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

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Original-Research: MLP SE - from NuWays AG

07.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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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: 07.05.2025

Target price: EUR 13.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Q1 preview: Improving RE to drive a solid start into 2025

Topic: MLP will publish Q1 results on 15th May, which should show a solid

start into the year. In detail:

Total sales are seen to grow by 8% yoy to EUR 307m, which should be driven by

an expected rebound in real estate (sales from RE Brokerage: EUR 14m, up 358%

yoy) and accompanied by a sales growth from Loans and Mortgages.

Furthermore, we expect Non-Life Insurance brokerage to pick up momentum

again and grow by 8% yoy to EUR 105m sales, based on the strong growth of

MLP's insurance portfolio volume (FY'24: EUR 751m, % yoy). On the other

hand, sales from Wealth Management should show less momentum (eNuW: EUR 90m

sales, % yoy), weakened by the volatile capital market dynamics visible in

Q1 but supported by a higher AuM base of EUR 62.5bn (eNuW; % yoy; -1% qoq).

Unsurprisingly, we expect Interest Income to decline by 9% yoy to EUR 20m

sales, due to recent ECB rate cuts, however still at comfortable levels.

EBIT is expected to grow by 13% yoy to EUR 42m (13.6% margin, up 0.6pp yoy),

mainly due to the slight change in revenue and thus cost mix. First,

Deutschland.Immobilien (with a negative EUR 4.2m EBIT in Q1'24), is now

expected break even (eNuW: EUR 0m EBIT), as MLP should have reduced RE

development

significantly and incurred less sales and also much lower development costs.

Secondly, the lower interest rate environment should have a slight effect on

MLP Banking AG's still solid EBIT margin (eNuW: 23.2%, down 2.2pp yoy). Here

MLP has also reduced the interest rate paid to customer on overnight (1% p.a

vs. prev.1.5%) and time deposits (1.75% p.a. vs. prev. 2.75%), which should

protect the net interest margin. Thirdly, FERI should report only minor

performance fees of EUR 1m (eNuW; vs. EUR 3.8m in Q1'24) which should have also

left a mark on profitability, with an expected EBIT margin of 11.1% (down

1.8pp yoy). However, by excluding the performance fees, underlying

profitability (EBIT margin ex performance fees) at FERI should have risen by

0.9pp yoy to 10.2%, thanks to a higher AuM base and thus economies of scale

and operating leverage. Finally, Industrial Brokerage should report a 7%

higher EBIT of EUR 10m (55.6% margin, .2pp yoy), on the back of better cross

selling within the MLP group.

MLP's diversified business model should once again prove, that MLP is able

to show stable growth and sound margins. Therefore, we reiterate our BUY

recommendation and confirm MLP's position in our NuWays Alpha List with an

unchanged PT of EUR 13.00, based on SOTP and FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32484.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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

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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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2131570 07.05.2025 CET/CEST

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