First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 116.00 to EUR 137.00.

Energiekontor (EKT) has published its 2022 annual report and reported record EBT of €63m, a whopping +40% compared to last year. This is significantly higher than the guided +10% to +20% EBT increase. The main driver was the Power Generation segment, which increased EBT from €1m to €30m due to much higher power prices and higher production (~550 GWh versus ~440 GWh in 2021). The own plant portfolio was expanded from 329 MW to 384 MW (+16% y/y). EKT widened its project pipeline by ca. 1.7 GW to over 10.2 GW (+20 y/y). The dividend proposal of €1.00 implies an 11% rise y/y. 2023 guidance promises further growth: EKT wants to increase 2023 EBT by 10% – 20% y/y. Given 2022 EBT of €63m, this implies 2023 EBT of between €69m and €75m. Energiekontor’s new growth strategy 2023 – 2028 aims at doubling EBT to ca. €120m within five years. We believe that EKT will top this target (FBe 2028 EBT: €128m). We raise our 2023 EBT forecast from €62m to €69m (+11%). An updated sum-of-the-parts valuation yields a new price target of €137 (previously: €116). We confirm our Buy recommendation. Upside: >80%.