Original-Research: SYGNIS AG (von GBC AG): BUY

Original-Research: SYGNIS AG - von GBC AG

Einstufung von GBC AG zu SYGNIS AG

Unternehmen: SYGNIS AG

ISIN: DE000A1RFM03

Anlass der Studie: Research Report (Update)

Empfehlung: BUY

Kursziel: 3.75 Euro

Kursziel auf Sicht von: End FY 2016

Letzte Ratingänderung:

Analyst: Cosmin Filker, Felix Gode, CFA

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 EUR0.31m (9M/14:

EUR0.30m) 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 -EUR2.71m

(9M/14: EUR-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 EUR0.36m. Without extraordinary effects,

SYGNIS AG would have achieved near constant development of the EBIT

(adjusted EBIT: -EUR2.35m).

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 EUR0.61m (31/12/14:

EUR3.76m) and will significantly increase following a successful capital

increase. By issuing 3.86m new shares at a subscription price of EUR1.90

per share (7:2 subscription ratio), the company aims to increase its equity

by EUR7.33m. 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 EUR3.75 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.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13409.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,5b,6a,10,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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