INVESTOR RELATIONS CENTER

goetzpartners securities Limited

News Detail

EQS-News News vom 18.01.2019

Mauna Kea Technologies SA (MKEA-FR): Q4 performance generating momentum for 2019

goetzpartners securities Limited

18-Jan-2019 / 10:52 GMT/BST


Free to access research and investor meetings in a post-MiFID2 world.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.


Published to the market and investors on 18th January 2019 @ 9.58am (GMT).


Mauna Kea Technologies SA (MKEA-FR): Q4 performance generating momentum for 2019
Recommendation: OUTPERFORM
Target Price: EUR4.10
Current Price: EUR2.28 (CoB on 17th January 2019)

KEY TAKEAWAY

Mauna Kea reported Q4/2018 financial results slightly below our expectations, however, with sales of EUR2.1m (37% YoY), Q4 represents the strongest quarter for Mauna Kea in 2018, thus highlighting the increasing traction for Cellvizio and validating the transition to the new pay-per-use ("PPY") model in the US. Total sales were largely driven by consumables sales of EUR0.8m, of which EUR0.3m were associated with PPY (112% YoY). As we expected, FY2018 revenues from Cellvizio straight sales declined (-13% YoY) as a result of the move to the new sales model, but this decline was offset by an increase in consumables sales and services, bringing FY2018 sales to EUR6.8m (1% YoY), slightly short of our FY2018E estimate of EUR8.3m. We remind investors that low utilisation of PPY systems still represents a main risk, in our view, but we continue to believe that the new PPY model will translate into sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and EUR4.10 target price.

Strong Q4 performance expected to carry forward into 2019E

Q4 results highlighted the growing momentum of Cellvizio in the US, suggesting that investments into the commercial infrastructure made throughout 2018 are starting to pay off. In Q4, 19 new consignment systems were placed, compared with 20 new systems in Q3, 11 systems in Q2 and 5 systems in Q1, bringing the total number of new consignment systems placed in 2018 to 55. As discussed previously, we consider installed base growth a key performance indicator and the large number of new systems installed in 2018 reflects positive momentum for the PPY model that we believe will carry over into 2019E and pave the way for an increasing stream of recurring revenue in the future. We believe low utilisation rates of consignment systems pose the biggest risk to sustainable future growth, but we anticipate strong consumables sales growth in 2019E due to revenue realisation from Cellvizio systems installed throughout 2018 and increasing adoption driven by further clinical validation.

Consumables sales in 2018 offset revenue lag associated with PPY model

The fact that Mauna Kea was able to achieve 1% overall revenue growth in FY2018 despite a 13% reduction in straight sales shows that the company can achieve solid sales with PPY, while removing the barrier to adoption of large upfront costs, thereby maximising Cellvizio's penetration and installed base. The reduction in system straight sales was offset by 17% and 6% increases in consumables sales and services, respectively. The strong consumables sales are testament to the increasing utilisation of Cellvizio. In fact, consumable reorders and PPY probe orders represented 90% of total consumable probe shipments in FY2018, compared with 81% in 2017. With an extended installed base and increasing utilisation, Mauna Kea is well-positioned to capitalise on opportunities that emerge from combined use with complimentary technologies that we believe will increasingly develop as the company adds to its already extensive regulatory portfolio.

We maintain and reiterate our target price of EUR4.10

We maintain and reiterate our target price of EUR4.10 per share, which is based on an EV / Sales multiple approach using our EUR25.1m revenue estimate for 2022E, a multiple of 4.0x, a discount rate of 11% and a probability rate of 75%. We continue to believe that Mauna Kea is well-positioned to enter a period of accelerated growth as the new commercial strategy and strong sales infrastructure start to pay off and revenues from systems consigned in 2018 continue to be realised throughout 2019E. We maintain and reiterate both our OUTPERFORM recommendation and EUR4.10 target price.

Kind regards,


Martin Piehlmeier | Analyst

goetzpartners Healthcare Research Team | Research Team

goetzpartners securities Limited

The Stanley Building, 7 Pancras Square, London, N1C 4AG, England, UK.

T +44 (0) 203 859 7725 | martin.piehlmeier@goetzpartners.com / healthcareresearch@goetzpartners.com

www.goetzpartnerssecurities.com

Registered in England No. 04684144.

Managing Directors: Dr Stephan Goetz, Martin Brunninger and Ulrich Kinzel.


goetzpartners securities Limited - Team Members

Equity Research Analysts - Martin Brunninger, Brigitte de Lima, Chris Redhead, Martin Piehlmeier and Kieron Banerjee.

Sales / Marketing - Erland Sternby.

Corporate Finance - Ulrich Kinzel, Wolf Dornbusch and Youchen Xin.

Corporate Access and IR - Tanya Tracey and Bettina Ellinghorst.

Compliance - Paul W. Dunne.


Click here to see our privacy policy.


GPSL has a formal client relationship with Mauna Kea Technologies SA.

GPSL publishes and distributes "Investment" Research and "Corporate Sponsored" Research. Our Corporate Sponsored Research and investor meetings (e.g. NDRs, 1 to 1 meetings) are free to access and attend and is not classified as an inducement in a post-MiFID2 world, this is because the issuer is paying GPSL. GPSL does not offer any execution or market making services. This is a marketing communication as defined by the Financial Conduct Authority ("FCA"). The information herein is considered to be an acceptable minor non-monetary benefit as defined under FCA COBS 2.3A19(5).

In accordance with the General Data Protection Regulation ("GDPR") - if you would like to be removed / unsubscribed from our CRM (also please note that you are free to contact GPSL at any time in the future to have your e-mail subscription amended), please e-mail:
researchproduction@goetzpartners.com

About GPSL: goetzpartners securities Limited is a member of the goetzpartners group, and a leading pan European investment bank and research company. We bring together a wide range of expertise, insights and innovations to advance the interests of our clients around the world. The fast-changing environment brings challenges for businesses and investors. Research innovation, digital transformation and disruptive business ideas reshuffle the corporate world at a relentless pace. Our sector knowledge and our global footprint bring together corporate intelligence and a deep understanding of the industry with a wide network of top decision makers. These collective insights help our clients to stay at the leading edge of change.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.

This communication (including any attachments) from goetzpartners securities Limited ("GPSL") is confidential and may contain information which is proprietary, privileged or otherwise legally protected against unauthorised use or disclosure. If you receive this communication in error or are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication, and note that any review or dissemination of, or the taking of any action in reliance on this communication is expressly prohibited. GPSL shall not be liable for the improper or incomplete transmission of the information contained in this communication nor for any delay in its receipt or damage to your system. GPSL does not guarantee that the integrity of this communication has been maintained nor that this communication is free of viruses, interceptions or interference and makes no warranties in relation to these matters. This is not an offer or a solicitation to buy or sell securities or investment products, or an official confirmation. GPSL record electronic and phone communications in accordance with FCA and MiFID2 regulations, they will be monitored for regulatory and training purposes. GPSL is authorised and regulated by the Financial Conduct Authority of the United Kingdom (Firm Reference Number: 225563).

Click on the following link for the GPSL MiFID2 Investor Guidance Notice

GPSL Equity Research publications are available on the following aggregators and via news distribution circuits (For Institutional Use Only): AlphaMetry, AlphaSense, Bloomberg (GOET), Capital IQ, EQS, FACTSET, ResearchFN, Research Tree, RNS Reach, Sentieo and Thomson Reuters.

Please copy the below link and paste it into your browser for the full pdf version of the equity research report:

https://gp.bluematrix.com/sellside/EmailDocViewer?encrypt=9284739a-47f7-42f3-bd18-10a748bbfa7d&mime=pdf&co=gp&id=paul.dunne@goetzpartners.com&source=libraryView

Free to access research and investor meetings in a post-MiFID2 world.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

show this
Diese Inhalte werden Ihnen präsentiert von der .