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Original-Research: MLP SE - from NuWays AG

Classification of NuWays AG to MLP SE

Company Name: MLP SE
ISIN: DE0006569908

Reason for the research: Update
Recommendation: Kaufen
from: 02.05.2024
Target price: EUR 12.00
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Henry Wendisch

RS Feedback: attractive value for money
 
On Monday, we hosted a roadshow with CEO Dr. Schroeder-Wildberg, here are
our takeaways:
 
Growth in Wealth Management: The overall growth in wealth across MLP's mass
affluent, often highly
educated client base should lead to higher demand for wealth management
consultancy. This growth in wealth should stem from (1) the rise of the
customers' income over their expected life cycle, (2) a wave of
inheritances to come in the next 5-10 years in Germany, which should be
over-proportionate at MLP's client base, given their academic background
and (3)  the growing need of MLP clients, whose life insurance expires over
the next two years far (EUR 3bn pay-out), to invest.
 
Demographic change in Germany leads to ever increasing need to provide for
old-age outside of the crippling state pension. Thus, private and corporate
pension schemes experience a growing demand, especially from young people.
This is MLP's heritage business and continues to be well served by MLP's
consultants.
 
High sales quality: With 68% of revenues being recurring, MLP's sales
quality has improved substantially over the last years (30% in 2005).
Moreover, MLP also does not rely on one revenue pillar anymore, but shows
multiple, negatively correlated revenue streams (see p. 2)
 
Light at the end of the real-estate tunnel: In the last 3 years, MLP's real
estate business experienced a perfect storm, first with the COVID related
postponements of projects (development) and secondly with the quick
interest rate hike leading to a near standstill in brokerage and
development. Now, the trough should have been reached and management sees
light at the end of the tunnel, as the market seems to be have gotten used
to current interest rates.
 
M&A war chest filled: Out of the EUR  190m net cash position, EUR  100m can be
used for acquisitions. However, current prices are still to high in order
to acquire value-accretive targets for the industrial broker segment. Thus,
MLP stays is ready and open for acquisitons should the opportunity arise.
 
The impressions given by management underpin our positive view. At current
valuation, the stock offers an attractive value for money proposition. BUY
with unchanged PT of EUR 12.00, based on FCFY'24e.

You can download the research here:
http://www.more-ir.de/d/29581.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
NuWays AG  - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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.

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-------------------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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