First Berlin Equity Research has published a research update on exceet Group SCA (APEX) (ISIN: LU0472835155). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 9.00 to EUR 8.70.
In July, exceet / APEX acquired land in Lubmin that offers optimal conditions for the construction of a large hydrogen production facility (up to 600 MW). This is the company’s second major project after the 100 MW electrolyser project in Rostock-Laage. exceet published its H1 report at the end of September. Compared to the same period last year, the company increased its revenue significantly from €0.2m to €2.3m, but fell short of our estimate of €3.0m. Higher spending on projects under development and business development costs widened the operating loss to €-8.3m from €-4.4m in H1/22. The headcount increased from 48 to 85, and the order book increased 32% to €44.6m during the first nine months of the year. exceet confirmed 2023 guidance (>€15m revenue). As the guidance is based on already contracted revenues, we continue to assume that the company will reach its revenue target, but we have adjusted our cost estimates upwards after the half-year figures. The increased order backlog is a good basis for our 2024E sales growth forecast. An updated DCF model that takes into account the rise in the risk-free interest rate (ten-year German federal bond now yields 2.8%, up from 2.4% at the time of our last publication on 13 July 2023) results in a slightly lower price target of €8.70 (previously: €9.00). We continue to regard exceet / APEX as a very well positioned company in the green hydrogen growth market and confirm our Buy recommendation.