Original-Research

MagForce AG (von GBC AG): BUY

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Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG
ISIN: DE000A0HGQF5

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 15.80 EURO
Kursziel auf Sicht von: End FY 2018
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

Important milestones achieved in 2018, Financing basis considerably expanded, FDA trial approval received

In the past financial year 2017 and in the first months of the current financial year 2018, MagForce AG set the next steps on the course for the future development of the company. The most notable among them is the FDA approval to conduct a registration study for the approval for the treatment of prostate cancer in the USA granted in February 2018. The registration study is expected to begin in the second quarter of 2018 and will include up to 120 patients. The clinical approval trial could be concluded in the second half of 2019 and the market approval is expected to be issued by late 2019. This would open up a very high-volume market for MagForce AG, which promises high sales volumes even with a low penetration rate.
Another aspect of the recent company development is the preparation of the roll-outs of MagForce technology in Europe. After the commercial treatment of glioblastoma patients was started in Germany, the markets in Poland, Italy and Spain are to be tapped in the first step. The close regional proximity to the patients should result in a significant increase in commercial treatments. In this respect, a mobile deployment solution for the NanoActivator(R) device is currently being developed, which allows for high flexibility and rapid development of possible treatment centres. Country-specific reimbursement studies will be carried out in parallel to this to ensure the financing of the treatments.

In 2017, MagForce AG took major steps in the expansion of the financial basis. In the first half of the year, within the framework of a convertible bond issue as well as in the context of a capital increase, around EUR 10 million was raised. In addition, the company signed a financing agreement with the European Investment Bank (EIB), which states that borrowed capital of up to EUR 35 million may be taken in the next three years. Thus, the company has significantly reduced risk and achieved a major milestone with regard to the financing of the future strategic steps.
The key operating figures for the past financial year 2017 are still characterised by low revenues and as a result a continuing negative earnings level. The liquidity outflow from the operating business in the amount of EUR 5.34 million was covered by the liquidity inflow from the capital measures. With the inclusion of the EIB credit agreement, the company should be able to cover the operating liquidity outflows in the coming financial years.

For the two financial years 2018 and 2019, we expect a continuation of the still low revenue base. Although we expect a slight increase of patient inquiries in Germany in 2018 and the servicing of enquiries in Poland for the first time, initial noteworthy sales are unlikely to be posted until financial year 2020. According to our expectations, break-even on EBITDA level will only be achieved in financial year 2021. In principle, we assume a comparatively high level of profitability (EBITDA margin: approx. 45%), as high economies of scale are likely to be achieved given stable conditions. This forms the basis for our DCF valuation model.
As part of our DCF valuation model, based on unchanged forecasts, we have an unchanged target price of EUR 15.80 per share. Based on the current price level, our previously issued BUY rating remains unchanged.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/16523.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
[e-mail]
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm
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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.

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Rating: BUY
Analyst: GBC