First Berlin – PNE AG Research Update (12/05/2021)

First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and maintained his EUR 7.70 price target.

Abstract
PNE has reported Q1 figures and held a conference call. Total output almost doubled y/y to €49m thanks to high construction activity. Weak wind conditions resulted in much lower Electricity Generation segment EBITDA. For this reason, group EBITDA was slightly below the prior year level (€6.3m vs. €6.4m in Q1/20, FBe: €6.9m). Higher depreciation led to EBIT falling 52% y/y to €1.1m (FBe: €1.35m). The net result came in at €1.1m (Q1/20: €0.3m, FBe: €-1.3m) due to a much better financial result (positive income from swaps of €2.3m). Management confirmed 2021 EBITDA guidance of €24-32m. The weak wind conditions in Q1 overshadow good progress in own plant portfolio expansion (+17 MW to 152 MW), the excellent service segment development (segment EBIT: €0.9m versus €0.3m in Q1/20), and strong construction activity. We stick to our forecasts and reiterate our €7.70 price target and Add rating.