Topic: Multitude is seen to publish a strong set of Q2 figures with further sequential growth yoy and qoq growth next week. Importantly, we do not see a profit warning pending with Q2 figures. In detail:

• Sales should come in at € 67.2m (20% yoy, 5% qoq), mainly driven by the strong growth of the net loan book (NAR) to € 680m (including c. € 600 loan to customers and c. € 80m attributable to warehouse lending; vs. € 658m in Q1). With € 56.6m ferratum should contribute most (84% of sales, 15% yoy, 5% qoq), followed by CapitalBox with € 8.1m (12% of sales, 45% yoy, 5% qoq) and Wholesale banking with 4% of total sales (€ 2.5m; 150% yoy, 9% qoq).
• Anticipated EBIT of € 14.2m (22% yoy, 22% qoq), should result from the growing topline and lower S&M and personnel as well as lower other operating expenses, all overcompensating for impairments on loans that are seen up yoy at € 26.9m (32% yoy, -5% qoq), mainly caused by the growing loan book. As interest expenses are seen to come in higher at € 9.4m (77% yoy, 8% qoq), caused by 1) the growth of the loan book and 2) the higher avg interest costs that move with a delay of c. 6-18 months (eNuW) to the ECB rate, EBT is seen at mere € 4.8m (-29% yoy, 60% qoq), leaving room for improvements.

Overall, Multitude should report a strong set of Q2 figures with further sequential growth on both top-and bottom line. Still, further meaningful loan book and topline growth paired with ongoing tight cost control resulting in stable other OPEX is necessary to unlock ongoing scale effects resulting in significant EBIT growth for the remainder of the year that is the perquisite to reach the ambitious EBIT guidance of € 67.5m. Despite the fact, that we do not see a profit warning pending, we conservatively expect only € 61.4m EBIT in FY24 as of now, leaving room for improvements.

For a growing, highly profitable, resilient and dividend paying company the stock looks undebatable cheap trading at only 4x PE´25.

BUY with an unchanged € 12 PT, based on our residual income model. Mind you that Multitude remains one of our NuWays Alpha picks for FY24.