detail:

Tier 2 bond placement to strengthen capital base and to fulfil Tier 2
capital requirements. The conditions (pricing of 99% of the aggregate
principal amount and a coupon of 3 months EURIBOR plus 11.00% p.a.) are not
exactly favorable, as it is the first bond with that size placed via
Multitude bank but should improve with future potential bond placements
through Multitude bank. Importantly, the proceeds strengthen the capital
base of the bank and give the Group more flexibility when it comes to growth
and seizing attractive opportunities.

Higher stake in Lea Bank makes future cooperations more likely. After the
approval from the Swedish Financial Authority, Multitude Bank increased its
stake in Lea Bank to 20.9%, by executing another five share purchase
agreements. With that Multitude Bank strengthens its strategic foothold in
the Nordic consumer finance market and execute on its long-term growth
strategy through organic expansion, partnerships, and acquisitions. Further,
it increases synergy potentials, such as 1) referrals/product cooperations,
(2) joint development projects and (3) cross-selling between both banks.
Still, for now the acquisition is only a financial investment that is
expected to be partially consolidated. Importantly potential revenues from
Lea bank (via dividends/consolidation) are not reflected in the guidance.

Looking at current trading (not considering direct positive effects from Lea
Bank), we see Multitude fully on track to achieve its guidance: We expect
moderate yoy growth on both top and bottom line (eNuW for Q1Ž25: EUR 71m sales
and EUR 5.2m net income). That said, the Group's net income (including
contributions from Lea Bank) should come in clearly above the guidance for
FY25 of EUR 23m. Tailwinds are seen to come from lowering interest expenses
for customer deposits that should have peaked in Q3Ž24.

Given that the company is still trading at 4.8x PEŽ25, despite the strong
growth, the resilience and the positive outlook, we reiterate BUY with an
unchanged PT of EUR 12, based on our residual income model. Multitude remains
a NuWays Alpha pick.

You can download the research here: http://www.more-ir.de/d/31944.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

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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2098452 11.03.2025 CET/CEST

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