Dow Jones received a payment from EQS/DGAP to publish this press release.
goetzpartners securities Limited
Mauna Kea Technologies SA (MKEA-FR): Q3 sales indicate growing momentum:
22-Oct-2018 / 16:45 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 22nd October 2018 @ 3.49pm (London
time).*
*Mauna Kea Technologies SA (MKEA-FR): Q3 sales indicate growing momentum*
*Recommendation: OUTPERFORM*
*Target Price: EUR4.10*
*Current Price: EUR2.70 (COB on 19th October 2018) *
*KEY TAKEAWAY*
Mauna Kea reported Q3/2018 financial results in line with our expectations.
Total sales of EUR1.9m (4% YoY) were largely due to EUR0.8m consumable sales
(31% YoY), of which EUR0.3m were associated with the new pay-per-use program
(81% YoY). The reported 10% decrease in revenue from systems is associated
with the revenue lag under the new consignment business model, which remains a
key focus for Mauna Kea. We see the continued growth in installed base of
consignment systems as a key performance indicator and expect recurring
revenue from these new system placements to increasingly be realised in
Q4/2018E, enabling the company to meet our FY2018E sales of EUR8.3m. Low
utilisation of consignment systems represents the main risk, in our view, but
we expect recent investments into the commercial infrastructure in the US to
pave the way for sustainable future growth. We maintain and reiterate both our
OUTPERFORM recommendation and EUR4.10 target price.
*Q3 results reflect strong momentum in the US*
The Q3 results highlighted the continued momentum in the US, indicating that
investments into the commercial infrastructure are starting to pay off. In Q3,
20 new consignment systems were placed (400% YoY), compared with 5 new systems
in Q1 and 11 systems in Q2 of this year, bringing the total number of
consignment systems placed to 49. As discussed in our previous note [1] (Sept
2018), we consider installed base growth as a key performance indicator, and
the large number of new systems installed this quarter reflects positive
momentum that we believe will continue in Q4 and carry over into 2019E. With a
continuously expanding installed base, the focus increasingly lies on
utilisation of consignment systems, which poses the biggest risk to recurring
revenue and sustainable future growth, in our view.
*Positive news flow to drive Cellvizio utilisation*
The continuous positive news flow and increasing body of clinical evidence
associated with Cellvizio underline the system's significant added value to
the medical community. Most recently, Mauna Kea announced the first published
report of live "Tele-Cellvizio" utilisation in vivo. The live audiovisual
transmission between the surgeon and the pathologist allows for real-time
interpretation of optical biopsies, thus improving surgical outcomes. This
places Mauna Kea at the forefront of innovation in the application of robotics
and AI to improve postoperative results and highlights Cellvizio's
compatibility and with novel surgical platforms.
*Robert L. Gershon new CEO*
Earlier this month, Mauna Kea announced the appointment of Robert L. Gershon
as CEO, effective 22nd October 2018. Robert brings over 30 years of experience
in directing commercial strategies and marketing execution and was most
recently CEO of Bovie Medical Corporation - an American medical device
manufacturer focused on electrosurgery equipment. Other previous positions
include leadership positions with Henry Schein and Covidien. Sasha Loiseau,
founder and current CEO of Mauna Kea, will become Chairman of the Board of
Directors.
*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 throughout
2018 continue to be realised. We maintain and reiterate both our OUTPERFORM
recommendation and EUR4.10 target price.
Kind regards,
Martin Brunninger | 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.brunninger@goetzpartners.com /
healthcareresearch@goetzpartners.com
www.goetzpartnerssecurities.com [2]
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
and Martin Piehlmeier.
Sales / Marketing - Erland Sternby.
Corporate Finance - Ulrich Kinzel, Wolf Dornbusch and Youchen Xin.
Central and Eastern European Corporate Finance Team - John-Paul Warszewski,
Robert Gebhardt and Przemek Rodecki.
Corporate Access and IR - Tanya Tracey and Bettina Ellinghorst.
Compliance - Paul W. Dunne.
Click here [3] 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 [4]") - 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 [2]: 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
[5] 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 [6]
GPSL Equity Research publications are available on the following aggregators
and via news distribution circuits (For Institutional Use Only): AlphaMetry
[7], AlphaSense, Bloomberg (GOET), Capital IQ, EQS, FACTSET, ResearchFN [8],
Research Tree [9], RNS Reach, Sentieo [10] 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=4c28482a-42e3-4869-a
18b-7826229525ec&mime=pdf&co=gp&id=paul.dunne@goetzpartners.com&source=library
View [11]
*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.
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2018 11:45 ET (15:45 GMT)
