Original-Research: Rubean AG - from NuWays AG Classification of NuWays AG to Rubean AG Company Name: Rubean AG ISIN: DE0005120802 Reason for the research: Update Recommendation: Kaufen from: 05.06.2024 Target price: EUR 9.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow Capital increase to secure growth financing; chg.
05.06.2024 - 09:01:33Original-Research: Rubean AG (von NuWays AG): Kaufen
Original-Research: Rubean AG - from NuWays AG Classification of NuWays AG to Rubean AG Company Name: Rubean AG ISIN: DE0005120802 Reason for the research: Update Recommendation: Kaufen from: 05.06.2024 Target price: EUR 9.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow Capital increase to secure growth financing; chg. Topic: Rubean successfully placed a 10% capital increase. Further, it agreed with Cyclcebit to convert the outstanding convertible bond into a regular bond that is now due in three tranches. Both initiatives should ease the liquidity situation. In detail: Capital increase secures growth ambitions. By using the existing authorized capital, all 327,626 shares were placed at an average share price of EUR 6.06 per share, increasing Rubean's share capital from EUR 3.276m to EUR 3.604m. The proceeds from the capital increase amounts to EUR ~2m and should be i.e. used to finance the ramp-up of closed and upcoming partnerships that should fuel the company's topline, ones up and running. Agreement with cyclebit relaxes liquidity situation. Rubean and Cyclebit reached an agreement on the modalities of the expiring convertible loan of EUR 3.4m from 2022. Cyclebit waives the option to convert the loan into shares and agreed on the repayment in three stages together with interest. We expect the repayment of the first tranche (eNuW: 1/3 of the total amount) including interest within the next weeks and the next tranches not before FY25. This should ease the liquidity situation and let room to finance the growth of the company. Product roll-out in full swing. Rubean has signed a whole series of important strategic partnerships within a short period of time (i.e. SEUR, Global Payments, Correos, emerchantpay), all that indicate that RubeanŽs leading softPOS product is ready and that the roll-out is in full swing. Consequently, management expects for FY24 to grow sales by 135% at mid-point to EUR 2.2-2.5m. On the back of the recently announced cooperations (i.e. with Global Payment), paired with further likely customer wins, we consider this guidance as achievable, anticipating sequential improvements and EUR 3.0m sales (eNuW). As we see Rubean at the forefront of the rapidly growing market for mobile payment acceptance systems, we expect Rubean to achieve profitability by FY25 and and consider managements mid-term vision of EUR 10+m in sales and 40+% EBIT-margin by FY27 as reasonable. However, in light of the expected steep growth trajectory resulting from partnerships starting to materialize, delays in execution could have a huge impact on estimates. BUY with an unchanged PT of EUR 9.00, based on our DCF. You can download the research here: http://www.more-ir.de/d/29979.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.
