Sino : Warburg Research bestätigt Kaufempfehlung – Ziel 56,00 Euro

sino

(CDAX, Financial Services, XTP GR)

RESEARCH

Buy

EUR 56.00

Price

Upside

(EUR 45.80)

EUR 38.60

45.1 %

Value Indicators:	EUR		Warburg ESG Risk Score:	2.7		Description:
			ESG Score (MSCI based):	3.0
DCF:	56.04				Online broker specialized on heavy
			Balance Sheet Score:	5.0
					traders
			Market Liquidity Score:	0.0
Market Snapshot:	EUR m		Shareholders:			Key Figures (WRe):	2022/23e
Market cap:	90.2		Freefloat	64.10 %		Beta:	1.4
No. of shares (m):	2.3		Ingo Hillen	11.00 %		Price / Book:	5.0 x
EV:	69.8		HSBC Trinkaus & Burkhardt	24.90 %		Equity Ratio:	87 %
Freefloat MC:	57.8
Ø Trad. Vol. (30d):	24.56 th

Operating performance improves; More positive news from Trade Republic

Sino reported figures for FY 2022/23 that were in line with our estimates. After initially reporting a loss at net income level of EUR -0.8m in November 2023, this figure was revised to EUR -1m in February 2024 and has now been confirmed by the auditor and the supervisory board. The adjustments were made in the form of a higher BaFin levy and minor valuation adjustments.

• 2022/23 was characterised by a muted trading behaviour of clients (511.5k transactions vs. 849.8k in 2021/22) and the change to Baader Bank as trading partner. Thus, operating revenues declined by -32.9% to EUR 5.4m. As of September 2023, sino had 250 trading customers.
• Sino also reported figures for the first quarter of 2023/24 and encouraging trading KPIs for the first two months of 2024. Operating revenues for the first quarter (September - December 2023) improved by 58.6% to EUR 1.5m. However, net income was still in the red with a loss of EUR -0.2m. Some 132.5k transactions (+9.4% yoy) were handled in Q1 and the number of customers increased to 257.
• However, the trading environment continued to improve in 2024. January transactions were 15.4% higher than the corresponding months in 2023 and February transactions increased by 47.9% to 62.2k, the strongest months since May 2022. The number of customers at the end of February also increased further to 263. Therefore, operating revenues in Q2 should increase sharply qoq and the company should return to profitability.
• Recent news regarding Trade Republic (in which sino still holds 2.3%) has been consistently positive. Demand for the newly introduced credit card is tremendous and according to tracking providers, page visits for Trade Republic have developed very favourably, especially in France. Furthermore, transactions at LS-Exchange, Trade Republic's trading venue, increased by +90% yoy in February and 64% in January. Transactions also show a very positive momentum compared to Q4 2023, indicating significantly higher activity and continued customer growth. Against the backdrop of this positive development, we assume that a current valuation for Trade Republic could be at least EUR 5bn, which was the value at the last equity raising in 2022. As a result, we remove the 20% discount previously applied to the last financing round, which increases the value of the remaining 2.3% stake in Trade Republic to EUR 119.1m.

Assessment: Sino reported a favourable operating performance over the last few months. The company should return to profitability in 2024. However, the larger trigger for the share should be the positive development of Trade Republic. Sino announced its intention to distribute 90% of future earnings from the potential sale of further Trade Republic shares to its shareholders. Considering the value of EUR 119.1m, enriched by sino's operating business and other investments, the current market cap of EUR 90m appears too cheap. Therefore, we reiterate our Buy rating with an increased PT of EUR 56.

					FY End: 30.9.	CAGR	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
					in EUR m	(21/22-24/25e)
					Sales	0.8 %	4.7	8.5	11.1	7.6	5.4	7.0	7.8
					Change Sales yoy		-11.1 %	82.0 %	30.3 %	-31.2 %	-29.3 %	30.1 %	11.4 %
					Gross profit margin		95.8 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
					EBITDA	74.8 %	-3.1	2.4	-2.0	0.3	-1.4	0.9	1.7
					Margin		-66.6 %	28.4 %	-18.0 %	4.1 %	-25.7 %	12.1 %	21.4 %
					EBIT	205.2 %	-3.5	2.1	-2.2	0.0	-1.8	0.3	1.0
					Margin		-74.3 %	25.0 %	-20.2 %	0.5 %	-33.7 %	4.1 %	13.4 %
					Net income	0.2 %	-1.6	9.5	139.4	0.9	-0.8	0.4	0.9
					EPS	0.8 %		4.07	59.65	0.40	-0.33	0.19	0.41
					-0.69
					EPS adj.	0.8 %	-0.69	4.07	59.65	0.40	-0.33	0.19	0.41
					DPS	-	0.64	2.92	0.00	53.00	0.00	0.00	0.00
					Dividend Yield		15.0 %	33.7 %	n.a.	69.8 %	n.a.	n.a.	n.a.
	Rel. Performance vs CDAX:
			FCFPS		-1.01	1.43	-2.27	2.26	-0.19	0.38	0.63
	1 month:	-2.7 %
			FCF / Market cap		-23.8 %	16.5 %	-4.1 %	3.0 %	-0.5 %	1.0 %	1.6 %
	6 months:	24.7 %
		EV / Sales		2.1 x	2.4 x	n.a.	20.7 x	13.1 x	10.0 x	8.8 x
	Year to date:	26.4 %
			EV / EBITDA		n.a.	8.4 x	n.a.	503.6 x	n.a.	82.2 x	40.9 x
	Trailing 12 months:				EV / EBIT		n.a.	9.5 x	n.a.	n.a.	n.a.	240.8 x	65.4 x
	8.9 %
					P / E		n.a.	2.1 x	0.9 x	189.8 x	n.a.	203.2 x	94.1 x
	Company events:				P / E adj.		n.a.	2.1 x	0.9 x	189.8 x	n.a.	203.2 x	94.1 x
	28.03.24	FY 2022/23			FCF Potential Yield		-22.6 %	8.4 %	39.9 %	0.2 %	-1.5 %	0.9 %	1.8 %
	AGM			Net Debt		0.0	0.0	-143.1	-20.0	-19.5	-20.4	-21.9
	07.05.24
				ROCE (NOPAT)		n.a.	19.1 %	n.a.	1.6 %	n.a.	n.a.	n.a.
	28.06.24	Q2
	30.08.24	Q3			Guidance:	Net income between EUR -0.2m and -1.2m

Analyst

Marius Fuhrberg	COM M ENT

[e-mail] [phone]

Published 20.03.2024 08:15

1

sino

RESEARCH

Sales development	Valuation contributors	EBIT development
in EUR m	in %	in EUR m

Source: Warburg Research	Source: Warburg Research	Source: Warburg Research

Company Background

• sino is a high end online brokerage company, specializing on providing services to heavy traders.
• The trading software tool MX-PRO is especially designed to fulfill the needs of heavy traders providing extraordinary high stability.
• In addition to common product offerings, such as stocks, bonds, futures, derivatives, ETFs, funds and forex, sino also grants access to IPOs and the ability to short-sale securities.
• The very experienced management team is actively contributing to the development of the industry with investments in the fintech startups Trade Republic and Quinn Technologies.

Competitive Quality

• High end trading platform provides extended scale of services through customizable software tools with access to a greater variety of financial products than usual brokerage businesses.
• sino operates in the niche market of heavy traders with few competitors and considerable entry barriers due to the loyalty of the customer base.
• The strong software and trading partners, Baader Bank and tick Trading Software, support sino through banking and operational frameworks.
• With the outsourcing of the IT and technical settlements to third-parties, sino is able to keep a lean corporate structure.
• Attractive shareholdings in Trade Republic, tick Trading Software and Quinn Technologies add significant value.

EBT development	Net income development
in EUR m	in EUR m

Source: Warburg Research	Source: Warburg Research

COM M ENT

Published 20.03.2024

2

sino

RESEARCH

DCF model

	Detailed forecast period					Transitional period					Term. Value
Figures in EUR m	22/23e	23/24e	24/25e	25/26e	26/27e	27/28e	28/29e	29/30e	30/31e	31/32e	32/33e	33/34e	34/35e
Sales	5.4	7.0	7.8	8.5	9.2	9.8	10.4	10.9	11.4	11.7	11.9	12.1	12.3
Sales change	-29.3 %	30.1 %	11.4 %	9.0 %	8.0 %	7.0 %	6.0 %	5.0 %	4.0 %	3.0 %	2.0 %	1.5 %	1.5 %	1.5 %
EBIT	-1.8	0.3	1.0	1.3	1.4	1.5	1.6	1.6	1.7	1.8	1.8	1.8	1.8
EBIT-margin	-33.7 %	4.1 %	13.4 %	15.0 %	15.0 %	15.0 %	15.0 %	15.0 % 15.0 % 15.0 %	15.0 %	15.0 %	15.0 %
Tax rate (EBT)	30.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %	32.0 %
NOPAT	-1.3	0.2	0.7	0.9	0.9	1.0	1.1	1.1	1.2	1.2	1.2	1.2	1.3
Depreciation	0.4	0.6	0.6	0.3	0.3	0.2	0.1	0.1	0.1	0.1	0.1	0.1	0.1
in % of Sales	8.0 %	8.0 %	8.0 %	4.0 %	3.0 %	2.0 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %
Changes in provisions	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Change in Liquidity from
- Working Capital	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
- Capex	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Capex in % of Sales	2.0 %	1.5 %	1.4 %	1.5 %	1.5 %	1.5 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %	1.0 %
- Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Free Cash Flow (WACC	-1.0	0.7	1.2	1.1	1.1	1.1	1.1	1.1	1.2	1.2	1.2	1.2	1.3	1
Model)
PV of FCF	-1.0	0.6	1.0	0.8	0.7	0.6	0.6	0.6	0.5	0.5	0.5	0.4	0.4	4
share of PVs
	6.01 %						52.50 %					41.49 %

Model parameter

Derivation of WACC:			Derivation of Beta:
Debt ratio	0.00 %		Financial Strength	1.20
Cost of debt (after tax)	4.2 %		Liquidity (share)	1.50
Market return	8.25 %		Cyclicality	1.40
Risk free rate	2.75 %		Transparency	1.40
			Others	1.40
WACC	10.34 %		Beta	1.38

Valuation (m)

Present values 2034/35e	6
Terminal Value	4
Financial liabilities	0
Pension liabilities	0
Hybrid capital	0
Minority interest	0
Market val. of investments	120
Liquidity	1		No. of shares (m)	2.3
Equity Value	131		Value per share (EUR)	56.04

Sensitivity Value per Share (EUR)

		Terminal Growth								Delta EBIT-margin
Beta	WACC	0.75 % 1.00 % 1.25 %	1.50 % 1.75 % 2.00 %	2.25 %	Beta	WACC	-1.5 pp	-1.0 pp	-0.5 pp	+0.0 pp	+0.5 pp	+1.0 pp	+1.5 pp
1.56	11.3 %	55.41	55.44	55.48	55.52	55.56	55.60	55.64	1.56	11.3 %	55.07	55.22	55.37	55.52	55.66	55.81	55.96
1.47	10.8 %	55.64	55.68	55.72	55.76	55.81	55.86	55.91	1.47	10.8 %	55.29	55.45	55.61	55.76	55.92	56.08	56.23
1.43	10.6 %	55.76	55.80	55.85	55.90	55.95	56.00	56.06	1.43	10.6 %	55.41	55.57	55.73	55.90	56.06	56.22	56.38
1.38	10.3 %	55.89	55.93	55.98	56.04	56.09	56.15	56.21	1.38	10.3 %	55.54	55.71	55.87	56.04	56.20	56.37	56.53
1.33	10.1 %	56.02	56.08	56.13	56.19	56.25	56.31	56.38	1.33	10.1 %	55.67	55.84	56.01	56.19	56.36	56.53	56.70
1.29	9.8 %	56.17	56.22	56.28	56.34	56.41	56.48	56.55	1.29	9.8 %	55.82	55.99	56.17	56.34	56.52	56.69	56.87
1.20	9.3 %	56.48	56.55	56.62	56.69	56.77	56.85	56.94	1.20	9.3 %	56.13	56.32	56.50	56.69	56.88	57.06	57.25

• We expect only marginal customer gains in the short run and assume a rather flattish development thereafter
• The remaining stakes in Trade Republic and tick TS AG are reflected in market value of investments

COM M ENT

Published 20.03.2024

3

sino

RESEARCH

Valuation

	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Price / Book	2.2 x	1.2 x	0.9 x	9.4 x	5.0 x	4.9 x	4.7 x
Book value per share ex intangibles	1.72	6.83	63.57	7.83	7.50	7.60	8.00
EV / Sales	2.1 x	2.4 x	n.a.	20.7 x	13.1 x	10.0 x	8.8 x
EV / EBITDA	n.a.	8.4 x	n.a.	503.6 x	n.a.	82.2 x	40.9 x
EV / EBIT	n.a.	9.5 x	n.a.	n.a.	n.a.	240.8 x	65.4 x
EV / EBIT adj.*	n.a.	9.5 x	n.a.	n.a.	n.a.	240.8 x	65.4 x
P / FCF	n.a.	6.1 x	n.a.	33.6 x	n.a.	101.5 x	61.5 x
P / E	n.a.	2.1 x	0.9 x	189.8 x	n.a.	203.2 x	94.1 x
P / E adj.*	n.a.	2.1 x	0.9 x	189.8 x	n.a.	203.2 x	94.1 x
Dividend Yield	15.0 %	33.7 %	n.a.	69.8 %	n.a.	n.a.	n.a.
FCF Potential Yield (on market EV)	-22.6 %	8.4 %	39.9 %	0.2 %	-1.5 %	0.9 %	1.8 %

*Adjustments made for: -

COM M ENT

Published 20.03.2024

4

sino

RESEARCH

Consolidated profit & loss

In EUR m	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Sales	4.7	8.5	11.1	7.6	5.4	7.0	7.8
Change Sales yoy	-11.1 %	82.0 %	30.3 %	-31.2 %	-29.3 %	30.1 %	11.4 %
Increase / decrease in inventory	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Own work capitalised	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Sales	4.7	8.5	11.1	7.6	5.4	7.0	7.8
Material expenses	0.2	0.0	0.0	0.0	0.0	0.0	0.0
Gross profit	4.5	8.5	11.1	7.6	5.4	7.0	7.8
Gross profit margin	95.8 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
Personnel expenses	2.9	2.7	3.4	2.8	3.0	3.2	3.1
Other operating income	0.5	0.3	0.5	0.5	0.5	0.5	0.5
Other operating expenses	5.1	3.7	10.2	5.0	4.3	3.5	3.5
Unfrequent items	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EBITDA	-3.1	2.4	-2.0	0.3	-1.4	0.9	1.7
Margin	-66.6 %	28.4 %	-18.0 %	4.1 %	-25.7 %	12.1 %	21.4 %
Depreciation of fixed assets	0.4	0.3	0.2	0.3	0.4	0.6	0.6
EBITA	-3.5	2.1	-2.2	0.0	-1.8	0.3	1.0
Amortisation of intangible assets	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Goodwill amortisation	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EBIT	-3.5	2.1	-2.2	0.0	-1.8	0.3	1.0
Margin	-74.3 %	25.0 %	-20.2 %	0.5 %	-33.7 %	4.1 %	13.4 %
EBIT adj.	-3.5	2.1	-2.2	0.0	-1.8	0.3	1.0
Interest income	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Interest expenses	0.0	0.0	0.0	0.6	0.0	0.0	0.0
Other financial income (loss)	1.2	8.1	145.3	1.5	0.8	0.5	0.5
EBT	-2.5	10.2	143.0	0.9	-1.1	0.6	1.4
Margin	-53.1 %	120.5 %	1291.3 %	12.3 %	-20.3 %	9.1 %	17.9 %
Total taxes	-0.9	0.7	3.6	0.0	-0.3	0.2	0.4
Net income from continuing operations	-1.6	9.5	139.4	0.9	-0.8	0.4	0.9
Income from discontinued operations (net of tax)	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net income before minorities	-1.6	9.5	139.4	0.9	-0.8	0.4	0.9
Minority interest	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net income	-1.6	9.5	139.4	0.9	-0.8	0.4	0.9
Margin	-34.7 %	112.0 %	1258.9 %	12.4 %	-14.2 %	6.2 %	12.2 %
Number of shares, average	2.3	2.3	2.3	2.3	2.3	2.3	2.3
EPS	-0.69	4.07	59.65	0.40	-0.33	0.19	0.41
EPS adj.	-0.69	4.07	59.65	0.40	-0.33	0.19	0.41
*Adjustments made for:
Guidance: Net income between EUR -0.2m and -1.2m

Financial Ratios

	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Total Operating Costs / Sales	166.6 %	71.6 %	118.0 %	95.9 %	125.7 %	87.9 %	78.6 %
Operating Leverage	-9.8 x	n.a.	n.a.	n.a.	n.a.	n.a.	22.8 x
EBITDA / Interest expenses	n.m.	490.4 x	n.m.	0.6 x	n.a.	n.a.	n.a.
Tax rate (EBT)	34.7 %	7.1 %	2.5 %	-0.5 %	30.0 %	32.0 %	32.0 %
Dividend Payout Ratio	n.m.	71.7 %	0.0 %	13136.7 %	0.0 %	0.0 %	0.0 %
Sales per Employee	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.

Sales, EBITDA	Operating Performance	Performance per Share
in EUR m	in %

Source: Warburg Research	Source: Warburg Research	Source: Warburg Research

COM M ENT

Published 20.03.2024

5

sino

RESEARCH

Consolidated balance sheet

In EUR m	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Assets
Goodwill and other intangible assets	0.5	0.3	0.3	0.6	0.6	0.6	0.6
thereof other intangible assets	0.5	0.3	0.3	0.6	0.6	0.6	0.6
thereof Goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Property, plant and equipment	0.3	0.2	0.4	0.4	0.0	-0.4	-0.9
Financial assets	2.5	9.4	5.6	0.5	0.4	0.4	0.3
Other long-term assets	0.3	1.3	0.0	0.0	0.0	0.0	0.0
Fixed assets	3.6	11.2	6.2	1.5	1.1	0.6	0.1
Inventories	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Accounts receivable	1.9	7.7	4.2	0.0	0.0	0.0	0.0
Liquid assets	0.0	0.0	143.1	20.0	19.5	20.4	21.9
Other short-term assets	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Current assets	2.0	7.9	147.4	20.1	19.6	20.5	22.0
Total Assets	5.6	19.1	153.6	21.6	20.8	21.1	22.0
Liabilities and shareholders' equity
Subscribed capital	2.3	2.3	2.3	2.3	2.3	2.3	2.3
Capital reserve	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Retained earnings	0.2	1.4	1.4	1.4	0.6	1.0	2.0
Other equity components	1.9	12.5	145.1	15.2	15.2	15.0	15.0
Shareholders' equity	4.5	16.3	148.9	18.9	18.2	18.4	19.4
Minority interest	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total equity	4.5	16.3	148.9	18.9	18.2	18.4	19.4
Provisions	0.6	1.5	4.3	1.8	1.8	1.8	1.8
thereof provisions for pensions and similar obligations	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Financial liabilities (total)	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Short-term financial liabilities	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Accounts payable	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Other liabilities	0.5	1.3	0.5	0.8	0.8	0.8	0.8
Liabilities	1.1	2.8	4.7	2.7	2.7	2.7	2.7
Total liabilities and shareholders' equity	5.6	19.1	153.6	21.6	20.8	21.1	22.0

Financial Ratios

	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Efficiency of Capital Employment
Operating Assets Turnover	2.1 x	1.1 x	2.4 x	21.2 x	112.7 x	-17.2 x	-8.4 x
Capital Employed Turnover	1.0 x	0.5 x	1.9 x	-7.5 x	-4.0 x	-3.5 x	-3.1 x
ROA	-45.2 %	85.0 %	2240.7 %	62.5 %	-67.5 %	69.2 %	1556.0 %
Return on Capital
ROCE (NOPAT)	n.a.	19.1 %	n.a.	1.6 %	n.a.	n.a.	n.a.
ROE	-28.7 %	91.8 %	168.8 %	1.1 %	-4.1 %	2.4 %	5.0 %
Adj. ROE	-28.7 %	91.8 %	168.8 %	1.1 %	-4.1 %	2.4 %	5.0 %
Balance sheet quality
Net Debt	0.0	0.0	-143.1	-20.0	-19.5	-20.4	-21.9
Net Financial Debt	0.0	0.0	-143.1	-20.0	-19.5	-20.4	-21.9
Net Gearing	-0.2 %	-0.1 %	-96.1 %	-105.4 %	-107.3 %	-110.8 %	-112.9 %
Net Fin. Debt / EBITDA	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Book Value / Share	1.9	7.0	63.7	8.1	7.8	7.9	8.3
Book value per share ex intangibles	1.7	6.8	63.6	7.8	7.5	7.6	8.0

ROCE Development	Net debt	Book Value per Share
	in EUR m	in EUR

Source: Warburg Research	Source: Warburg Research	Source: Warburg Research

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Consolidated cash flow statement

In EUR m	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Net income	-1.6	9.5	139.4	0.9	-0.8	0.4	0.9
Depreciation of fixed assets	0.5	0.3	0.2	0.3	0.4	0.6	0.6
Amortisation of goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Amortisation of intangible assets	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Increase/decrease in long-term provisions	0.2	0.6	0.0	0.0	0.0	0.0	0.0
Other non-cash income and expenses	-1.7	0.0	-140.8	0.0	0.0	0.0	0.0
Cash Flow before NWC change	-2.7	10.4	-1.1	1.2	-0.3	1.0	1.6
Increase / decrease in inventory	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Increase / decrease in accounts receivable	0.4	-0.1	-2.8	4.1	0.0	0.0	0.0
Increase / decrease in accounts payable	0.4	0.0	0.0	0.0	0.0	0.0	0.0
Increase / decrease in other working capital positions	-0.1	-6.9	-1.2	0.0	0.0	0.0	0.0
Increase / decrease in working capital (total)	0.7	-6.9	-4.0	4.2	0.0	0.0	0.0
Net cash provided by operating activities [1]	-2.0	3.5	-5.2	5.4	-0.3	1.0	1.6
Investments in intangible assets	-0.3	0.0	0.0	0.0	0.0	0.0	0.0
Investments in property, plant and equipment	-0.1	-0.1	-0.1	-0.1	-0.1	-0.1	-0.1
Payments for acquisitions	0.0	0.1	0.0	0.0	0.0	0.0	0.0
Financial investments	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Income from asset disposals	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net cash provided by investing activities [2]	-0.4	-0.1	-0.1	-0.1	-0.1	-0.1	-0.1
Change in financial liabilities	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Dividends paid	0.0	-2.1	0.0	-123.9	0.0	0.0	0.0
Purchase of own shares	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Capital measures	2.5	0.0	0.0	0.0	0.0	0.0	0.0
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net cash provided by financing activities [3]	2.5	-2.1	0.0	-123.9	0.0	0.0	0.0
Change in liquid funds [1]+[2]+[3]	0.1	1.4	-5.3	-118.6	-0.5	0.9	1.5
Effects of exchange-rate changes on cash	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Cash and cash equivalent at end of period	0.1	2.0	-5.3	-118.6	-0.4	0.4	1.9

Financial Ratios

	2018/19	2019/20	2020/21	2021/22	2022/23e	2023/24e	2024/25e
Cash Flow
FCF	-2.4	3.3	-5.3	5.3	-0.5	0.9	1.5
Free Cash Flow / Sales	-50.8 %	39.2 %	-47.8 %	69.4 %	-8.4 %	12.7 %	18.8 %
Free Cash Flow Potential	-2.2	1.7	-5.6	0.3	-1.1	0.6	1.2
Free Cash Flow / Net Profit	146.3 %	35.0 %	-3.8 %	560.7 %	59.3 %	204.3 %	154.6 %
Interest Received / Avg. Cash	0.5 %	33.3 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Interest Paid / Avg. Debt	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Management of Funds
Investment ratio	8.6 %	1.2 %	1.0 %	1.4 %	2.0 %	1.5 %	1.4 %
Maint. Capex / Sales	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Capex / Dep	111.6 %	36.8 %	43.4 %	38.4 %	24.6 %	18.9 %	17.0 %
Avg. Working Capital / Sales	77.8 %	56.5 %	53.5 %	27.2 %	-0.1 %	0.0 %	0.0 %
Trade Debtors / Trade Creditors	103903.5 %	22554.0 %	n.a.	61.2 %	n.a.	n.a.	n.a.
Inventory Turnover	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Receivables collection period (days)	149	332	137	1	0	0	0
Payables payment period (days)	3	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Cash conversion cycle (Days)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.

CAPEX and Cash Flow	Free Cash Flow Generation	Working Capital
in EUR m

Source: Warburg Research	Source: Warburg Research	Source: Warburg Research

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LEGAL DISCLAIMER

This research report ("investment recommendation") was prepared by the Warburg Research GmbH, a fully owned subsidiary of the M.M.Warburg & CO (AG & Co.) KGaA and is passed on by the M.M.Warburg & CO (AG & Co.) KGaA. It is intended solely for the recipient and may not be passed on to another company without their prior consent, regardless of whether the company is part of the same corporation or not. It contains selected information and does not purport to be complete. The investment recommendation is based on publicly available information and data ("information") believed to be accurate and complete. Warburg Research GmbH neither examines the information for accuracy and completeness, nor guarantees its accuracy and completeness. Possible errors or incompleteness of the information do not constitute grounds for liability of M.M.Warburg & CO (AG & Co.) KGaA or Warburg Research GmbH for damages of any kind whatsoever, and M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH are not liable for indirect and/or direct and/or consequential damages. In particular, neither M.M.Warburg & CO (AG & Co.) KGaA nor Warburg Research GmbH are liable for the statements, plans or other details contained in these investment recommendations concerning the examined companies, their affiliated companies, strategies, economic situations, market and competitive situations, regulatory environment, etc. Although due care has been taken in compiling this investment recommendation, it cannot be excluded that it is incomplete or contains errors. M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH, their shareholders and employees are not liable for the accuracy and completeness of the statements, estimations and the conclusions derived from the information contained in this investment recommendation. Provided a investment recommendation is being transmitted in connection with an existing contractual relationship, i.e. financial advisory or similar services, the liability of M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH shall be restricted to gross negligence and wilful misconduct. In case of failure in essential tasks, M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH are liable for normal negligence. In any case, the liability of M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH is limited to typical, expectable damages. This investment recommendation does not constitute an offer or a solicitation of an offer for the purchase or sale of any security. Partners, directors or employees of M.M.Warburg & CO (AG & Co.) KGaA, Warburg Research GmbH or affiliated companies may serve in a position of responsibility, i.e. on the board of directors of companies mentioned in the report. Opinions expressed in this investment recommendation are subject to change without notice. The views expressed in this research report accurately reflect the research analyst's personal views about the subject securities and issuers. Unless otherwise specified in the research report, no part of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the research report. All rights reserved.

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The valuation underlying the investment recommendation for the company analysed here is based on generally accepted and widely used methods of fundamental analysis, such as e.g. DCF Model, Free Cash Flow Value Potential, NAV, Peer Group Comparison or Sum of the Parts Model (see also http://www.mmwarburg.de/disclaimer/disclaimer.htm#Valuation). The result of this fundamental valuation is modified to take into consideration the analyst's assessment as regards the expected development of investor sentiment and its impact on the share price.

Independent of the applied valuation methods, there is the risk that the price target will not be met, for instance because of unforeseen changes in demand for the company's products, changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rate etc. For investments in foreign markets and instruments there are further risks, generally based on exchange rate changes or changes in political and social conditions.

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SOURCES

All data and consensus estimates have been obtained from FactSet except where stated otherwise.

The Warburg ESG Risk Score is based on information © 2020 MSCI ESG Research LLC. Reproduced by permission. Although Warburg Research's information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the "ESG Parties"), obtain information (the "Information") from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. The Information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for, or a component, of any financial instruments or products indices. Further, none of the Information can in and of itself be used to determine which securities to buy or sell or when to buy or sell them. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damage (including lost profits) even if notified of the possibility.

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Additional information for clients in the United States

1. This research report (the "Report") is a product of Warburg Research GmbH, Germany, a fully owned subsidiary of M.M.Warburg & CO (AG & Co.)

KGaA, Germany (in the following collectively "Warburg"). Warburg is the employer of the research analyst(s), who have prepared the Report. The research analyst(s) reside outside the United States and are not associated persons of any U.S. regulated broker-dealer and therefore are not subject to the supervision of any U.S. regulated broker-dealer.

1. The Report is provided in the United States for distribution solely to "major U.S. institutional investors" under Rule 15a-6 of the U.S. Securities Exchange Act of 1934 by CIC.
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4. Any person who is not a Major U.S. Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein.

Reference in accordance with section 85 of the German Securities Trading Act (WpHG) and Art. 20 MAR regarding possible conflicts of interest with companies analysed:

-1-

-2-

-3-

-4-

-5-

-6a-

-6b-

-6c-

-7-

Warburg Research, or an affiliated company, or an employee of one of these companies responsible for the compilation of the research, hold a share of more than 5% of the equity capital of the analysed company.

Warburg Research, or an affiliated company, within the last twelve months participated in the management of a consortium for an issue in the course of a public offering of such financial instruments, which are, or the issuer of which is, the subject of the investment recommendation.

Companies affiliated with Warburg Research manage financial instruments, which are, or the issuers of which are, subject of the investment recommendation, in a market based on the provision of buy or sell contracts.

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Warburg Research, or an affiliated company, holds a net long position of more than 0.5% of the total issued share capital of the analysed company.

Warburg Research, or an affiliated company, holds a net short position of more than 0.5% of the total issued share capital of the analysed company.

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The company preparing the analysis as well as its affiliated companies and employees have other important interests in relation to the analysed company, such as, for example, the exercising of mandates at analysed companies.

Company	Disclosure	Link to the historical price targets and rating changes (last 12 months)
sino	5	https://www.mmwarburg.com/disclaimer/disclaimer_en/DE0005765507.htm

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INVESTMENT RECOMMENDATION

Investment recommendation: expected direction of the share price development of the financial instrument up to the given price targetin the opinion of the analyst who covers this financial instrument.

-B-	Buy:	The price of the analysed financial instrument is expected to rise over the next 12 months.
-H-	Hold:	The price of the analysed financial instrument is expected to remain mostly flat over the next 12 months.
-S-	Sell:	The price of the analysed financial instrument is expected to fall over the next 12 months.
"-"	Rating suspended:	The available information currently does not permit an evaluation of the company.

WARBURG RESEARCH GMBH - ANALYSED RESEARCH UNIVERSE BY RATING
Rating	Number of stocks	% of Universe
Buy	148	70
Hold	47	22
Sell	8	4
Rating suspended	7	3
Total	210	100

WARBURG RESEARCH GMBH - ANALYSED RESEARCH UNIVERSE BY RATING …

… taking into account only those companies which were provided with major investment services in the last twelve months.

Rating	Number of stocks	% of Universe
Buy	50	85
Hold	6	10
Sell	0	0
Rating suspended	3	5
Total	59	100

PRICE AND RATING HISTORY SINO AS OF 20.03.2024

Markings in the chart show rating changes by Warburg Research GmbH in the last 12 months. Every marking details the date and closing price on the day of the rating change.

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