Topic: CR Capital released final FY figures, which were slightly better than the preliminary results.

FY sales increased by 13.7% yoy to € 79.4m, slightly below our estimate of € 80.9m. Sales were once again mainly driven by income from investment activities (98% of sales), which strongly benefited from the positive development of the holding companies.  FY EBIT grew disproportionately by 14.8% yoy to € 76.3m, supported by operating leverage and scale effects. On top of that, the company continued to be highly cash generative, as operating CF increased by 17% yoy to € 16.8m, equaling€ 3.70 per share.

Moreover, management proposed a dividend of € 2.50 per share to the AGM (14 July), indicating a 7.9% yield given yesterday’s closing price. Like in previous years, shareholders will have the option to choose between a cash and a scrip dividend.

Going forward, CR Capital looks set to grasp the promising opportunities in the following markets:

(1) Energy transition: Founded in 2021, Solartec designs climate neutral energy supply concepts. Hereby, the company combines conventional PV systems and hydrogen technology to allow for 24/7 energy supply. The completion of the first major project, a 60k sqm Agri-PV plant, is planned for 2023e. In recognition of its sustainable strategic alignment, CR Capital was awarded with an ESG rating of “very good” by imug.

(2) Affordable housing: With its flagship holding Terrabau, CR is hitting a nerve, offering a B2B platform for affordable housing (> € 350k) in the Berlin and Leipzig area. While the segment is already facing a massive demand surplus, the decline in building permits is seen to further aggravate the situation. Against this backdrop, Terrabau looks set to continue its growth path and likewise contribute towards sustainable growth at CR Capital.

(3)  Private Equity: CR’s third portfolio company, CR Opportunities (CRO), is also playing a crucial role, as it provides equity financing for Solartec. Moreover, CRO will soon launch a fund for semi-professional and professional investors and is working on additional PE offerings with the goal of creating attractive investment and retirement options for a broader segment of the population.

Remains a BUY with an unchanged PT of € 52.00 based on DDM.