Original-Research: Multitude SE (von NuWays AG): BUY

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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
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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 Q1´25 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 Q1´24),
    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 company´s 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/E´25.

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
++++++++++
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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