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Original-Research: MLP SE - from NuWays AG

Classification of NuWays AG to MLP SE

Company Name: MLP SE

ISIN: DE0006569908

Reason for the research: Update

Recommendation: Kaufen

from: 02.05.2024

Target price: EUR 12.00

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Henry Wendisch

RS Feedback: attractive value for money

On Monday, we hosted a roadshow with CEO Dr. Schroeder-Wildberg, here are

our takeaways:

Growth in Wealth Management: The overall growth in wealth across MLP's ma

affluent, often highly

educated client base should lead to higher demand for wealth management

consultancy. This growth in wealth should stem from (1) the rise of the

customers' income over their expected life cycle, (2) a wave of

inheritances to come in the next 5-10 years in Germany, which should be

over-proportionate at MLP's client base, given their academic background

and (3) the growing need of MLP clients, whose life insurance expires over

the next two years far (EUR 3bn pay-out), to invest.

Demographic change in Germany leads to ever increasing need to provide for

old-age outside of the crippling state pension. Thus, private and corporate

pension schemes experience a growing demand, especially from young people.

This is MLP's heritage business and continues to be well served by MLP'

consultants.

High sales quality: With 68% of revenues being recurring, MLP's sale

quality has improved substantially over the last years (30% in 2005).

Moreover, MLP also does not rely on one revenue pillar anymore, but show

multiple, negatively correlated revenue streams (see p. 2)

Light at the end of the real-estate tunnel: In the last 3 years, MLP's real

estate business experienced a perfect storm, first with the COVID related

postponements of projects (development) and secondly with the quick

interest rate hike leading to a near standstill in brokerage and

development. Now, the trough should have been reached and management see

light at the end of the tunnel, as the market seems to be have gotten used

to current interest rates.

M&A war chest filled: Out of the EUR 190m net cash position, EUR 100m can be

used for acquisitions. However, current prices are still to high in order

to acquire value-accretive targets for the industrial broker segment. Thus,

MLP stays is ready and open for acquisitons should the opportunity arise.

The impressions given by management underpin our positive view. At current

valuation, the stock offers an attractive value for money proposition. BUY

with unchanged PT of EUR 12.00, based on FCFY'24e.

You can download the research here:

http://www.more-ir.de/d/29581.pdf

For additional information visit our website

www.nuways-ag.com/research.

Contact for question

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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