23.11.2015 - Equity Research Einzelstudie // kaufen

Research Report (Update) – Sygnis AG - english - buy

pdf For the original study, please click here
Unternehmen: SYGNIS AG
Branche: Biotechnologie-Pharma
Rating: kaufen
Kurs bei Erstellung in €: 2,60
Kursziel in €: 3,75
Mögl. Interessenskonflikt gem. §34b Abs.1 WpHG und FinAnv: 4;5a;5b;6a;10;11

Product launch plan fulfilled; sales network expanded; capital increase significantly improves financial scope for further sales expansion

In its 2015 nine-month report, SYGNIS AG presented figures that were within our expectations. The continued low revenue level of €0.31m (9M/14: €0.30m) reflects the fact that its two most important product lines, TruePrimeTM and SunScriptTM, are still in the early marketing phase. Both product lines were only globally launched in the current financial year 2015, meaning, that they first have to go through a typical lead time.

Based on the continued low revenue contributions, despite a recorded increase in kits sold to 149 in Q3 2015 (1 HY 2015: 102), in the nine-month figures for 2015, SYGNIS AG still posted a negative EBIT of -€2.71m (9M/14: €-2.27m), as expected. This includes extraordinary expenses related to the optimisation of administrative structures (reduction of workforce, relocation within Heidelberg and transformation of Heidelberg into a production site) totalling €0.36m. Without extraordinary effects, SYGNIS AG would have achieved near constant development of the EBIT (adjusted EBIT: -€2.35m).

In the period under review, SYGNIS AG therefore focused on launching its two new product lines and expanding its sales network, as an important component of its own sales. With the launch of five kits within the two product lines, the company fulfilled its product launch plan. In addition to Germany, the products are currently also being sold in Spain, France, Belgium, Canada, the UK, Australia, China, Finland, Ireland, Switzerland, Taiwan and Japan. They can also be purchased directly from the newly established online shop.

A further important aspect is SYGNIS AG’s cash position, given the continued low revenues and the associated negative cash flow. As at 30/09/2015, the company’s cash position totals €0.61m (31/12/14: €3.76m) and will significantly increase following a successful capital increase. By issuing 3.86m new shares at a subscription price of €1.90 per share (7:2 subscription ratio), the company aims to increase its equity by €7.33m. The company aims to use the cash proceeds primarily to finance operating business until break-even is achieved, at the latest on 31 December 2017. Furthermore, SYGNIS AG plans to partially repay promotional loans and retain liquidity to increase financial flexibility.

We have not changed our last published forecasts (see the research study dated 08/10/2015) and therefore have not yet included the currently ongoing capital increase (pre-money). After completion of the capital increase, we will update our forecast planning to include the cash proceeds.

In view of these unchanged forecasts, we reaffirm the price target calculated as part of the DCF valuation model of €3.75 per share (pre-money) as at the end of financial year 2016. Based on the current price level, our previously issued BUY rating remains unchanged.


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