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Original-Research: Netfonds AG (von NuWays AG): Buy

Original-Research: Netfonds AG - from NuWays AG

21.11.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG
ISIN: DE000A1MME74

Reason for the research: Update
Recommendation: Buy
from: 21.11.2024
Target price: EUR 76.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow

Q3 figures in line with est. // bond issuing announced; chg

Topic: Netfonds reported solid Q3 figures in line with our estimates on
both, top- and bottom line. With that, the upper end of the guidance is in
reach. Further, Netfonds announced a planned M&A transaction and a planned
bond issuing. In detail:

Gross sales grew by 16% yoy to EUR 56.2m, in line with our estimate of EUR 56m.
Main driver was the strong AuA and AuM development with new record levels of
EUR 27.2bn (+14% YTD; 20% yoy) and EUR 3.7bn, both above our estimates of EUR
26.7bn and EUR 3.5bn (eNuW old). Consequently, we increased our estimates for
FY24 of EUR 27.4bn AuA and EUR 4.0bn AuM.

EBITDA came in above estimates at EUR 1.9m (-5% qoq, 46% yoy vs eNuW: EUR 1.8m),
mainly driven by the solid topline growth paired with stable OPEX compared
to previous quarters, showing the strong operating leverage of the platform
business.

Going forward, we see further sequential growth mainly on the back of the
strong AuA growth that should become visible in top- and bottom-line with a
slight delay but also driven by value accretive M&A transactions (i.e. MFK
and Comfort Finance) as well as the launch of an own money market fund
earlier this year with already above EUR 75m end of Q2. As a result, the
confirmed guidance for FY24 of EUR 220-230m in gross sales and EUR 41.5-43m in
net sales can hence be taken as granted.

Apart from that, Netfonds announced to have signed an LOI subject to the
acquisition of another fund initiator. The potential target would add
approximately EUR 100m in volume. The acquisition price is expected to be in
the mid-single-digit millions. This acquisition is indicating once again
that Netfonds is playing an active role in the market consolidation. In
order to finance this and further potential transactions, Netfonds plan to
issue an unsecured bond with a low- to mid-double-digit million volume.

Overall and on the back of 1) the strong operating performance, 2) Netfonds
360° finfire platform being the key mid- to long term growth and scalability
driver and 3) further value accretive M&A transactions, we see Netfonds well
on track to reach its mid-term target of EUR 59m net sales (vs eNuW: EUR 60m)
and EUR 23m EBITDA (vs eNuW: EUR 21m) by FY26.

BUY with a new PT of EUR 76.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31399.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2035179 21.11.2024 CET/CEST


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