Original-Research

LION E-Mobility AG (von NuWays AG): Buy

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Original-Research: LION E-Mobility AG - from NuWays AG

Classification of NuWays AG to LION E-Mobility AG

Company Name: LION E-Mobility AG
ISIN: CH0560888270

Reason for the research: Update
Recommendation: Buy
from: 04.03.2024
Target price: 10.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr

Large order from electric bus manufacturer

Topic: LION E-Mobility received a EUR 12m order for battery packs from electric bus manufacturer KARSAN. Its ambitious growth prospects and recent order momentum should leave room for additional battery pack orders in the short-term.

In detail, the EUR 12m battery pack order comprises EUR 6m in firm orders to be delivered in FY24 as well as a EUR 6m floating component to accommodate the evolving needs of KARSAN and the rapidly expanding market for electric buses. LION expects the floating component of the order to also be delivered in FY24.

KARSAN is a Turkish manufacturer of electric buses used for public transportation that is mainly active in Europe (e.g. ~40% market share in Luxemburg and Romania and 19% in France) but is also expanding its business in North America and that is in the midst of entering Japan. According to its FY24 targets, KARSAN plans to more than double its vehicle output to 1.2-1.3k vehicles compared to FY23. As the company does not have its own battery pack production, it heavily relies on partners such as LION. We hence expect further follow-up orders during the foreseeable future.
Newsflow to remain positive. LION is expected to release preliminary FY23 figures on March 21st. As already highlighted during the Q3 earnings call in December, the company is seen to report EUR 25m sales in Q4 alone - a significant sequential step-up (vs. 9M of EUR 29m). Throughout FY24, LION should, report further larger order wins in its Mobility and Storage segments (eNuW). The latter is seen to experience significant tailwinds from the planned launch of a LFP-based battery pack during the second half of the year.

After all, valuation remains very attractive. While 2023 should be seen as transition year, FY24e looks set to be marked by (1) strong sales growth (eNuW: 44% yoy) thanks to a running production and an increased sales force, (2) LION turning at least EBITDA breakeven thanks to operating leverage, (3) the launch of LFP battery packs and (4) further progress on the LIGHT battery. Still, shares trade at a mere 0.5x EV/sales 2024e.
We hence reiterate BUY with an unchanged EUR 10.50 PT based on DCF.

You can download the research here:
http://www.more-ir.de/d/29045.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden www.nuways-ag.com/research.
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: [e-mail]
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. ++++++++++

transmitted by EQS Group AG.

The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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Die LION E-Mobility Aktie wird zum Zeitpunkt der Veröffentlichung der Nachricht mit einem Plus von +2,56 % und einem Kurs von 2,00EUR auf Tradegate (04. März 2024, 09:04 Uhr) gehandelt.

Rating: Buy
Analyst: