Original-Research: Rubean AG - from NuWays AG

Classification of NuWays AG to Rubean AG

Company Name: Rubean AG

ISIN: DE0005120802

Reason for the research: Update

Recommendation: Kaufen

from: 05.06.2024

Target price: EUR 9.00

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Frederik Jarchow

Capital increase to secure growth financing; chg.

Topic: Rubean successfully placed a 10% capital increase. Further, it

agreed with Cyclcebit to convert the outstanding convertible bond into a

regular bond that is now due in three tranches. Both initiatives should

ease the liquidity situation. In detail:

Capital increase secures growth ambitions. By using the existing authorized

capital, all 327,626 shares were placed at an average share price of EUR 6.06

per share, increasing Rubean's share capital from EUR 3.276m to EUR 3.604m. The

proceeds from the capital increase amounts to EUR ~2m and should be i.e. used

to finance the ramp-up of closed and upcoming partnerships that should fuel

the company's topline, ones up and running.

Agreement with cyclebit relaxes liquidity situation. Rubean and Cyclebit

reached an agreement on the modalities of the expiring convertible loan of

EUR 3.4m from 2022. Cyclebit waives the option to convert the loan into

shares and agreed on the repayment in three stages together with interest.

We expect the repayment of the first tranche (eNuW: 1/3 of the total

amount) including interest within the next weeks and the next tranches not

before FY25. This should ease the liquidity situation and let room to

finance the growth of the company.

Product roll-out in full swing. Rubean has signed a whole series of

important strategic partnerships within a short period of time (i.e. SEUR,

Global Payments, Correos, emerchantpay), all that indicate that RubeanŽs

leading softPOS product is ready and that the roll-out is in full swing.

Consequently, management expects for FY24 to grow sales by 135% at

mid-point to EUR 2.2-2.5m. On the back of the recently announced cooperations

(i.e. with Global Payment), paired with further likely customer wins, we

consider this guidance as achievable, anticipating sequential improvements

and EUR 3.0m sales (eNuW).

As we see Rubean at the forefront of the rapidly growing market for mobile

payment acceptance systems, we expect Rubean to achieve profitability by

FY25 and and consider managements mid-term vision of EUR 10+m in sales and

40+% EBIT-margin by FY27 as reasonable. However, in light of the expected

steep growth trajectory resulting from partnerships starting to

materialize, delays in execution could have a huge impact on estimates.

BUY with an unchanged PT of EUR 9.00, based on our DCF.

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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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