RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

17/08/2021 07:05

RNS Number : 7891I
  
Deutsche Beteiligungs AG
  
17 August 2021
  
 

 
London, UK, 17 August 2021
 
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) posted a 24.5% NAV total return in 9M21, even after the dilutive impact of the recent €100m share issue. This was mainly a function of improved earnings expectations of portfolio companies, coupled with disposal gains on DNS:Net and Rheinhold & Mahla, as well as a €26.0m uplift upon the announced exit from blikk. Results were further supported by the profit from DBAG's fund services (up to €13.9m in 9M21 vs €6.6m in 9M20) following the start of DBAG Fund VIII's investment period. While DBAG closed only one acquisition in Q321 (R+S, its second long-term investment), the management underlines the continued strong pipeline of opportunities (up to 86 in Q321 vs 81 in Q221).
 
DBAG's shares currently trade at a 10.8% premium to NAV, visibly below the five-year average of 18.6%. If we assume that DBAG's PE investments segment is valued at a discount to NAV in line with its peers (currently at 11%), it implies a P/E multiple for DBAG's fund services business of 9.0x based on new management guidance of segmental profit of €16-17m for FY21e. This implies a c 69% discount to the current average FY21e multiple for listed alternative asset managers of c 29x (based on Refinitiv consensus), suggesting that DBAG's current market valuation may be relatively undemanding. DBAG's shares now offer a dividend yield of 2.1% based on the FY20 pay-out of €0.80 per share. While the dividend per share is unlikely to return to pre-COVID-19 levels (€1.50 in FY19) in the near term, we note that DBAG's dividend policy is for a stable or rising dividend per share, with a mid-term FY23 target of €1.00-1.20 communicated last year.   


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