First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 110.00 to EUR 103.00.

Abstract
Energiekontor (EKT) has published its annual report and held a conference call. 2024 EBT amounted to €36.2m, in line with recently raised guidance (€33m – €37m) and slightly above to our forecast of €35.5m. The company is guiding towards 2025 EBT of €70m – €90m, which means that EBT will probably more than double y/y. EKT has 38 building permits with a total volume of 1,343 MW on hand (+19% y/y) and won contracts for 192 MW in the German onshore wind tender in February. We estimate the revenue potential of these 192 MW alone at some €380m and expect realisation in 2027E & 2028E. All KPIs signal a strong rise in earnings in 2025E and very robust earnings in 2026E & 2027E. However, the share price has lost more than 30% since the publication of the annual report. This is perhaps due to dissatisfaction regarding the dividend proposal for 2024, which was lowered from €1.20 to €0.50 (payout ratio: 43%, FBe: €0.60). We believe that the dividend for 2025E could more than double to €1.10. Despite the comparatively weak 2024 result, EKT remains very profitable (net margin: 18%). We believe that the current share price is an excellent opportunity for institutional investors to build a position in a company with a rock-solid business model and very strong earnings momentum. The 2026E consensus P/E is at a multi-year low (8x), a level last seen in 2017. This is despite good business prospects for this year, and an outlook for 2026E & 2027E which could hardly be better. Our updated sum-of-the-parts valuation yields a €103 price target (previously: €110). Now is the right time to Buy the stock. Upside ca. 140%.