Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG (von First Berlin Equity Research GmbH): Buy

Original-Research: Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG - from First Berlin Equity Research GmbH 17.11.2025 / 14:32 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group. 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. Classification of First Berlin Equity Research GmbH to Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG

Company Name:	Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG
ISIN:	DE0008041005
Reason for the research:	Update
Recommendation:	Buy
from:	17.11.2025
Target price:	EUR 1.10
Target price on sight of:	12-18 months
Last rating change:	-
Analyst:	Christian Orquera

First Berlin Equity Research has published a research update on Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG (ISIN: DE0008041005). Analyst Christian Orquera reiterated his BUY rating and decreased the price target from EUR 1.50 to EUR 1.10.

Abstract:
DEWB has reported its H1 2025 results, which were broadly in line with our expectations. EBIT amounted to €-0.2m (FBe: €-0.1m; H1/24: €0.4m), and the net result was €-0.9m (FBe: €-0.7m; H1/24: €-0.2m). Liquid assets increased to €1.9m following the successful sale of the LAIC Token 21, which generated cash inflow of about €2m and a profit contribution of €0.3m. Also, in June 2025 DEWB placed a five-year €4m convertible bond (4.5% coupon), which was oversubscribed despite the difficult minibond market. Proceeds were used to repay short-term bank debt, extending the financing profile and reducing dependence on LAIQON shares as collateral. The portfolio value declined moderately to €28.8m (YE/24: €30.6m), mainly due to the disposal of the LAIC Token 21 holding. The reporting period was characterised by continued weakness in small-cap and fintech valuations but solid operational progress at key holdings - particularly LAIQON and Stableton. Going forward, DEWB aims to further expand its portfolio, with LAIQON as key value driver. However, given the subdued valuation environment and limited scope for profitable exits until year-end, we have adjusted our financial projections to reflect lower potential for other operating income. Our residual income model now yields a lower price target of €1.10 (previously €1.50), and we maintain our Buy rating (upside: 277%), reflecting the long-term value potential of DEWB's core holdings once market conditions normalise. The reverse stock split approved at the 2025 AGM and expected to be implemented in H2/25 should reopen equity-financing options.