Original-Research: MLP SE - from NuWays AG 15.08.2024 / 09:02 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.

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

Original-Research: MLP SE - from NuWays AG

15.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of 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.

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Classification of NuWays AG to MLP SE

     Company Name:               MLP SE
     ISIN:                       DE0006569908

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       15.08.2024
     Target price:               EUR 11.50
     Last rating change:
     Analyst:                    Henry Wendisch

Solid Q2 driven by wealth management and banking

Topic: Following preliminary EBIT results from 29th July (see update from
30th July), MLP provided more details with final Q2 results yesterday.
Here's what's new:

  * Solid sales figures: Total revenues grew by 8.5% yoy to EUR 230m (H1: EUR
    514m, +8% yoy), especially driven by market tailwinds in Wealth
    Mangement (+18% yoy; 39% of sales), Interest Income (+48% yoy; 10% of
    sales) and Real Estate Brokerage (+128% yoy; 4% of sales), which have
    offset the decline in Non-Life Insurance (-7% yoy; 15% of sales), while
    Old-Age Provision (+1% yoy; 22% of sales) and Health Insurance (+5% yoy;
    6% of sales) have remained stable.

  * Non-life Insurance and Old-Age Provision temporarily muted: Albeit
    demand for occupational pension schemes at MLP's institutional clients
    has temporarily decreased due to investment restraints at SMEs,
    management expects a rebound in the next quarters. The current weakness
    in Non-Life Insurance stemmed from a discontinuation of lowmargin
    contracts, which temporarily burdens the top-line but should ultimately
    benefit the bottom-line going forward.

  * EBIT mix driven by banking, brokerage and wealth management: H1's EBIT
    showed a substantial improvement over H1'23 (+30% yoy to EUR 48.7m). Here,
    the main expansion drivers were similar to sales with banking (+30%
    yoy), brokerage (+229% yoy) and wealth management (+47% yoy). Especially
    the net interest income of EUR 28m (+26% yoy) in banking as well as
    performance fees of EUR 9.2m (+362% yoy) in wealth management conbtributed
    significantly to profitability and made up c. 76% of H1 EBIT. On the
    other hand, in RE development (i.e. Deutschland.Immobilien) H1 EBIT
    worsened to EUR -9m (vs. EUR 3m in H1'23) due to the near fullstop of
    projects.-

  * Real estate rebound ahead: While RE brokerage already saw a strong jump
    from low levels (Q2 sales +128% yoy and 176% qoq), RE development should
    have reached its low now and follow brokerage going foward. Here
    management expects a steady rise in sales in the next quarters, which
    should lead to a less negative EBIT in H2'24e and even a positive EBIT
    in FY'25e.

  * Improved KPIs on all fronts: Next to record sales and EBIT figures, MLP
    posted record AuMs of EUR 60.5bn (+7% yoy), a record non-life insurance
    volume of EUR 729m (+7% yoy) and a strong net liquidity of EUR 220m (vs. EUR
    191m per Y/E'23), the latter explaining 35% of its market cap. -


All in all a solid release, showing that MLP is on track to outperform its
guidance. By simply assuming last year's H2 EBIT (EUR 37.2m excl. one-offs)
for H2'24e, FY'24e EBIT would stand at EUR 86m, already above the specified
guidance of EUR 80-85m. Furthermore, we expect EBIT to come in at EUR 90m, based
on (1) a still strong net interest income, (2) higher AuMs and (3) less
negative impacts from RE development expected for H2.

In our view, MLP shares remain highly attractive, trading at 16% adj. FCF
yield, a 5.6% dividend yield and only on 5.3x EV/EBIT for FY'24e, while also
being a well diversified and stable quality business. Therefore, we
reiterate our BUY recommendation and MLP's position in our NuWays' AlphaList
with an unchanged PT of EUR 11.50, based on FCFY'24e and SOTP

You can download the research here: http://www.more-ir.de/d/30493.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: [e-mail]
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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1968439 15.08.2024 CET/CEST