CR Energy released solid H1 figures, showing strongly increasing dividends from the holding companies but also declining investment income. Here are the key takeaways:

H1 investments income declined by 23% yoy to € 53.3m (eNuW: € 55m), mainly due to an increased discount rate, which could not be offset by increasing sales of the holding companies. However, thanks to cost cutting measures bearing fruit, CR Energy was able to sustain its superior margin profile, as EBIT came in at € 52.6m, implying a 98.6% EBIT margin.

Dividends from the holding companies strongly increased by 92% yoy to € 14.7m (eNuW: € 12.5m), which was again driven by the flagship holding Terrabau that contributed € 11.5m. As a result, operating cashflow increased accordingly by 94% yoy € 12.8m, implying CFO per share of € 2.80.

Importantly, CR Energy continues to be one of the major profiteers of the increasing demand for sustainable energy and housing solutions as the holding companies, especially Terrabau and Solartec, are offering smart solutions for high quality and cost-optimized living space. In detail:

In contrast to many industry peers, Terrabau as a general contractor was able to complete and hand over all residential units on schedule, thanks to cost discipline, stable supplier relationships and strict project management. Currently, eight projects with > 500 units in the Berlin and Leipzig area are in the pipeline and set to be completed until 2025e. Notably, the company was able to fix construction costs for the majority, thus securing stable margins going forward. With this, Terrabau looks set to continue its growth path and contribute towards sustainable growth at CR Energy. Solartec designs climate neutral energy supply concepts, combining conventional PV systems and hydrogen technology to allow for 24/7 energy supply. Here, significant synergies are seen to materialize with Terrabau. In recognition of its sustainable strategic alignment, CR Energy was awarded with an ESG rating of “very good” by imug.

On top of this, CR Opportunity, a PE provider for retail investors, looks set to launch its first ELTIF in 2024e with a focus on sustainable real estate and renewables, which should further drive growth.

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