First Berlin – SFC Energy AG Research Update (01/04/2021)

First Berlin Equity Research has published a research update on SFC Energy AG (ISIN: DE0007568578). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 44.00 price target.

SFC Energy has published its 2020 annual report and held a conference call. Final figures confirmed preliminaries. For 2021 SFC is guiding towards sales between €61m and €70m (FBe: €66.8m), underlying EBITDA between €3.5m and €6.0m (FBe: €4.2m) and underlying EBIT between €-0.9m and €1.6m (FBe: €0.4m). 2021 guidance is thus in line with our 2021 forecast. SFC's accelerated medium-term growth plan calls for organic and inorganic expansion to sales of up to €350m to €400m by 2025, as well as a widening of the EBITDA margin to above 15%. The growth plan is based on the extremely dynamic development of global demand for hydrogen and methanol fuel cells in stationary applications. We see SFC as well-positioned to take advantage of the global energy transition towards net zero CO2 emissions. We confirm our Buy rating and the €44 price target.