Original-Research: CR Energy AG - from NuWays AG
Classification of NuWays AG to CR Energy AG
Company Name: CR Energy AG ISIN: DE000A2GS625
Reason for the research: Update Recommendation: Kaufen from: 08.04.2024 Target price: EUR 48.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Philipp Sennewald
FY ’23 displays strong cash generation and KPIs; chg.
CR Energy released preliminary FY figures, which came in below our estimates but displayed an improved operating strength of the holding companies.
FY EBIT came in at € 65m (eNuW: € 80m; eCons: € 73m), which compares to € 75m in FY ’22. The yoy decline can be mainly explained by lower valuation gains throughout the portfolio in connection with increased discount rates.
Yet, operating cash flow increased by 4% yoy to € 4.00/share or € 22.6m. This was predominantly due to the strongly improved operations of the holding companies, leading to an increased cash dividend of € 27m, implying a yoy growth rate of 62%. The equity ratio remained on a strong level of 97%.
Successful capital increase. In January, the company successfully completed the rights issuance, which was announced in November. 232,610 new shares were placed at a price of € 15 per share, resulting in gross proceeds of € 3.5m, which should maibly be used to strengthen the portfolio company CR Opportunities (CRO). CRO is seen to launch its first ELTIF in the course of H1 focusing on sustainable real estate and renewables, thus enhancing future growth.
Besides that, CR Energy remains a major beneficiary of the increasing demand for sustainable energy and housing solutions. Here, Terrabau and Solartec provide a compelling offering in relation to high quality and cost-optimized living space.
Terrabau, a general constructor offering concepts for innovative and sustainable construction, currently has >300 units in the Berlin and Leipzig area in the pipeline, which are seen to be in brisk demand considering the aging residential stock, especially in Eastern Germany. In order to optimize carbon intensity, Terrabau is acting in concert with Solartec, which is supplying the townhouses and single-family homes with rooftop solar rigs. In fact, Solartec is combining high-performance PV systems and emissionfree hydrogen storage systems to allow for a 24/7 supply of sustainable energy.
Overall, the company remains well positioned in the market for sustainable housing and is offering unique synergies to capitalize on compelling growth prospects of the market. Hence, the stock remains a BUY with a new PT of € 48 (old: € 52) based on DDM.
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