Original-Research: Rubean AG (von NuWays AG): Buy

Original-Research: Rubean AG - from NuWays AG

Classification of NuWays AG to Rubean AG

Company Name: Rubean AG
ISIN: DE0005120802

Reason for the research: Update
Recommendation: Buy
from: 28.02.2024
Target price: 9.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Major cooperation with Commerz Globalpay; chg.

Topic: Yesterday, Rubean announced to have won the Global Payment tender for Germany, which is basically the tender for the recently announced joint venture between Commerzbank and Global Payments (“Commerz Globalpay”). In detail:

Earlier this year, Commerzbank announced to have entered a joint venture with Global Payment in order to offer digital payment services to its SME clients. With yesterday´s corporate news it became clear that Rubean is delivering the PhonePOS solution for the joint venture and Global Payments App “GP tom”. Rubean´s unique PhonePOS solution enable SME clients of Commerzbank to use its phones as payment terminals instead of using third party devices.

Attractive pricing scheme. We expect that the contract with Global Payment has two major components: 1) fixed fee per terminal in use (phone using the Rubean´s payment solution) per month of (eNuW: c. € 1.40-1.50) and 2) a fixed fee per executed transaction (eNuW: € 0.02-0.03). Assuming that PhonePOS will be used by 100k SME clients of Commerzbank until end of FY25 (mind you that Commerzbank is servicing overall c. 600k SME clients), executing an average of 7 transactions per day each, we expect Rubean to generate additional € 1.0m sales in FY24 (eNuW) and € 2.9m additional sales in FY25.

With the third important strategic partnership announcement within a short period of time (i.e. Correos, emerchantpay), Rubean is showing once again very clearly that its leading softPOS product is ready and that the roll-out is in full swing. We hence expect positive newsflow from further new partnerships within FY24 that should further ramp-up sales and EBIT going forward.

As we have already anticipated meaningful cooperations within this year, we adjust our sales estimates only slightly, remaining rather conservative. Still, we expect exponentially growing quarterly figures that should result in slightly increased sales of € 3.0m and an EBIT of € -1.4m for FY24e. Mind you, that further customer wins as well as a dynamic development of existing partnerships could render our estimates as too low.

BUY with a new PT of € 9.00, based on our DCF.

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http://www.more-ir.de/d/29003.pdf
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