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Original-Research: LAIQON AG - from NuWays AG

Classification of NuWays AG to LAIQON AG

Company Name: LAIQON AG
ISIN: DE000A12UP29

Reason for the research: Long Note
Recommendation: Buy
from: 28.02.2024
Target price: 10.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Game changing cooperation with Union Investment; chg

Recently, LAIQON has announced to have closed the game changing cooperation
with Union Investment. With that, LAIQON provided a new promising guidance
for its subsidiary LAIC, mainly reflecting the potential of the new
cooperation. Further, LAIQON announced a capital raise on the level of LAIC
and published FY23 prelims that came in rather weak. In detail:

Cooperation with Union is heralding a new era. Together Union and LAIQON
will launch new type of fund-based investment product for wealthy
Volksbanken and Raiffeisenbanken (VR) customers in Q4Ž24. The core of the
joint product is an individual fund asset management (iFVV) that is
providing an individually tailored portfolio, based on dozens of
AI-generated decision parameters of the WealthTech LAIC considering both -
classic and sustainable (ESG-compliant) investments constraints. While
LAIQON is providing the technology and the reporting via its wealth tech
LAIC (DAP 4.0) as well as a fully digital onboarding, Union Investment is
providing the distribution channels and the sales power within VR
ecosystem. The VR banks sell the product to customers by advising and
onboarding them. The joint goal is to attract new customers for individual
fund- and AI-based wealth management.

New promising guidance for LAIC. While the management expects AuMŽs of LAIC
to increase by EUR 5-6bn until FY28e to EUR 5.5-6.5bn, mainly driven by the new
cooperation with Union, we are slightly more conservative expecting AuMŽs
to increase to only EUR 4.5bn AuM.

Financing secured. In order to finance the initial costs of the cooperation
(eNuW: c. EUR 3m), LAIQON plans to raise up to EUR 6.8m, partially via emission
of new "LAIC token 24", partially via sale of existing token at a valuation
of EUR 65m.

Weak FY23 prelims of EUR 30.7m sales (eNuW: EUR 33.4m) and EUR -4.8m EBITDA (vs
eNuW: EUR -1.6m) reflecting the frustrating situation on the capital markets
in FY23.

In this piece, we take a closer look at 1) the Digital Asset segment and
the cooperation with Union Investment, 2) the Asset Management and 3) the
Wealth Management.

As we consider the cooperation as a game changer for LAIQON, we reiterate
BUY with a new PT of EUR 10.00, based on DCF.

You can download the research here:
http://www.more-ir.de/d/28997.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
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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