Original-Research: M1 Kliniken AG - von GBC AG

Einstufung von GBC AG zu M1 Kliniken AG

Unternehmen: M1 Kliniken AG

ISIN: DE000A0STSQ8

Anlass der Studie: Research Report (Anno)

Empfehlung: BUY

Kursziel: 21.80 Euro

Kursziel auf Sicht von: 31.12.2021

Letzte Ratingänderung:

Analyst: Cosmin Filker, Marcel Goldmann

- With the integration of HAEMATO AG the trading and product business will

be expanded

- Greater concentration on the beauty segment planned

- Sales and earnings growth expected from 2021 onwards

On June 10, 2020, M1 Kliniken AG announced the acquisition of all HAEMATO

shares previously held by MPH Health Care AG and thus becomes the new major

shareholder of HAEMATO AG as of July 1, 2020. Through the HAEMATO

acquisition, M1 Kliniken AG, which currently has a strong focus on the

beauty treatment segment, is expected to return to its accustomed dynamism

in the product and trade area in the future. On the one hand, the well-

established HAEMATO trade channels can be used here. On the other hand

HAEMATO AG has a high product development competence and the necessary

certifications, so that for example the product area M1 Select could

benefit from this. HEAMATO AG also has extensive know-how in the area of

product manufacturing, so that in the future cost saving potentials can be

raised. On the other hand, a possible outsourcing of the trade and product

business to HAEMATO AG will allow a more focused expansion of the beauty

area within the M1 Kliniken AG. The acquisition of the 11.01 million

HAEMATO shares was paid for by issuing 2.14 million M1 shares as part of a

capital increase through contributions in kind.

This transaction will result in a significantly changed sales and earnings

picture for M1 Kliniken AG. Since there is a de facto controlling majority,

HAEMATO AG will be fully consolidated into the M1 Group in the future,

which will lead to a significant in-crease in sales revenues and a visible

increase in earnings. The mixture of the comparatively high profit margins

of the treatment segment with the lower trading margins of HAEMATO AG will

lead to a decrease in the profit margin overall, but the absolute EBIT will

reach a higher level.

In our still separate analysis, M1 Kliniken AG will continue on its growth

course. However, due to the corona crisis, the company had to temporarily

close all locations between 23.03.20 and 11.05.20. Even though high

occupancy rates and high booking rates were recorded within a short period

of time after the reopening, only constant revenue development or only

slight revenue growth is therefore expected for the current fiscal year.

While a growth in turnover of around 20 % was previously expected, the

closures of locations are likely to have led to a loss of turnover of

around 16 %. As a result of the corona crisis, the company should,

according to our forecasts, have a total of 43 locations by the end of the

2020 financial year. Up to that point, we had expected 50 locations.

Similarly, we assume that the medium-term plan to operate 100 locations by

the end of 2023 will not be achieved until the end of 2023/2024, which

nevertheless corresponds to dynamic growth.

HAMEATO AG, which will be newly integrated as of 01.07.2020, will profit as

a trading company from an increasing demand for pharmaceuticals in Germany

as well as from increased cost-saving efforts on the part of the cost

bearers. After the past financial year 2019 was characterized by various

burdening factors, the HAEMATO management expects for 2020 a return to

sales growth. As the company supplies pharmacies with drugs, particularly

in the indication areas of oncology, cardiovascular diseases, neurological

diseases and HIV/AIDS, the impact of the Covid 19 pandemic is expected to

be minimal. Ongoing medication is necessary in the addressed indication

areas. In addition, management does not currently see any significant

impact on supply chains.

On the basis of our estimates for both companies, we expect sales revenues

of EUR 187.04 million for the current fiscal year. This includes the

HAEMATO sales for a 6-month period. Due to the full-year inclusion in the

coming business year 2021, there should be a significant increase in sales

revenues to EUR 342.82 million and in 2022 to EUR 392.74 million. In

combination, this results in a lower EBIT margin of 4.4% in 2020. Since the

lower-margin HAEMATO sales revenues are included for the full year in 2021,

the margin is expected to initially decline to 3.8% (EBIT: EUR 13.14

million). In 2022 we expect an improvement in profitability to 4.6 % and

thus expect an EBIT of EUR 18.22 million. On the level of the after-tax

result we have considered 52 % of the HAEMATO result as minority interests.

These are only allocated to the HAEMATO shareholders and not to M1 Kliniken

AG.

As part of the updated DCF valuation model, we have determined a new price

target of EUR 21.80 (previously: EUR 21.30). On the one hand, we have

reduced the forecasts for 2020 at M1 Kliniken AG and expect a lower growth

rate for the following years. The higher fair value due to the inclusion of

HAEMATO AG was also partially diluted by the higher number of shares in the

context of the capital increase through contributions in kind. We continue

to assign the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/21119.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: (5a,5b,11); Einen Katalog mölicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

Date and time of completion (german version): 19/06/2020 (10:20 am)

Date and time of first distribution (german version): 22/06/2020 (12:00 am)

Date and time of completion (english version): 22/06/2020 (11:00 am)

Date and time of first distribution (english version): 22/06/2020 (12:00 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.