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

12.05.2021 um 10:02 Uhr

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Original-Research: SYZYGY AG - von GBC AG

Einstufung von GBC AG zu SYZYGY AG

Unternehmen: SYZYGY AG
ISIN: DE0005104806

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 9.60 EUR
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann

Visible revenue growth of foreign subsidiaries; German SYZYGY companies
with positive trend; new record Q1 EBIT achieved; forecasts and price
target of EUR9.60 confirmed; Rating: BUY

In the first quarter of 2021, SYZYGY AG generated moderate revenue growth
of 0.9% with total revenue of EUR15.06 million (previous year: EUR14.93
million). Although the company still has a low growth dynamic, there is a
clear trend reversal after the previous periods were characterised by
declining turnover. This trend reversal is particularly a result of the
strong growth in revenues of their international subsidiaries. In Great
Britain and the USA, an increase in turnover of 34.4% was achieved by
expanding business with existing customers, which can be seen as a clear
sign of a sustainable trend reversal. This contrasts with a slight decline
in domestic sales of -2.9%. After SYZYGY AG's being characterised by strong
revenue declines in Germany from the second quarter of 2020 onwards, a
catch-up trend is visible here. In the last three quarters of 2020, the
average decline in revenue was -8.5% and, thus, a weakening of this trend
can be seen in the first quarter of 2021.

The slight increase in turnover of 0.9 % contrasts with a significant
improvement in EBIT of 42.8 % to EUR 1.57 million (previous year: EUR 1.10
million), so that the EBIT margin rose significantly to 10.4 % (previous
year: 7.4 %). In a Q1 comparison, the EBIT level reached marks a new
record.

With the publication of the Q1 figures for 2021, SYZYGY management has
confirmed the guidance published in their 2020 annual report. Thus, for the
current financial year 2021, an increase in revenue of around 10% and an
EBIT margin in the high single-digit percentage range are still expected.
The Q1 figures provide a good basis for both the revenue guidance and the
achievement of the EBIT forecast. Even though only a moderate increase in
turnover was achieved, it is important to bear in mind that in the previous
year, the second and third quarters in particular were affected by the
restrictions in connection with the corona pandemic, so that a significant
increase in turnover can be expected in these quarters.

The company can currently see that the pandemic-related restraint seems to
have been overcome and is observing an increase in customer enquiries. In
addition, the turnaround achieved by the international companies should
continue on the basis of budget increases with existing clients as well as
an increase in new client business. As was observed in the first quarter,
the turnover dynamics of the German companies should be lower against this
background, but this is also due to the base effect of the higher revenue
level.

In terms of earnings, SYZYGY AG has already exceeded its target for the
full year 2021. For the remainder of the year, the forecast increases in
sales and the fact that marketing and sales costs are expected to remain
low (no more face-to-face events) should contribute to the disproportionate
EBIT development.

We confirm our forecasts for the current financial year and continue to
expect an increase in revenue of 10 % to EUR 61.07 million in 2021. We
maintain this dynamic in our forecasts for the coming financial years. Our
EBIT forecast of EUR 6.09 million, which is also unchanged, corresponds to
an expected EBIT margin of 10.0 % and should be easily achievable in view
of the Q1 value. We also assume further improvements in profitability for
the following years.

As our estimates remain unchanged, we confirm our price target of EUR 9.60
per share. At the current share price of EUR 6.10 we continue to give the
rating BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/22442.pdf

Kontakt für Rückfragen
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,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date (time) completion german version: 06.05.21 (3:08 pm)
Date (time) first transmission german version: 07.05.21 (09:30 am)

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

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