Original-Research: SYGNIS AG (von GBC AG): BUY

Original-Research: SYGNIS AG - von GBC AG

Einstufung von GBC AG zu SYGNIS AG

Unternehmen: SYGNIS AG
ISIN: DE000A1RFM03

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 3.30 EUR
Kursziel auf Sicht von: End FY 2019
Letzte Ratingänderung: 
Analyst: Cosmin Filker, Marcel Goldmann

Strong sales growth and EBITDA break-even achieved in the last quarters,
continued dynamic (inorganic organic) growth expected, SYGNIS serves high-
growth future markets
 
In the past reporting periods, SYGNIS AG has achieved substantial progress.
The finally completed integration of the companies acquired in 2016 and
2017, Expedeon Ltd., C.B.S. Scientific and Innova Biosciences, is
particularly worthy of mention, as a result of which a significant
expansion of the product range was achieved, as well as a related
development of the distribution channels. During the course of product
expansion, SYGNIS AG, which originally specialised in the areas of DNA/RNA
sample enrichment and analysis, has succeeded in covering both of the
important sub-areas of Life Sciences (genomics and proteomics), as well as
supplementing the product range with the protein marking field. In
addition, the Company also covers the area of immunodiagnostics and should
be able to address the high-volume areas of laboratory diagnostics (point
of care) and clinical diagnostics (hospital).
 
Due to the inorganic and organic (introduction of new products, new OEM
deals etc.) growth, sales revenues climbed substantially in the FY 2017 to
EUR7.80 million (PY: EUR1.79 million), which meant that the company
fulfilled its own guidance (EUR7 - 8 million). The high sales dynamics also
continued in the first quarter of 2018, with sales growth to EUR2.31
million (Q1 2017: EUR1.37 million), so that a sustainable increase in the
sales level is evident from this.
 
The circumstance due to which SYGNIS AG achieved a positive EBITDA for the
first time of EUR0.05 million in the fourth quarter of 2017 and in the
following first quarter of 2018 is particularly worthy of mention. With the
publication of the annual report for the 2016 financial year, the SYGNIS
management held out the prospect of exactly this scenario of a first-time
break-even in the fourth quarter of 2017. However, on a full-year basis for
2017, the EBITDA continued to be in the negative range, at EUR-2.46 million
(PY: EUR-3.21 million).
 
According to the company, with sales revenues in the amount of EUR13 - 14
million, in the current financial year 2018, the EBITDA break-even should
also be achieved on a full-year basis. In the company guidance, TGR
Biosciences, which was acquired in the second quarter of 2018, is also
included for the first time. The newly acquired company also has
considerable overlaps with the SYGNIS product world, with its protein
capturing products, and therefore goes hand-in-hand with high synergy
potential. TGR Biosciences reports annual sales revenues of EUR3.6 million
and operates clearly in break-even, with an EBITDA of EUR1.4 million. In
2018, TGR will be included in the SYGNIS Group for a total of eight months.
 
Analogously to the company forecast, we anticipate dynamic sales
development as well as sustainable achievement of break-even on an EBITDA
basis from the current financial year 2018. In addition to the broader
sales basis, the reduction of operating costs following the completed
integration of the acquired new companies is noteworthy. Based on this, the
substantially higher sales level, which we expect, should also lead to a
rising level of earnings.
 
Within the scope of our adapted DCF valuation model, we have calculated a
fair enterprise value in the amount of EUR171.30 million (previously:
EUR153.14 million). Broken down over the greater number of shares following
the capital increase carried out for the TGR acquisition, this results in a
unchanged target price of EUR3.30 (previously: EUR3.30). Based on the
current share price of EUR1.42, we are maintaining our BUY rating. 

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/16599.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,6a,7,10,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: 
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++

-------------------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.