Original-Research: SYGNIS AG - von GBC AG

Einstufung von GBC AG zu SYGNIS AG

Unternehmen: SYGNIS AG
ISIN: DE000A1RFM03

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 3.70 EUR
Kursziel auf Sicht von: End FY 2017
Letzte Ratingänderung: 
Analyst: Cosmin Filker; Felix Gode, CFA

SYGNIS AG is a life sciences company listed in the Prime Standard of the
German Stock Exchange (Deutsche Börse). The company focuses on the
development and marketing of innovative molecular biology technologies in
the NGS (next-generation sequencing) sector. SYGNIS AG has acquired
Expedeon Holdings Ltd. through a capital increase in kind. This expanded
the product range into the field of proteomics, the second most important
sector in the field of life science. Important synergy effects are arising
especially in the sales area, as Expedeon has a direct sales network in the
most important life sciences markets worldwide as USA, UK and Asia.   After
acquiring Expedeon Holdings Ltd., a portion of the liquidity inflow
originating from the last capital increase was used for the acquisition of
the US electrophoresis supplier C.B.S. Scientific. C.B.S. Scientific acts
as a system provider in the field of electrophoresis and thus this
acquisition too is to be viewed as a horizontal extension of the product
range and thus the SYGNIS AG workflow.
 
The acquisition of Expedeon Holdings Ltd. will be crucial in determining
SYGNIS AG's future corporate development in our opinion. Consolidation of
both companies alone results in considerably higher levels of revenues and
profit, as is already apparent from the situation as at June 30, 2016. We
must bear in mind with this that Expedeon was only included in the past
reporting period from August 2016, i.e. for just two months. The positive
effects should be significant in the fourth quarter of 2016 and in
particular in the 2017 financial year, based solely on full inclusion of
the new company and the integration successes in the sales division at
SYGNIS AG. From the 2017 financial year, we have also taken into account
inorganic effects from the acquisition of C.B.S. Scientific. At an annual
revenue of USD 1.50 million (corresponding to EUR1.42 million), the
laboratory supplier represents a positive contribution to earnings and
liquidity.
 
According to statements from the company, a fall in the negative operating
result is expected initially as part of the revenue increases expected,
with the break-even point expected for the coming 2017 financial year at
quarterly level. Break-even at the level of the overall year is projected
for the 2018 financial year.
 
Aside from the typical effects of scale, our results forecasts also take
into account potential synergy effects against the background of the
consolidation of administrative structures and production capacities. The
intention for instance is for synergy effects to be leveraged from the
planned consolidation of production operations and manufacturing processes.
Production operations and manufacturing processes are due to be relocated
to the UK in the fourth quarter of 2016, which should result in further
optimization in terms of the cost structure. The company's future costs
should therefore be characterized by development in administrative
expenditures and in R&D costs that is disproportionately low compared with
revenues. By contrast, the sales and production costs should become
increasingly significant. The planned merger of the production sites of the
two US-based companies, Expedeon Inc. and C.B.S. Expedeon in San Diego, is
also to be viewed in this light. High profit margins are possible for the
future as a result of effects of scale and synergies. Long term we expect
an EBITDA margin amounting to 45.0%.
 
The fair value per share at the end of the 2017 financial year equates to a
target price of EUR3.70 (previously: EUR3.95). The reduction in the revenue
and results forecasts for the 2016 and 2017 financial years in particular
have the effect of reducing the target price. Based on the current share
price of EUR 1.66, we rate it a BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/14713.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben
analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben:
(4,5a,5b,6a,7,10,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: 
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++

-------------------übermittelt durch die EQS Group AG.-------------------


Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. 
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.