Original-Research: SYNBIOTIC SE (von NuWays AG): BUY

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Original-Research: SYNBIOTIC SE - from NuWays AG

18.12.2024 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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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 SYNBIOTIC SE

Company Name: SYNBIOTIC SE

ISIN: DE000A3E5A59

Reason for the research: Update

Recommendation: BUY

from: 18.12.2024

Target price: EUR 12.40

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

The new group continues to take shape; chg. est.

Topic: While SYNBIOTICs largest holding WEECO performs notably ahead of

expectations and the group added two new companies to its portfolio, it also

decided to terminate the ongoing integration of CannaCare Health due to

delays in the process on the back of missing financial information.

WEECO Pharma exceeding expectations. Since the de-classification of medical

cannabis as a narcotic drug at the beginning of April, the number of

patients is seen to have doubled to some 0.5-0.6m, strongly impacting the

overall demand, which in many cases outgrows supply. This is also visible in

the ytd sales development of WEECO. With EUR 6.75m sales at the end of

October, the company already surpassed its initial FY24 target of EUR 6m.

Management now anticipates annual revenues exceeding EUR 8m (eNuW: EUR 8.2m),

making WEECO the group's largest contributor (eNuW: 54% in FY24e).

While the integrations of WEECO and greensby are well on track, SYNBIOTIC

has announced that the planned contribution of CannaCare Health GmbH into

the group will not proceed. The decision stems from delays in finalizing the

fairness opinion and CannaCare's inability to provide up-to-date financial

information. Despite this, Frank Otto, CannaCare's principal shareholder,

will retain his position on SYNBIOTIC's board of directors and as key

shareholder. Positively, the lost sales of some EUR 2m in FY24e should largely

be compensated for by the strong operational development of WEECO.

New additions to the group. Through a capital increase, SYNBIOTIC now holds

15.1% of GOC NEXUS GmbH, which specializes in the decontamination of

cannabis products using advanced cold plasma technology. The company is also

developing international cannabis processing hubs. While this addition has

no immediate (material) impact on the group's P&L, the signed cooperation

agreement ensures de-bottlenecking within the medical cannabis supply chain.

Further, SYNBIOTIC acquired 50.2% of greensby, a central platform that

connects patients, pharmacies, telemedicine providers and consumers and

enables the comparison of cannabis products. Following its integration into

SYNBIOTIC, greensby will expand its range to include hemp products and

cultivation accessories for recreational cannabis, offering up to 4,000

products. While we expect only a marginal sales contribution for now, it

fits well into the group's strategic objective to grow along the value

chain.

We confirm our BUY rating with an unchanged EUR 12.40 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/31559.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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2053367 18.12.2024 CET/CEST

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