9M figures in line with expectations
During the 9M reporting period, consolidated revenues of MAX21 AG (ISIN DE000A0D88T9, Open Market, MA1 GY) increased by 27.7% (yoy) to €5.3 mln (adjusted for the discontinued NECDIS business; 12.9% non-adjusted). Albeit still negative, EBITDA increased substantially from €-3.1 mln to €-0.9 mln. This improvement is attributable to the positive operating result of Binect as well as to cost savings in personnel and other operating expenses. With T€640, liquid funds as of Sep 30 appear mediocre. However, this figure is biased due to concentration limits in the context of a factoring agreement for Binect; according to our model, liquidity at year end should improve.
Binect significantly increased its strategically relevant revenues and sustainably confirms the b/e on quarterly level. Total mail volume increased to 80.3 Mio. (+12.3%) which underlines our estimate of approx. 112 mln for the full year. Strategic revenue, i.e. the mailings via Binect´s proprietary systems almost tripled and has now a 26% share of sales revenues. Still, the major part of mailings is being processed by via E-POST BUSINESS BOX, operated by Deutsche Post.
KeyIdentity, while still not profitable, advanced its strategic key figures: Monthly recurring revenues increased from T€55 to T€89, getting closer to the T€100+ targeted by the company. Life time value of all contracts extended from €2.5 to € 3.4 mln, largely due to the acquisition of a large client (Basler Versicherungen). Not only the number of contracts but also the mean contract size increased.
The company confirms its previous top line guidance on group level of about €7 mln, and now expects an operating loss on EBITDA level of max. €1.5 mln. During the company presentation on the Equity Forum in Frankfurt on Nov 27, CEO Nils Manegold, confirmed that the break-even in 2019 is the declared target of MAX21 but is subject to the strategically important advancement of the new product MIRA (Managed Identity Role Access).
Based on the 9M figures we confirm a fair value of €1.79 per share and reiterate our “Buy” rating.
Max 21 AG, formerly MAX21 Management und Beteiligungen AG, is a Germany-based technology holding that specializes in the areas of information security and digital communications. Among others, the Company holds interests in Binect GmbH and KeyIdentity GmbH. Binect GmbH is a provider of encrypted communication, and develops software that allows or collect and coordinate e-mails from various platforms. In cooperation with Deutsche Post AG, Binect GmbH offers a hybrid business communication and postal distribution solution, including printing, enveloping, franking and delivery. KeyIdentity GmbH provides digital access and identity security solutions. It is a supplier of the LinOTP Product Suite, which is used in adaptive multi-factor authentication.
Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.