The Scale Index is taking at least small steps upwards again. Some shares remain real success stories anyway, such as Deutsche Rohstoff AG. And EQS promises so much potential that a major US financial investor is now getting on board. This time, the three questions go to Jonathan Sauppe from beaconsmind.
20 November 2023. FRANKFURT (Börse Frankfurt).EQS Group (DE0005494165) is currently the big topic in Scale share trading: US financial investor Thomas Bravo wants in. He is offering EUR 40 per share in the company, which specializes in press releases, compliance and investor relations. "Over the past 23 years, EQS has developed into a leading RegTech company that provides software solutions for thousands of customers, including all DAX40 companies and blue chip companies worldwide," explained Achim Weick, founder and CEO of EQS. The cooperation with Thoma Bravo enables the company to embark on the next chapter of its growth story. Before the offer was announced, the share price was EUR 22, afterwards EUR 40.
Share price recovers after weakness
EQS is therefore one of the top performers in the Scale segment over a twelve-month period. Also included: Pantaflix (DE000A12UPJ7). The share price has risen from EUR 0.93 to EUR 1.73 since November 2022. The company, which was founded by actor Matthias Schweighöfer among others, is repositioning itself and wants to focus on film productions again instead of streaming. Vectron Systems (DE000A0KEXC7), the Veganz Group (DE000A3E5ED2) and The Plattform Group (DE000A2QEFA1), formerly Fashionette, also performed well. The shares gained 63%, 42% and 38% respectively, but had previously also lost a lot of ground.
The segment as a whole continues to suffer from the general small-cap weakness. The Scale All Share stood at 1,132 points on Monday morning, the same level as the previous month. However, the lows appear to have been passed, with the index falling to 1,077 points at the end of October.
Deutsche Rohstoff: Just below all-time high
Deutsche Rohstoff AG (DE000A0XYG76) is a flagship stock - also in the longer term. The share climbed to an all-time high of 35.80 euros at the beginning of the month. It is now down 32.25 percent and the recent fall in the oil price is making itself felt. The company, which mainly produces oil and gas in the USA, has raised its forecast again due to the sale of assets in Utah. Deutsche Rohstoff now expects an EBITDA of 152 to 162 million euros for this year, compared to 138 to 148 million euros previously. The sales forecast remains unchanged.
Several analysts consider the share price to be far too low: Alster Research, for example, has a target price of 52.50 euros and recommends the share as a buy. First Berlin, Oddo BHF and Kepler Cheuvreux also recommend buying and consider the share to be fairly valued at 50 euros, 44 euros and 45 euros respectively.
Good figures, poor valuation
The Düsseldorf-based company Cliq Digital (DE000A35JS40), which offers subscription-based streaming services for films, music, audio books, sport and games, also reported new records for turnover and EBITDA in the first nine months of this year.However, the stock market is not convinced, with the share currently trading at EUR 17.16 after EUR 25 at the start of the year.At its high for 2021, it was even over 40 euros.
According to analysts Montega, however, the valuation and the recent drop in the share price are not in line with the key financial figures and operating quality.
Helma share price falls and falls
Meanwhile, real estate stocks from the Scale segment are suffering from the industry crisis, such as Noratis (DE000A2E4MK4), Publity (DE0006972508) and EV Digital Invest AG (DE000A3DD6W5). Things look particularly bad for the solid construction house provider Helma Eigenheimbau from Lehrte near Hanover. A supplier already went bankrupt in 2022, and Helma is now being hit by the general real estate crisis. At the beginning of 2022, the share price was still 68 euros, now it is only 3 euros. Nebenwerte-Magazin speaks of a "descent in installments" and the "tragedy of a former beacon of hope".
Target in Price
|Price in Euro today
|Mensch und Maschine
|The Naga Group
You have just announced that you have completed your strategic transformation with the acquisition of two companies. Will you be able to return to profitability by the end of the 2023 financial year?
With the completion of our strategic transformation, in particular through the acquisition of T2 Vertrieb and KADSOFT, we have significantly strengthened our position in the Infrastructure and Software/SaaS (Software as a Service) segments. We expect the integration of these companies and the realization of synergies to have a positive impact on our finances. For the 2023 financial year, we are aiming for an improvement in EBITDA and a return to profitability in the second half of the year.
Your turnover is manageable for a listed company. What are the sales prospects for the next few years?
Thanks to our recent acquisitions and expansion into new markets, particularly in the Middle East, we expect significant sales growth, specifically in the double-digit percentage range.
Things have not been going so well on the stock market recently. What speaks for your share?
Despite the current challenges on the stock market, our share is attractive and our new strategy will also be reflected in the share price in the long term. The latest acquisitions, the strengthening of our infrastructure and software services and our expansion into new markets such as Dubai are key indicators of our long-term growth potential. We are also working consistently on improving our digital SaaS products, will soon be launching our new white label app and are diversifying our entire product range through strategic acquisitions.
by: Anna-Maria Borse © 20 November 2023, Deutsche Börse AG