Small and large price gains, small and large losses - the small cap segment Scale presents itself highly heterogeneous. Overall, the trend has been upward again recently. The three questions this time go to Achim Plate, CEO of Lloyd Fonds.
16 August 2022. FRANKFURT (Börse Frankfurt). With the broad recovery on the stock market, the Scale segment with small and medium-sized companies is also going up. The Scale All Share, which tracks all Scale members, is at 1,518 points on Tuesday morning. A month ago, it was 1,464 points. The Scale 30 selection index is currently at 1,331, up from 1,215 points in mid-July. But the index hides extremely different developments.
Streaming provider Cliq expects record year
The shares of Cliq Digital (<DE000A0HHJR3>) have performed remarkably well recently. The share price is at 31.45 euros on Tuesday morning, compared to only around 22 euros in mid-June and 24.50 euros at the beginning of the year. Drivers are good corporate news: The streaming provider for movies, music, audio books, sports and games was able to significantly increase sales and Ebitda in the second quarter. The company also held out the prospect of a record year in 2022. The number of paid memberships is expected to crack the two-million mark by the end of the year, with sales rising to at least 250 million euros and Ebitda to over 38 million euros.
Deutsche Rohstoff: On the winning side as an oil producer
Deutsche Rohstoff AG (DE000A0XYG76) is also one of the clear winners this year - despite interim share price losses. The share price rose from 21 euros at the beginning of the year to a peak of 33.70 euros. Currently it is still 27.40 euros. The company, which mainly produces oil and gas in the USA, is benefiting from the high oil price and last week reported the strongest operating half-year in the company's history. Sales climbed to 72 million euros from 39 million euros a year earlier, and net income to 33 million euros from 18 million euros.
Drilling service provider as best performing value
Cliq and Deutsche Rohstoff are among the best performing scale stocks over the past twelve months. The performance list is headed by drilling and environmental services provider Daldrup & Söhne (DE0007830572), followed by Deutsche Rohstoff AG, commercial real estate investor Publity (DE0006972508), biopharmaceutical downstream specialist Formycon (DE000A1EWVY8), Cliq Digital and Ernst Russ (DE000A161077), shipping company and maritime investment manager.
The share with the highest turnover in the Scale segment continues to be 2G Energy (DE000A0HL8N9). In the months of January to July, turnover in the shares of the block-type thermal power station provider - a favorite of "green" investors - on Xetra and Börse Frankfurt was just under 132 million euros. Second to fifth place went to Formycon, Mynaric, Deutsche Rohstoff AG and Cliq Digital, each with a turnover of around 85 million euros.
MagForce, Naga and Advance Blockchain on the losing side.
MagForce (<DE000A0HGQF5>) is currently the sad bottom performer. At the end of July, the medical technology company with a focus on oncology filed for insolvency - according to market observers, completely unexpectedly. The share price plummeted. The company is insolvent. According to the company's ad hoc announcement, the goal is to continue to maintain and establish NanoTherm therapy for the treatment of prostate cancer and glioblastomas on the market. To this end, MagForce is in talks with investors.
Fintech The Naga Group is also part of the closing group. The share currently costs 1.82 euros, compared with 7.65 euros at the beginning of the year. The company - operator of neobroker Naga, cryptocurrency platform Nagax and neobanking app Naga Pay - is suffering from the slump in the crypto market. Naga took down its annual guidance for the current fiscal year 2022 and had to revise its 2021 figures downward.
Advance Blockchain: unduly punished?
Advanced Blockchain AG (DE000A0M93V6) is also among the victims of the crypto market slump. The share price fell from 13.50 euros at the beginning of the year to currently only 4.62 euros.
According to the analysts at GBC, however, the Advanced Blockchain share is now far too cheap. They calculate an enterprise value of around 83 million euros, which would translate into 21.99 euros per share. However, due to the current "crypto winter", they have applied an additional discount of 55 percent and thus arrive at a price target of 10 euros.
Lloyd Fonds with many fans
For Lloyd Fonds (see "Three questions to..." below), the year is not going so well either, at least on the stock market. The share of the bank-independent asset manager has - after a strong rise in 2021 - fallen from over 16 euros to 6.74 euros this year. However, some analysis houses advise to enter. According to Hauck & Aufhäuser, although the difficult market environment is noticeable, Lloyd Fonds has therefore remained below expectations in the last financial year and the first half of 2022. The analysts therefore reduce the price target from 18 to 11 euros, but maintain their "Buy" recommendation.
SMC Research also advises Lloyd Fonds. The ambitious growth agenda ensures high price potential, they say. The analysts trust the company to achieve the targets set. However, due to the potentially prolonged difficult capital market conditions and higher interest rates, the fair value drops from 17 to 13.50 euros. Warburg Research also maintains its "Buy" recommendation while reducing its price target, from 16.50 to 13.90 euros.
Analysts/Bank | Company | Recomendation | Price target in euro | Price today |
Warburg Research | Blue Cap | Buy | 42.00 | 27.00 |
SMC Research | Blue Cap | Buy | 44.30 | 27.00 |
SMC Research | Mensch und Maschine | Strong buy | 65.00 | 51.30 |
GBC | Media and Games Invest | Buy | 5.75 | 2.60 |
First Berlin | Media and Games Invest | Buy | 4.40 | 2.60 |
SMC Research | Beta Systems Software | Buy | 47.50 | 43.20 |
Montega | Helma Eigenheimbau | Buy | 82.00 | 39.30 |
Montega | Cliq Digital | Buy | 70.00 | 31.45 |
The Lloyd Fonds share performed extremely well in 2020 and 2021, but this year it is weakening. Is that just due to the general market trend?
Market developments led to price declines and profit-taking in our industry, including Lloyd Fonds. In the case of our share, no huge turnover is required for price swings, and the average trading volume in the small & mid cap sector still declined in the first half of 2022 compared to 2021. I am very confident that our growth perspective will also be priced in again when the market calms down.
You started as a real assets provider and specialized in liquid mutual funds in 2018, but this June you again announced a realignment. What are the key points?
To ensure our future organic and scalable growth, our "Strategy 2023/25 2.0" is absolutely focused on customer needs. The aim is to offer an excellent range of wealth products and solutions with a focus on SDG (Sustainable Development Goals)/impact investing. The most visible expression of the new strategy will be our new name Laiqon AG. With "Growth 25", we expect a further increase in assets under management from the current 4.7 billion euros to 8 to 10 billion euros by 2025 as we implement this strategy.
From an investor's point of view: What speaks in favor of your share?
With our growth forecast for assets under management and a planned Ebitda margin of 45 percent based on net sales by the end of 2025, we are an attractive long-term investment case. As a full service provider, we innovatively offer products and solutions in sustainable investing for private and institutional clients with our platform strategy.
Lloyd Fonds AG is a financial house that generates returns for its partners and customers with active, sustainable and digital investment solutions. Products include equity, bond and balanced funds with a clear focus on active alpha strategies. Digital and risk-optimized investment solutions for private investors and institutional clients are offered via WealthTech LAIC and FinTech growney. In addition - for wealthy clients - personal asset management is offered.
By: Anna-Maria Borse
© August 16, 2022, Deutsche Börse AG