Original-Research: MLP SE (von NuWays AG): Buy

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Original-Research: MLP SE - from NuWays AG

12.12.2024 / 09:01 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of 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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Classification of NuWays AG to MLP SE

Company Name: MLP SE

ISIN: DE0006569908

Reason for the research: Update

Recommendation: Buy

from: 12.12.2024

Target price: EUR 12.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Strategy roundup: AuM growth, corporate clients & digitalization

Topic: earlier this week, we attended an analyst dialogue with MLP's

C-level. Here are our key takeaways:

AuM strategy: having shown a 10% AuM growth CAGR (FY'20-9M'24), MLP should

continue to maintain this high level of growth, due to several reasons: (1)

First, steady inflows from 83k customers (eNuW) with an average monthly

savings plan of EUR 500 currently contribute EUR 0.5bn annually to the now EUR

61bn total AuM. Especially the young customers show an above average

behaviour, as 70% of young customers have a savings plan with MLP. (2)

Secondly, an incoming wave of inheritamces in Germany should create demand

for wealth management solutions. Here MLP is especially well positioned

having a mass-affluent customer base with a largely academic background,

which often also holds true for the respective testators. (3) Thirdly, a

meaningful part of MLP customers are expecting payouts from expiring life

insurance policies, which create a cash influx for which a suitable

investment strategy is offered by MLP. On group level, MLP is well

positioned to service the growing demand for wealth management with its own

banking business (bank and custody accounts for savings plans), but also

benefits from

FERI's strong wealth management and multi-asset expertise which offers all

services together with the MLP consultant.

Corporate client strategy: MLP's corporate client strategy focuses on

insurance solutions for corporates, especially corporate pension schemes,

health insurance and employee benefits (under the brand TPC and :pxtra) as

well as corporate insurance brokerage (under RVM), the latter serving as a

competence centre for highly specialized industrial insurances. Here,

referrals within the MLP group (e.g. from wealth management to industrial

brokerage or vice versa) seems to be working well, which was shown by 10x

increase in RVM mandates diverted from within the group since 2021.

Digitalisation: MLP continues to digitize in all areas, but we shed the

light on two examples.

(1) a more digital customer experience. First, it is not designed to move

away from a personal consulting through the MLP consultant, but rather to

complement the consulting approach in a more digital customer experience,

ultimately improving the customer satisfaction and preventing potential

churn via the MLP Financial Home (client portal showcasing the client's

asset structure and insurance contracts). Moreover, the incorporated gap

analysis showcases the consultant as well as the client a potential

underinsurance or the need for action in order to reach the personal

financial goal and protection.

(2) busines automation. Secondly, the effective use of automation as well as

the company internal AI assistance (similar to 'ChatGPT') serves as a key

enabler of more efficient procceses, but also serves as a digital database

of the profound and interdisciplinary knowledge across the group. For

example, the claims management for claims below EUR 5k at the underwriting

agent DOMCURA is fully digitized and reduced the processing time by more

than 90% (eNuW). Here, the 'Claims-AI' (introduced in July 2024) handles

incoming claims, assesses the situation, matches and cross-checks the

written text with pictures attached and creates a recommendation for the

clerk with a ready to send reply within seconds. All the clerk has to do is

to approve it. Moreover, this has reduced the claims backlog by more than

80% within a few months.

Looking ahead, MLP will announce new mid-term (2028e) targets with FY'24

results on 13th March 2025, as the old mid-term 2025 targets will be next

year's guidance. The new targets should be 'no less ambitious than our

previous medium-term planning' according to the CFO Reinhard Loose.

Consequently the announcement should serve as a catalyst for the stock, as

MLP's underlying financial performance over the last years does not match

the share price development, in our view. Thus, we reiterate BUY with

unchanged PT of EUR 12.00, based on FCFY'24e.

You can download the research here: http://www.more-ir.de/d/31531.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2049503 12.12.2024 CET/CEST

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