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 34.00 price target.

SFC has published its 2023 annual report and confirmed preliminary figures. In 2023, the company showed strong growth (+39% y/y) and significantly improved profitability. Adjusted EBIT more than tripled to €9.7m and the margin widened from 3.7% to 8.2%. SFC reiterated 2024 guidance (sales of €142m – €154m / sales growth of ca. 20% to 30% y/y, and adjusted EBITDA between €17.5m and €22.4m, a plus of between 15% and 47% compared to the 2023 figure). In 2023, SFC broadened its international footprint and its position on the value chain. Given its outstanding competitive position on the direct methanol fuel-cell market and the development of innovative hydrogen fuel-cell-based energy solutions, we expect SFC to continue on its profitable growth trajectory in the coming years. A high net cash position (€43.5m) offers sufficient leeway for financing organic and external growth. We confirm our Buy recommendation at an unchanged €34 price target.