First Berlin – Enapter AG Research Update (27/04/2021)

First Berlin Equity Research has published a research update on Enapter AG (ISIN: DE000A255G02). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and decreased the price target from EUR 41.70 to EUR 26.00.

Enapter has published its first annual report since its stock market listing last year. Despite the pandemic, the company more than doubled its sales in 2020. EBIT was better than expected (€-3.5m vs FBe: €-5.4m) due to capitalised own work. In the past six months, Enapter has laid the foundation for the start of mass production of standardised electrolysers. A first capital increase (€6m) was successfully placed in November, and another (€18m) in March. In addition, Enapter has chosen a suitable location (Saerbeck near Münster in Germany) for the mass production facility, which will have a capacity of 100,000 units p.a. Construction of the facility starts this year and we expect it to deliver its first electrolysers in 2023. At the same time, Enapter is significantly expanding its production in Italy. Thanks to very high demand and the increase in Italian production capacity, we believe that sales guidance of €9.3m for 2021 is realistic and confirm our sales forecast. We continue to value the company on the basis of a peer group comparison and a DCF model, and weight both at 50%. Due to the significantly lower peer group EV/sales multiple, our valuation yields a lower target price of €26.00 (previously: €41.70). We confirm our Add recommendation.