Original-Research: LION E-Mobility AG - from NuWays AG Classification of NuWays AG to LION E-Mobility AG Company Name: LION E-Mobility AG ISIN: CH0560888270 Reason for the research: Update Recommendation: BUY from: 09.07.2024 Target price: EUR 7.00 Last rating change: Analyst: Christian Sandherr Successful AMG / / Surprisingly strong JV performance Topic: During the last weeks, LION published its FY23 annual report and hosted its AGM.
09.07.2024 - 09:02:30Original-Research: LION E-Mobility AG (von NuWays AG): BUY
Original-Research: LION E-Mobility AG - from NuWays AG Classification of NuWays AG to LION E-Mobility AG Company Name: LION E-Mobility AG ISIN: CH0560888270 Reason for the research: Update Recommendation: BUY from: 09.07.2024 Target price: EUR 7.00 Last rating change: Analyst: Christian Sandherr Successful AMG // Surprisingly strong JV performance Topic: During the last weeks, LION published its FY23 annual report and hosted its AGM. Here are the key takeaways: FY23 marked a milestone as the company transformed itself into an automated manufacturer of high-quality battery packs for mobility and storage solutions through the acquisition of the former BMW i3 battery pack production lines. The current set-up offers a production capacity of up to 40k battery packs p.a. with a revenue potential of some EUR 200m by 2028. Despite the transformation, which was completed by the end of May 2023, LION's EBITDA came in break-even with roughly EUR 56m sales (~50% from pre-produced packs); op. cash flow stood at EUR 2.8m. Worth highlighting, TV SD Battery Testing (LION holds a 30% in this JV) reported particularly strong FY23 results with sales up 41% yoy (EUR 16.1m) and an 18.9% EBIT margin; EUR 660k P&L contribution to LION. Thanks to a structurally growing demand for battery testing capacities, TV SD Battery Testing looks set to continue growing at roughly 15% p.a. during the mid-term. FY24 financial targets confirmed. Management expects FY24 sales to the tune of EUR 60-65 and EUR 0.5-1m EBITDA. Importantly, the current fix cost base should only slightly increase going forward (mainly due to ramping sales efforts, i.e. growing sales headcount and trade shows), providing plenty of room for operating leverage as sales increase. Further, LION remains on track to launch an updated product portfolio during H2, featuring a higher energy density NMC pack as well as a LFP solution (both enabled by the SVOLT partnership). Especially the latter should enable LION to better benefit from the strongly growing stationary storage market. Light battery remains an attractive option. With its immersion cooled pack, LION would add a highperformance pack, to be used in hyper cars. The project is developing as planned and LION expects a first request for quotations until the end of the year. A positive outcome would notably increase the likelihood of it becoming a notably sales driver during the mid-term (currently not part of our revenue model). We confirm our BUY rating with an unchanged EUR 7 PT based on a sum-of-the-parts valuation, whereas EUR 6.50 are stemming from the battery pack manufacturing business and EUR 0.50 from the TV SD JV. You can download the research here: http://www.more-ir.de/d/30165.pdf For additional information visit our website www.nuways-ag.com/research. 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. ++++++++++ -------------------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.
