Original-Research: MLP SE - from NuWays AG 16.05.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: MLP SE - from NuWays AG

16.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to MLP SE

     Company Name:                MLP SE
     ISIN:                        DE0006569908

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        16.05.2025
     Target price:                EUR 13.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

Q1 slightly softer than expected, key drivers remain intact

Topic: MLP released Q1 results which came in slightly lower than
expectations on sales and EBIT, but nevertheless show the anticipated RE
recovery, which should pose the FY'25 guidance well in reach.

Sales grew by 6% yoy to EUR 301m, mainly driven by Wealth (+8% yoy to EUR 125m),
Life & Health (+10% yoy to EUR 64m) and P&C (+5% yoy to EUR 102m), whereas sales
from the nearly stopped RE development came in as expected (-92% yoy to EUR
0.3m).

EBIT came in at EUR 37.8m with a 12.6% margin (-0.4pp yoy), lower than
expected (eNuW: EUR 42m) mainly driven by higher than initially expected
commission expenses (EUR 141m, +11% yoy), especially in banking and RE
brokerage. Also, only minor performance fees of EUR 0.4m had a little impact
on Q1's EBIT (EBIT effect: EUR 0.3m vs. EUR 2.5m in Q1'24, eNuW). Excluding this
effect, underlying profitability increased again by 0.2pp yoy to a 12.5%
EBIT margin ex performance fees, highlighting the robust business model,
also in times of economic uncertainty and capital market volatility. On a
segmental basis, the absolute yoy changes in EBIT came from Financial
Consulting (+ EUR 2.7m), Deutschland.Immobilien (EUR +2.3m) and DOMCURA (EUR
+0.6m), which cushioned the decline at Banking (EUR -2m, due lower net
interest income and higher commission expenses) and FERI (EUR -2.6m, due to
almost no performance fees).

Furthermore, AuMs remained largely stable at EUR 62.8bn (-0.5% qoq, of which
-1.9% performance related and +1.4% from very strong net capital inflows of
EUR 900m), which compares well against the market development (e.g. S&P 500: -
4.6% qoq).

The RE recovery is going on, as sales from RE brokerage increased from a low
level by 158% yoy to EUR 7.9m. A key highlight, was the rising brokerage
margin (sales in % of brokered volume), which rose by 2.5pp yoy. This effect
should continue throughout the year, where the sales of new higher margin
brokerages, which is contracted right now, are recognized. Additionally, a
few old and new development projects, which are seen to generate RE
development sales to the tune of EUR 5-6m in FY'25e (eNuW), should altogether
lead to an EBIT break-even of the Deutschland.Immobilien segment, in our
view.

Against this backdrop, the FY'25 guidance seems well achievable, even in the
event of only minor, but highly profitable performance fees. Therefore, we
reiterate our BUY recommendation with an unchanged PT of EUR 13.00, based on
SOTP and FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32624.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2139092 16.05.2025 CET/CEST