Original-Research: SYZYGY AG - von GBC AG
Einstufung von GBC AG zu SYZYGY AG
Unternehmen: SYZYGY AG
Anlass der Studie: Research Note
Kursziel: 10.20 EUR
Kursziel auf Sicht von: 31.12.2022
Analyst: Cosmin Filker; Marcel Goldmann
9 months 2021: Turnaround successful; revenue and earnings development 'in
line'; forecasts, estimates and target price confirmed
Based on the first nine months of 2021, Syzygy AG's sales revenues of EUR
44.66 million (previous year: EUR 40.69 million) were 9.8 % above the
previous year's level and thus in line with our expectations. Although the
gap in turnover caused by the Corona pandemic in the previous business year
could not yet be completely closed, a new nine-month record was achieved at
the EBIT level. In the previous business years, only the German companies
had made a positive contribution to the result. After completion of the
restructuring measures and the associated implementation of cost savings at
the foreign companies, a positive contribution to earnings was also
generated here for the first time in two years.
The fact that a new record was achieved with a Group EBIT of EUR 4.62
million (previous year: EUR 2.61 million) is also due to the cost savings
implemented in the context of the Corona pandemic. As a result, sales and
marketing costs as well as administrative costs, for example, are
significantly below the pre-Corona level. Although it can be assumed that
marketing costs will rise again in the future, Syzygy AG has a sustainably
leaner cost structure overall.
Syzygy's management has confirmed its guidance with the publication of the
nine-month report. The outlook remains unchanged for sales growth of around
10.0% and an EBIT margin of around 10.0%. Both geographic segments are
expected to contribute equally to this. In view of the figures achieved in
the first nine months of 2021, namely revenue growth of 9.8 % and an EBIT
margin of 10.3 %, the company guidance is a very realistic scenario.
The foreign companies are likely to show higher growth dynamics, also on a
full-year basis. In the last research study, we had already anticipated
that the growth momentum of sales generated abroad would flatten out
somewhat after an unusually strong performance in the first two quarters.
This has occurred as expected, but we continue to assume that the budget
increases from existing customers as well as the new customers acquired
provide a good basis for a sustainable increase in turnover.
Parallel to this, the more stable business in Germany should benefit from
an expansion of the business with existing clients as well as from the new
clients already acquired. Worth mentioning here is the expansion of the
mandate with Mazda Motors Germany, for which Syzygy is developing and
implementing the communication strategy. New clients such as the Erwin
Hymer Group, the Frankfurt Book Fair and Miles & More support the
assumption of expected sales growth. For Miles & More, Syzygy AG is
responsible for digital brand management, the further development of the
Miles & More platform and shop management. In addition, the company is
likely to benefit from the increasing digitisation needs of clients in the
area of business consultancy. With the combination of consulting and
technical implementation expertise, the company should be able to win new
customers in this area as well.
Based on the reported revenue and earnings development as well as the
confirmed corporate guidance, we also confirm our previous forecasts. For
2021, we continue to expect revenue growth of 10.0% and an EBIT margin of
10.3%. These are exactly the values that were already achieved after nine
months. For the coming financial years, we assume that the growth dynamic
will remain unchanged and, conservatively, we initially expect only slight
improvements in the EBIT margin. We have made slight forecast adjustments
at the level of the after-tax result. For 2021, we now assume a tax rate of
25.0% (previously: 28.3%), after no deferred taxes were recognised for the
foreign companies in 2020. For 2022 and 2023, however, we increase this to
30.0% (previously: 28.3%).
The changes in the tax rate and thus the slight change in the after-tax
forecasts have only a minor impact on the DCF model. Therefore, we confirm
our price target of EUR 10.20 and, at a current price of EUR 6.12, continue
to assign a BUY rating.
Die vollständige Analyse können Sie hier downloaden:
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Date (time) completion german version: 05.11.21 (1:54 pm)
Date (time) first transmission german version: 08.11.21 (9:30 am)
Date (time) completion english version: 09.11.21 (10:29 pm)
Date (time) first transmission english version: 09.11.21 (12:00 am)
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