Original-Research: UmweltBank AG (von GBC AG): BUY
Source: EQSClassification of
Company
ISIN: DE0005570808
Reason for the research: Research Note
Recommendation: BUY
Target price:
Target price on sight of:
Last rating change:
Analyst:
Transformation year 2023 in line with expectations; further investments in
digitalisation and customer growth expected; return to profitability after
another transformation year 2024; price target: € 9.60; rating: BUY
The main reason for the decline in net interest result, which we had
anticipated in our previous forecasts, but had assumed a smaller decline,
was once again likely the increase in interest expenses. The general rise
in interest rates has led to greater adjustments to the conditions for
customer deposits. These react more strongly to interest rate adjustments
due to the lower duration. In addition, the increase in interest expenses
is due to changes in the conditions for TLTRO funds, i.e. the low-interest
refinancing funds provided by the
The declining earnings trend described above is offset by a significant
increase in personnel and administrative expenses. Personnel expenses rose
visibly by almost 30% to € 25.62 million (previous year: € 19.88 million).
The main drivers of this development were new hires in areas relevant to
regulatory requirements and the general rise in salary levels. As at the
balance sheet date of
The preliminary earnings before taxes of € 1.12 million (previous year: €
39.21 million) resulting from the development described above are in line
with the company's guidance published in
At the beginning of
Our earnings and profit estimates are based on the company's guidance,
which was adjusted in
In contrast, investments in digital processes and the expansion of customer
deposits are likely to lead to significant cost increases, which we
estimate will result in a negative EBT of € -15.90 million. We anticipate a
return to profitability for the two subsequent estimation periods. Both the
increase in total revenue that we expect and - following the completion of
their digital transformation - the anticipated decline in total costs
should contribute to this.
For the valuation of
The sharp reduction in the fair value is primarily due to the lower
forecasts for the 2024 and 2025 financial years, which also form a low
basis for our initial forecasts for the 2026 financial year. In addition,
the increase in the WACC to 5.35% (previously: 4.97%) resulting from the
increase in the risk-free interest rate also has a price-target-reducing
effect. Following the sharp fall in the
You can download the research here:
http://www.more-ir.de/d/29257.pdf
Contact for questions
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (1,4,5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
https://www.gbc-ag.de/de/Offenlegung
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Date (time) completion of the study:
-------------------transmitted by EQS Group AG.-------------------
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.