EQS/Original-Research : Coreo AG (von GBC AG): BUY

 
 Original-Research: Coreo AG - von GBC AG 
 
Einstufung von GBC AG zu Coreo AG 
 
Unternehmen: Coreo AG 
ISIN: DE000A0B9VV6 
 
Anlass der Studie: Research Comment 
Empfehlung: BUY 
Kursziel: 2.35 EUR 
Kursziel auf Sicht von: 31.12.2021 
Letzte Rating?nderung: 
Analyst: Cosmin Filker; Marcel Goldmann 
 
Planned financing successfully implemented, high liquidity available for new 
investments, target price of EUR 2.35 and BUY rating confirmed 
 
As announced after the cancellation of the bond issue by Coreo AG, the 
company has successfully concluded a replacement financing. According to the 
latest company announcement, the company has received a loan of EUR 23 
million from a renowned investor and can thus promptly implement the planned 
financing and refinancing measures. These include the repayment of the 
warrant bond with an outstanding volume of EUR 15 million, which has a 
comparatively high interest rate of 10%. With a loan interest rate of 6.75 
%, cost savings can be realised promptly through the redemption of the 
warrant bond. According to our calculations, these should be around EUR 0.50 
in the coming financial year. In connection with the loan, the two 
shareholders Christian Angermayer and the alex sch?tz familienstiftung have 
agreed to strengthen the equity base by at least EUR 5 million in the course 
of a capital increase and thus secure the planned growth. 
 
The remaining volume from the loan of EUR 7 million after the refinancing of 
the warrant bond is to be used for the continuation of the growth strategy 
through property acquisitions. In addition, Coreo AG announced the 
profitable sale of three properties in the Hydra portfolio in the Corporate 
News of 21.12.2020. With the expected transfer of benefits and burdens in 
the first quarter of 2021, the company should report a liquidity inflow of 
between EUR 3 - 4 million. The sale will already have an effect on earnings 
in the current 2020 financial year through the write-up on the sale price. 
Including the inflow of liquidity from the property sale, Coreo AG could 
implement new investments of more than EUR 30 million at an assumed LTV of 
66 %. 
 
Not to be neglected are the still existing extensive financial assets, which 
include, among other things, an investment in MagForce AG. In principle, the 
investment in MagForce AG, which had a valuation of EUR 4.50 million as at 
30 June 2020, is available for disposal and would thus support the financing 
of future property acquisitions. Compared to the balance sheet date, the 
MagForce share has also recorded a significant price increase of over 70%. 
As of today, this would mean an increase in the valuation of approximately 
EUR 3.2 million, which would simultaneously lead to an increase in NAV. 
 
With the purchase of the neighbouring property to the area already acquired 
in September, Coreo AG has around 17,000 square metres for which residential 
building rights are to be created. The reduction of vacancies in the Hydra 
portfolio is also developing according to plan. While the properties in 
Gie?en and Kiel are now let on long-term leases, the flats in Berger Stra?e 
in Frankfurt am Main are about to be let. In Wetzlar, too, all the 
residential units have been let, and rental negotiations for the commercial 
space are well advanced. 
 
In our previous revenue and earnings forecasts (see research study dated 3 
November 2020), we had already assumed the successful conclusion of the 
financing as the basis for the further expansion of the property portfolio. 
Although the new investments we had assumed in the amount of around EUR 25 
million have not yet been made, in our previous estimates we had in any case 
only taken into account the impact of new investments on sales and earnings 
from the coming financial year. With the higher liquidity now available, 
Coreo AG should be in a position to implement property and project 
acquisitions in a timely manner and we therefore maintain our forecasts 
published in the last research study. We will only include the effects from 
the promised strengthening of equity by the two anchor shareholders after 
the capital increase has been completed. 
 
Since our DCF valuation model also remains unchanged, we are maintaining our 
previous price target of EUR2.35. Based on the current price level of EUR 
1.49, we continue to assign a BUY rating. 
 
Die vollst?ndige Analyse k?nnen Sie hier downloaden: 
http://www.more-ir.de/d/21965.pdf 
 
Kontakt f?r R?ckfragen 
J?rg Grunwald 
Vorstand 
GBC AG 
Halderstra?e 27 
86150 Augsburg 
0821 / 241133 0 
[e-mail] 
++++++++++++++++ 
Offenlegung m?glicher Interessenskonflikte nach ? 85 WpHG und Art. 20 MAR 
Beim oben analysierten Unternehmen ist folgender m?glicher 
Interessenkonflikt gegeben: (4,5a,6a,11); Einen Katalog m?glicher 
Interessenkonflikte finden Sie unter: 
http://www.gbc-ag.de/de/Offenlegung.htm +++++++++++++++ 
Date (time) completion: 21.12.20 (12:00 am) Date (time) first distribution: 
21.12.20 (2:00 pm) 
 
=------------------?bermittelt durch die EQS Group AG.------------------- 
 
F?r den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. 
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung 
oder Aufforderung zum Abschluss bestimmter B?rsengesch?fte. 
 
 

(END) Dow Jones Newswires

December 21, 2020 08:01 ET (13:01 GMT)