In 2022, there was not much to be gained on the global stock markets, and the scale segment was no exception. The hopes for 2023 are all the higher. This time, the "Three Questions" go to Tobias Hoffmann-Becking from Blue Cap.
16. January 2023. FRANKFURT (Börse Frankfurt). The new year is also starting with momentum for the Scale segment. Thanks to generally good sentiment on the stock markets, the Scale All Share, which tracks all Scale members, is at 1,301 points on Monday morning, compared with 1,229 points at the end of the year. The Scale 30 selection index currently stands at 1,185 points, up from 1,138 at the end of the year.
However, the Scale All Share all-time high from 2021 (1,969 points) is still a long way off. Although 2022 was a year to forget for almost all asset classes, small companies in particular were punished as far as equities are concerned. The Scale All Share fell 36 percent last year. "Young companies are having a particularly hard time", "The stock market environment is incredibly challenging" - this and similar comments were made by scale companies last year. Even a business model that is often intact was of no use.
Formycon as a leader
Nevertheless, there were also success stories: The share price of the latest scale member Cantourage (DE000A3DSV01), for example, has still doubled - despite cooling: after 6.48 euros at the time of listing on November 11, the shares of the provider of medical cannabis now cost 12 euros.
The best scaled stocks have posted gains of between 20 and 84 percent over the past twelve months; these currently include Formycon (DE000A1EWVY8), Daldrup & Söhne (DE0007830572), Cliq Digital (<DE000A0HHJR3>), SGT German Private Equity (DE000A1MMEV4) and Deutsche Rohstoff AG (DE000A0XYG76). Formycon, based in Martinsried near Munich, is occasionally traded as a new biotech. The company develops biosimilars, i.e. low-cost biopharmaceutical follow-on products. In the summer, FYB201 for the treatment of severe retinal diseases was the first product to be approved in Europe.
2G with highest trading volumes
However, the highest-turnover scale stock in 2022 was 2G Energy, a stock also popular with green investors. In the past year, 2G shares worth 173 million euros were traded on Xetra and the Frankfurt trading floor. Formycon (162 million euros), Cliq Digital (132 million euros), Deutsche Rohstoff AG (120 million euros) and Mensch und Maschine (103 million euros) follow in second to fifth place.
As a manufacturer of combined heat and power plants, 2G is benefiting from the growing demand for decentralized energy supply. Sales and operating profit also increased significantly in the third quarter. 2022, the share price has hardly moved, but since the beginning of 2019 it has more than quadrupled, and since the IPO in 2007 it has even increased elevenfold.
Vectron: Share price increase of more than 40 percent
The cash register manufacturer Vectron from Münster - known to many through cash register systems in bakeries and in the gastronomy - started very well into the new year. The share price climbed from 3.29 euros at the end of the year to currently 4.65 euros. This is likely to be driven by an acquisition: Vectron announced the purchase of Acardo at the end of December. The company, active primarily in the food retail, drugstore, pharmacy and cinema sectors, is considered a pioneer in coupon marketing - i.e. marketing via codes, vouchers and discounts.
The analysts of GBC welcome this: "With the integration of Acardo products and services, Vectron's product range will be significantly expanded," they write. Vectron in its new form will be much less dependent on the volatile POS business, they add. Although GBC lowers the sales and earnings estimates in line with the company's expectations, the new price target of 9.20 euros (previously 9.35 euros) remains significantly above the current quotation. The recommendation therefore remains "Buy".
Lloyd Fonds becomes Laiqon
There has been a new name in the Scale segment since the beginning of the year: Laiqon (DE000A12UP29). Behind it, however, is the old familiar scale member Lloyd Fonds. "The new name Laiqon is a consistent and logical next step and thus also a strong signal to our shareholders and customers," explained CEO Achim Plate on the occasion of the renaming. "The development work of the last three years has created a modern and established asset manager with an innovative platform strategy." However, the stock has lost significantly in 2022, and after a brief recovery, it has recently headed back down. On Monday morning, Laiqon is trading at 6.72 euros, a year ago it was twice as much.
"Blue Cap too heavily punished"
2022 was also not an easy year on the stock market for the investment company Blue Cap (DE000A0JM2M1). The share price fell from 30.80 euros at the end of 2021 to 18.65 euros at the low, currently 23.60 euros. At the same time, the business figures were good.
The analysts at Warburg Research spoke of "strong nine-month figures", but lowered their earnings estimates somewhat due to the pressure on margins. However, the price target of 40 euros is well above the current quotation, and the recommendation therefore remains "Buy". "Unjustly punished", SMC Research already judged at the end of October with regard to the Blue Cap price. The company had vigorously restructured the portfolio in the last two and a half years and is now reaping the rewards of this structural change. The analysts named 38 euros as a target price and also continued to recommend buying.
Analysis house/bank | Scale-Company | Recommendation | Target price in Euro | current rate in Euro |
GSC | EQS | Buy | 35.00 | 23.30 |
Bank M; | Datron | Buy | 16.6 | 11.90 |
GSC | ERWE Immobilien | Buy | 3.05 | 1.34 |
Hauck & Aufhäuser Lampe | Beaconsmind | Buy | 30.00 | 10.50 |
First Berlin | Deutsche Rohstoff | Buy | 34,00 | 25,50 |
GSC | Scherzer & Co | Buy | 3.15 | 2.70 |
The Blue Cap share has recovered strongly since its low at the end of September. What are the reasons for this - apart from the general improvement on the stock market?
The main driver was certainly our operating performance. We performed well in 2022 in a very challenging environment and actively and closely supported our investments. Our nine-month figures have recently confirmed this, which had a positive impact on the share performance at the end of the year. Our investors have also appreciated the fact that we have restructured, optimized and further diversified our portfolio since 2020. Because that is paying off today.
Among other things, you have benefited from the acquisitions made - specifically the HY-LINE Group, H+E and Transline - but you have also grown organically. Where do you see the greatest opportunities in the future?
The last few years have shown that we benefit from active portfolio management and can make good acquisitions time and again. Accordingly, we see great opportunities in further strengthening our portfolio. Inorganically, this is done primarily in growth sectors and via add-on transactions. The transformation in our existing holdings is focused on identifying growth levers and initiating appropriate measures to leverage them.
From an investor's point of view: What speaks in favor of your stock?
We offer investors access to an actively managed portfolio of German mid-cap companies that is not otherwise available on the stock market. This gives investors the opportunity to participate in various attractive sectors and cycles. In addition, our stock is currently trading at a discount of over 50 percent to our net asset value. Minimizing this gap is the daily incentive of our capital market work. There is therefore considerable catch-up potential here in which our shareholders can participate.
As an investment company, Blue Cap AG invests in medium-sized companies and supports them in their entrepreneurial development. The portfolio companies are headquartered in German-speaking countries, generally generate sales of between 30 and 80 million euros and have an intact core business. The focus is on the adhesives and coatings, plastics, production and medical technology, and business services sectors.
from: Anna-Maria Borse © 16. January 2023, Deutsche Börse AG
Hoffmann-Becking
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock markets and economic topics.
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