Original-Research: DN Group AG (von GBC AG): BUY

Original-Research: DN Group AG - from GBC AG



10.11.2026 / 09:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.



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Classification of GBC AG to DN Group AG



     Company Name:                DN Group AG
     ISIN:                        DE000A3DW408



     Reason for the research:     Research Note
     Recommendation:              BUY
     Target price:                6.85 EUR
     Target price on sight of:    31.12.2027
     Last rating change:
     Analyst:                     Cosmin Filker, Marcel Goldmann



Operational successes achieved at portfolio companies; bond issue with a
volume of up to EUR125 million; Rating: BUY



DN Group AG has consistently realigned its business model towards impact
investing since 2024. The company focuses on investments in businesses
operating in future-oriented sectors such as AI, mobility, the circular
economy, food, healthcare and energy, which are expected to combine economic
value creation potential with a positive contribution to the environment or
society. The selection of new investments is based on an Investment
Framework adopted in May 2025. Under this framework, at least 80% of the
investment volume is to be allocated to companies with a measurable positive
impact. Potential investments are assessed against exclusion criteria, their
contribution to the UN Sustainable Development Goals and as part of an ESG
impact due diligence process. At the same time, DN Group aims to support its
portfolio companies in their operational development and in accessing the
capital markets.



Several important development milestones have been achieved within the
investment portfolio in recent months. Of particular importance is the stake
acquired in Algene Holding SE at the end of 2025. The transaction was
structured as a share swap involving More Impact AG and therefore did not
result in a cash outflow for DN Group. Algene focuses on the industrial
production of microalgae, which can be used to produce proteins, fatty
acids, vitamins and pigments, among other products. Following successful
upscaling, series production of high-purity microalgae commenced in July
2026, with an initial harvest of 4,500 litres. Algene also received GMP
certification, thereby creating important prerequisites for supplying
customers in the cosmetics and food industries. In addition, preliminary
results from a joint study with the Technical University of Munich indicate
a potential application of spirulina microalgae as a feed ingredient in
shrimp farming. Final study results are expected in November 2026.



Progress has also been made at other portfolio companies. At SW Save The
Water Holding AG, in which DN Group has held a 9.5% stake since May 2025,
the focus is on the market launch of the waterless soap "Soapeya". The
product received a positive Dermatest assessment and was used in a
humanitarian aid deployment in Syria during summer 2026. In addition, DN
Group acquired a 20% stake in WINDWISE in March 2026. The company develops
base-load-optimised wind turbines based on its patented MaxCap technology
and plans to build more than 100 turbines by 2030. DN Group is also
providing strategic support to WINDWISE in connection with its planned
conversion into a stock corporation.



The first half of 2026 was primarily characterised by the continued
financing and operational development of the portfolio companies. Since the
beginning of the year, DN Group has provided direct and indirect portfolio
companies with loans totalling EUR6.73 million. At DN Group level, total
income declined to EUR7.93 million from EUR13.24 million in the prior-year
period, mainly due to lower income from securities disposals. Other
operating income of EUR4.57 million included EUR3.61 million from the disposal
of shares in Global Health Care AG. In addition, consultancy services of
EUR2.80 million had been rendered but not yet invoiced. Due to higher bond
liabilities, interest expenses increased to EUR3.34 million, while profit
after tax declined to EUR0.38 million from EUR3.49 million in the previous year.
It should be noted that DN Group's HGB results only reflect the operating
performance of the non-consolidated portfolio companies to a limited extent.
Equity remained at a high level of EUR386.90 million.



To finance the further expansion of the portfolio, the 2026/2033 corporate
bond with a total volume of up to EUR125 million is currently being placed.
The bond carries a coupon of 10.0% p.a. In the event of a full cash
placement, 85% of the net issue proceeds are intended to be invested in
existing or new portfolio companies, with the remaining 15% allocated to DN
Group's working capital. This provides additional financial flexibility for
the further development of the investment portfolio.



We continue to value DN Group using a NAV approach. Based on the assets
reported as of 30 June 2026 and taking into account the higher level of
financial debt, we derive a total NAV of EUR380.50 million (previously:
EUR383.63 million), corresponding to EUR6.85 per share (previously: EUR6.90).
Compared with our previous research report dated 11 June 2026, the total NAV
has declined slightly due to the higher level of financial debt. Based on
the current share price of EUR5.40, we assign a BUY rating.





You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=01f6a67eb29d41f53547994130b96faf



Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de



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Disclosure of potential conflicts of interest pursuant to Section 85 of the
German Securities Trading Act (WpHG) and Article 20 of the Market Abuse
Regulation (MAR). The following potential conflict of interest exists in
relation to the company analysed above: (5a,11). A list of potential
conflicts of interest can be found at: https://www.gbc-ag.de/de/Offenlegung



Note on issuer-sponsored research: This research report is issuer-sponsored
research and has been prepared in accordance with the EU Code of Conduct for
issuer-sponsored research.
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Completion: 09.11.2026 (4:15 pm)
First distribution: 10.11.2026 (09:30 am)



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2431340 10.11.2026 CET/CEST