Original-Research: MagForce AG (von GBC AG): BUY

Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG

ISIN: DE000A0HGQF5

Anlass der Studie: Research Note

Empfehlung: BUY

Kursziel: 14.30 Euro

Kursziel auf Sicht von: end FY2016

Letzte Ratingänderung: -

Analyst: Cosmin Filker, Felix Gode

* Business development in financial year 2014 in line with our expectations

For MagForce AG, financial year 2014 was in line with our expectations in

terms of operating figures. Due to the lack of marketing revenues, a

negative earnings situation, with an EBIT of EUR-1.28 million (previous year:

EUR-1.58 million), prevails as forecast. The slight EBIT increase is

attributable to a higher overall performance in connection with the

transfer of the service and development rights for the NanoTherm(R) therapy

to the US subsidiary.

* Constant development of the liquidity situation

The earnings situation, which remains negative, and the corresponding

negative free cash flow of EUR-10.32 million was offset by a capital

increase, which was successfully implemented in November 2014 (issue

proceeds: EUR10.2 million). The liquid funds therefore remained constant at

EUR9.15 million, and the equity capital and the corresponding equity capital

ratio were raised to EUR24.43 million and 85.1%.

* Milestone reached in the development process for prostate treatment in

the USA

In May 2015, MagForce AG submitted an application to the American

regulatory authority FDA to conduct a clinical study on the treatment of

patients with prostate cancer. This submission represents an important

milestone in the American approval process. We expect to start the study at

the end of 2015 and to receive market approval by mid-2017.

* Post-marketing study proceeds as planned; commercial treatment starts

A post-marketing study is currently being carried out for the approval of

the NanoTherm therapy for the treatment of glioblastoma patients in Europe.

The aim of the study is to pool key opinions and to raise awareness. In

parallel to this, commercial treatment of glioblastoma patients has begun

at three clinics in Germany.

* Increase of target price to EUR14.30, BUY rating

We have not changed the forecasts since our previous study (see the Initial

Coverage Research Study from 19/05/2015). In the DCF valuation model,

however, changes have arisen as a result of regular target price rollovers

and the adjustment of the market conditions to changes to the discount

rate. We have raised the target price to EUR14.30 (previously: EUR13.20) and

confirm the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13277.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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