Original-Research: Mynaric AG (von GBC AG): Buy

Original-Research: Mynaric AG - von GBC AG

Einstufung von GBC AG zu Mynaric AG

Unternehmen: Mynaric AG
ISIN: DE000A0JCY11

Anlass der Studie: Research report (note)
Empfehlung: Buy
Kursziel: 108.50 EUR
Letzte Ratingänderung: 
Analyst: Marcel Goldmann, Cosmin Filker

The market for laser-based communication networks offers enormous growth
potential and is starting to gain momentum; Series production of ground
stations has started; Cooperation with CEA-Leti has enabled further
technological advances in the field of laser communications technology;
Target price: EUR108.50; Rating: Buy
 
Mynaric has specialised in the development, production and sale of laser
communications products for use in laser-supported communications networks
in the aerospace sector. This business segment is still a young, less
developed market; however, in our opinion, it is clearly beginning to pick
up speed. For this segment, we are expecting very dynamic market growth and
believe that over the long term, market volume in the double-digit billions
range will be possible.
 
In the past, Mynaric has mainly concentrated on the development of pre-
series products, so as to use them with potential customers for testing and
demonstration purposes. However, the main focus has changed to the
transition from product development to series production. In this context,
the company began series production of laser-based ground stations in
November 2018. The company intends to transition further product groups to
series production in the future.
 
As a result of technological cooperation with the renowned Leti CEA Tech
Research Institute entered into in 2018, Mynaric has access to technologies
that will enable further market-moving improvements to the company's laser
communications products. As a result, Mynaric's laser products are expected
to achieve significant performance improvements in the near future.
Additionally, the cost structure and range of applications are also
expected to improve.
 
In November 2018, Mynaric announced the opening of an office in Shanghai
(China) in order to take advantage of the booming Asian aerospace market.
This has enabled the company to further pursue its aim of
internationalisation and to establish itself as a global player.
 
In addition, Mynaric has continued to further expand its previous product
portfolio in the current financial year. After previously mainly focusing
on developments in the air sector, the company began to develop terminals
for the space sector in 2016. According to the company, the development of
the space laser terminal is proceeding according to plan and is intended
for completion at the beginning of 2019, so that the first devices can be
delivered in the same year for use on satellites.
 
The company also announced in June 2018 that it had started developing
laser terminals for use in precision agriculture. Specifically, it intends
to develop a new lightweight laser terminal for use in compact drones for
precision agriculture applications. In our opinion, this strategic step,
which follows the precision agriculture market trend, should open up
additional potential business. There is also further economic potential in
other sectors (drone industries) that also manufacture and market drones
(e.g. the security industry).
 
Mynaric also announced in November 2018 that it had received an order from
UK company ArQit to carry out a study to develop a global high-security
communications system. Laser communication is a core component of this
study in terms of guaranteeing the highest possible IT security (cyber-
security). After successfully completing the study, the company could
become the exclusive supplier of hardware for laser communications
solutions.
 
Overall, Mynaric has established a good base from which to profit
significantly from the expected dynamic growth in the laser-based
communications networks market. We have revised our short and medium-term
forecasts to take into account a slower pace of growth than initially
expected. However, our long-term forecasts remain valid. For the current
financial year 2018, we are now expecting total output of EUR9.20m and
EBITDA of -EUR4.25m. In the following year 2019, the previously mentioned
series production should result in a rapid growth in total output to
EUR22.60m. In parallel, operating earnings should improve significantly to
-EUR2.37m. For the subsequent financial years, we expect a strong rise in
operating results (EBITDA) based on an expected dynamic total output trend
and economies of scale. As a consequence of this, 2020 should significantly
exceed the operating profit threshold and double-digit EBITDA margins
should be achievable in the long-term.
 
It is on this basis that we have evaluated the technology company using our
DCF model and calculated a fair value of EUR108.50 per share (previously:
EUR95.00 per share). The increase in the target price is due to the 'roll-
over effect' (technical rise in target price, as the target price now
relates to the following financial year 2019 (previously: 2018)) and a
change in the risk-free interest rate. The revision of our short and
medium-term forecasts has prevented an even sharper rise in the target
price. Based on the current share price level, this once again results in a
BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/17475.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Datum (Zeitpunkt)Fertigstellung: 14.01.19 (09:51 Uhr)   
Datum (Zeitpunkt) erste Weitergabe: 14.01.19 (10:30 Uhr)

-------------------übermittelt durch die EQS Group AG.------------------- Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. 
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.