Original-Research

SYGNIS AG (von GBC AG): BUY

Original-Research: SYGNIS AG - von GBC AG

Einstufung von GBC AG zu SYGNIS AG

Unternehmen: SYGNIS AG

ISIN: DE000A1RFM03

Anlass der Studie: Research Report (Update)

Empfehlung: BUY

Kursziel: 4,60 EUR

Kursziel auf Sicht von: End FY 2015

Letzte Ratingänderung:

Analyst: Cosmin Filker, Felix Gode

Marketing activities of SensiPhi(R) started after delays, break-even

forecasted for 2016

With revenues of EUR0.16m (EUR0.32m in 2013), SYGNIS AG had lower revenue

in the first half of 2014. The main product, SensiPhi(R), was launched on

the market in the first quarter of 2014, but the worldwide licence partner,

Qiagen, has delayed in launching marketing activities. Furthermore, the

licence agreements concerning other products of the SYGNIS range have not

progressed as projected. Even though a patent agreement was made concerning

the DoubleSwitch technology with the German company SYSTASY Bioscience GmbH

in the first half of 2014, the resulting revenue has also been lower

according to the expectations.

Due to the low sales volume, the operating profit (EBIT) was negative with

EUR-1.53m. On the positive side, there were cost savings measures

implemented resulting in the reduction of overall expenses from EUR2.36m

(first half of 2013) to EUR1.69m (first half of 2014).

The revenue level required to reach operative break-even is approx. EUR3.4m

based on the present cost structure of the company. In the 2014 business

year, however, reaching break-even is not expected based on the expected

sales revenue of EUR0.71m. The same applies for the coming business year in

2015 with a predicted sales volume of EUR2.62m and an EBIT in the amount of

EUR-0.85m. This is due to the delayed growth curve of the completely new

technology based on the SYGNIS enzyme SensiPhi(R). The lower expected sales

revenue is based on the assumption that there will be no significant

front-up-fees incurred connected to licensing new products in the current

business year.

In the 2016 business year, however, SYGNIS AG could reach a significant

positive EBIT of EUR2.65m and thus reach break-even based on the expected

sales volume of EUR6.23m. Besides the expected increase of revenue of

Qiagen kits containing the SensiPhi(R) enzyme, the expected market launch

of PrimPol by the company is a decisive criterion. Marketing by the company

primarily yields higher revenues, because all sales proceeds are included

in the revenue. There are no significant investments required in this

respect, because PrimPol can be produced using the existing laboratory

facilities and the enzyme is completely developed. Resellers shall be

involved in case of an OEM business to reach broader marketing channels.

Based on increased revenue and lean organisational structures, the

operating profit is expected to show markedly stronger growth as compared

to sales. The profit is based on our long-term expected high EBIT margin of

65.0%.

Using a DCF model, we calculated a fair value per share of EUR4.60

(earlier: EUR6.00). Based on the current lower share price, we confirm our

BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/12461.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

[e-mail]

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

Rating: BUY
Analyst: GBC
Kursziel: 4,60 Euro