LION E-Mobility AG
Original-Research: LION E-Mobility AG (von NuWays AG): Buy

Original-Research: LION E-Mobility AG – from NuWays AG

Classification of NuWays AG to LION E-Mobility AG

Company Name: LION E-Mobility AG
ISIN: CH0560888270

Reason for the research: Update
Recommendation: Buy
from: 04.03.2024
Target price: 10.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr

Large order from electric bus manufacturer

Topic: LION E-Mobility received a € 12m order for battery packs from
electric bus manufacturer KARSAN. Its ambitious growth prospects and recent
order momentum should leave room for additional battery pack orders in the
short-term.

In detail, the € 12m battery pack order comprises € 6m in firm orders to be
delivered in FY24 as well as a € 6m floating component to accommodate the
evolving needs of KARSAN and the rapidly expanding market for electric
buses. LION expects the floating component of the order to also be
delivered in FY24.

KARSAN is a Turkish manufacturer of electric buses used for public
transportation that is mainly active in Europe (e.g. ~40% market share in
Luxemburg and Romania and 19% in France) but is also expanding its business
in North America and that is in the midst of entering Japan. According to
its FY24 targets, KARSAN plans to more than double its vehicle output to
1.2-1.3k vehicles compared to FY23. As the company does not have its own
battery pack production, it heavily relies on partners such as LION. We
hence expect further follow-up orders during the foreseeable future.

Newsflow to remain positive. LION is expected to release preliminary FY23
figures on March 21st. As already highlighted during the Q3 earnings call
in December, the company is seen to report € 25m sales in Q4 alone – a
significant sequential step-up (vs. 9M of € 29m). Throughout FY24, LION
should, report further larger order wins in its Mobility and Storage
segments (eNuW). The latter is seen to experience significant tailwinds
from the planned launch of a LFP-based battery pack during the second half
of the year.

After all, valuation remains very attractive. While 2023 should be seen as
transition year, FY24e looks set to be marked by (1) strong sales growth
(eNuW: 44% yoy) thanks to a running production and an increased sales
force, (2) LION turning at least EBITDA breakeven thanks to operating
leverage, (3) the launch of LFP battery packs and (4) further progress on
the LIGHT battery. Still, shares trade at a mere 0.5x EV/sales 2024e.

We hence reiterate BUY with an unchanged € 10.50 PT based on DCF.

You can download the research here:
http://www.more-ir.de/d/29045.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
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Web: www.nuways-ag.com
Email: research@nuways-ag.com
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Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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