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Original-Research: Cenit AG - from GBC AG

06.08.2025 / 12:00 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
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of GBC AG to Cenit AG

Company Name: Cenit AG
ISIN: DE0005407100

Reason for the research: Research Comment
Recommendation: BUY
Target price: 16.00 EUR
Target price on sight of: 31.12.2026
Last rating change:
Analyst: Cosmin Filker, Marcel Goldmann

Analysis Prime weighs on revenue and earnings; forecast and price target
lowered, BUY rating confirmed

Although CENIT AG increased its revenue by 4.4% to EUR103.71 million in the
first half of 2025 (previous year: EUR93.36 million), this performance fell
significantly short of our expectations and those of CENIT's management. The
increase in revenue was exclusively attributable to the revenues of the US
company Analysis Prime, which was acquired in July 2024 and was included in
the figures for the first half of the year for the first time. According to
our calculations, these revenues are likely to have amounted to slightly
more than EUR6 million. According to former estimates, Analysis Prime should
generate sales of around EUR25 million in the 2025 financial year. However, in
view of the sales achieved in the first half of the year, this forecast is
clearly too optimistic. Restructuring measures are currently underway at
this subsidiary, particularly at management level. At the same time, the
continuing difficult market environment in Europe is making itself felt. The
German automotive industry, in particular, which is an important customer
sector for the company, is affected by a decline in business volume, with
the result that CENIT AG had to accept an organic decline in revenue of
around 2%.

Despite the increase in revenue, EBIT deteriorated to EUR-3.69 million
(previous year: EUR2.01 million). In the first half of 2025, special expenses
of around EUR3.8 million were incurred in connection with the implementation
of the 'Project Performance' restructuring programme. This programme aims to
reduce the number of employees by around 50. Although this has resulted in
cost improvements, significant positive effects are not expected to become
apparent until the coming financial year. In addition to the special
expenses, Analysis Prime reported a negative EBIT of EUR1.6 million in the
first half of 2025, which also had a negative impact on the Group's results.

Despite the negative operating result, operating cash flow was once again
clearly positive at EUR9.99 million (previous year: EUR11.15 million). Advance
payments received contributed significantly to this, meaning that CENIT AG
remains in a very comfortable position with cash and cash equivalents of
EUR20.59 million as of 30 June 2025.

Due to the below-expectations performance of Analysis Prime and the
continuing difficult market situation, CENIT's management has significantly
adjusted its forecast. Revenue of at least EUR205 million and EBIT of at least
EUR-1.5 million are now expected. Previously, revenue of EUR229 million to EUR234
million and EBIT of EUR6.8 million to EUR7.3 million had been expected. The main
reason for this reduction in the forecast is Analysis Prime, for which sales
of around EUR15 million are currently planned, a significant adjustment
compared to the previous expectation of around EUR25 million. In addition, the
weak market situation in Europe is causing customers to remain cautious.

We are guided by the new forecast and expect revenue of EUR208.95 million and
EBIT of EUR-0.28 million. For the second half of 2025, this means a return to
positive EBIT. This is primarily a result of the virtual elimination of
special expenses, which amounted to EUR3.8 million in the first half of the
year. The elimination of these expenses in the coming financial year and the
resulting positive effects of approximately EUR5 million should have a
significant positive impact on EBIT in the coming financial year. Due to the
now lower revenue base, we have reduced our revenue forecasts for 2026 to
EUR221.35 million (previously: EUR242.22 million). However, we expect a
noticeable improvement in EBIT to EUR11.21 million (previously: EUR13.40
million). The same applies to the 2027 financial year.

Based on the adjusted DCF valuation model, we have determined a new target
price of EUR16.00 (previously: EUR19.00). The reduction in the target price is a
consequence of our lower forecasts. We are maintaining our 'BUY' rating.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=368ec2c477bd772e575c28d78204faff

Contact for questions:
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Disclosure of potential conflicts of interest pursuant to Section 85 WpHG
and Art. 20 MAR The company analysed above has the following potential
conflict of interest: (5a,6a,7,11); A catalogue of potential conflicts of
interest can be found at:

https://www.gbc-ag.de/de/Offenlegung.htm
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Date and time of completion of the study: 06/08/25 (10:19 am)
Date and time of the first dissemination of the study: 06/08/25 (12:00 pm)

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2180258 06.08.2025 CET/CEST

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