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Original-Research: Multitude SE - from NuWays AG

06.06.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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: 06.06.2025
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow

Guidance hike after impressive Q1 profitability; chg

Multitude recently reported Q1Ž25 figures with net profit clearly beating
expectations. Against this backdrop management increased its FY25 guidance.
In detail:

* Sales of EUR 64.4m (0% yoy) is below the anticipated EUR 71.1m, mainly
driven by ferratum that declined slightly to EUR 51.9m (-4% yoy vs eNuW:
57.9m). On the other hand CapitalBox and Wholesale banking show strong
yoy improvements with EUR 8.6m (11% yoy) and EUR 3.9m (69% yoy) fueled by
ongoing total NAR growth to EUR 787m (20% yoy; including c. EUR 665m loans
to customers and c. EUR 122m debt investments attributable to wholesale
banking).

* EBIT of EUR 18.8m (+61% yoy), is bang in line with expectations (eNuW: EUR
18.7m) due to 1) significantly improved impairments on loans that
declined to EUR 22.2m (-21% vs eNuW: EUR 25.6m), despite increasing NAR, 2)
EUR 2.4m share result from associated companies (vs EUR 0m in Q1Ž24),
stemming from the stakes in e.g. Lea Bank 3) stable OPEX following
improving efficiency and automation (e.g. personnel expenses of EUR 9.2m
vs eNuW: EUR 9.8m and S&M expenses of EUR 3.3m vs eNuW: EUR 3.9m). Interest
expenses increased with the growing loan book and the general interest
environment (delayed by c. 12 months, eNuW) to EUR 11m (27% yoy), but not
as strong as feared (eNuW: EUR 13m). As a result, net profit came in
strong at EUR 7.2m (209% yoy vs eNuW: EUR 5.2m).

Overall, Multitude reported a strong set of Q1 figures. While the cash cow
of the Group ferratum delivered stable sales, the growth trajectory in
CapitalBox and Wholesale banking is fully intact. Further, management
successfully solved the credit risk issues that weighed heavy on the P&L
during FY24. As a result, Multitude achieved the highest Q1 net profit in
the companyŽs history. Consequently, and thanks to good visibility into the
next quarters, management increased its FY25 net profit guidance from EUR 23m
to EUR 24-26m, which is absolutely reasonable (eNuW: EUR 27m).

Despite the positive share price performance of the last weeks, the company
still does not look expensive for a growing, highly profitable, dividend
paying company trading at only 4.2x P/EŽ25.

BUY with an unchanged PT of EUR 12 PT, based on our residual income model.
Mind you that Multitude is one of our NuWays Alpha picks.

You can download the research here: http://www.more-ir.de/d/32812.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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2151816 06.06.2025 CET/CEST

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