May 20, 2024

rch GmbH to Noctiluca S.A. Company Name: Noctiluca S.A. ISIN: PLNCTLC00018 Reason for the research: Update from: 20.05.2024 Target price: PLN 208.90 Target price on sight of: 12-months Last rating change: Analyst: Mateusz Pudlo Noctiluca (NCL) continues to make progress in terms of both revenues from proprietary materials and the number of commercialised patented families of chemicals compounds. 20.05.2024 - 08:47:33 Original-Research: Noctiluca S.A. (von East Value Research GmbH ): Original-Research: Noctiluca S.A. - from East Value Research GmbHClassification of East Value Research GmbH to Noctiluca S.A.Company Name: Noctiluca S.A.ISIN: PLNCTLC00018Reason for the research: Updatefrom: 20.05.2024Target price: PLN 208.90Target price on sight of: 12-monthsLast rating change:Analyst: Mateusz PudloNoctiluca (NCL) continues to make progress in terms of both revenues fromproprietary materials and the number of commercialised patented families ofchemicals compounds. According to management, these are two key elements inbuilding value for companies like Noctiluca. To date, the company has 4patent applications, with one patent granted. NCL is becoming a recognisedcompany in the display industry, allowing it to convert its MaterialTesting Agreements (MTAs) into paid contracts. Important Joint DevelopmentProjects (JDPs) with two leading display companies in Korea are stillscheduled to start in H2/2024E. In addition, Noctiluca is now going onestep further from being a pure chemical company and plans to develop acomplete OLED stack with its Taiwanese partner in order to create turnkeysolutions for its customers. Noctiluca aims to be the first company in theworld to have a complete printed electronics (IJP) offering by 2024E. Thelast few months have brought a lot of good news for the OLED industry,including news of Apple's planned full implementation of OLEDs in itstablets and laptops. Taking into account the positive development of the IPportfolio as well as the development of the OLED industry as a whole, wemaintain our valuation of Noctiluca at USD 81.75m (PLN 325.37m / PLN 208.90per share), which implies an upside of 97.4%.In Q1/2024, Noctiluca largely completed orders from 2023, resulting insales of materials of PLN 272k (Q1/23: PLN 2k). Operating expensesincreased by +95.7% y-o-y to PLN 2.45m, resulting in EBITDA of PLN -1.33m(Q1/23: PLN -1.08m) and a net income of PLN -1.81m (PLN -1.19m). At the endof Q1/2024, NCL had only PLN 519k in cash, but thanks to a financingagreement for a loan of up to PLN 6m with Rubicon Partners (majorshareholder of Synthex Technologies), the financial stability is ensureduntil the expected share issue in H2/2024E.For the full year 2024E, we have lowered our revenue estimates to PLN 4.05m(prev. PLN 4.67m), as our decision is motivated by the postponement ofthree JDP to 2025E. We now forecast an EBIT of PLN -5.22m (previously: PLN-4.6m) and a net profit of PLN -5.19m (PLN -4.57m).You can download the research here:http://www.more-ir.de/d/29821.pdfFor additional information visit our websitehttps://eastvalueresearch.com/.Contact for questionsAdrian KowollikEmail: ak@eastvalueresearch.comTel. +49 30 20609082-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions. @ dpa.de