Original-Research: 029 Group SE (von NuWays AG): SELL

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Original-Research: 029 Group SE - from NuWays AG

30.04.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to 029 Group SE

Company Name: 029 Group SE

ISIN: DE000A2LQ2D0

Reason for the research: Update

Recommendation: SELL

from: 30.04.2025

Target price: EUR 15.80

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

FY24 out: Portfolio progressing as planned

029's net income stood at EUR 0.33m, comparing to previous year's EUR 5.6m loss,

which was the result of the successful exit from the investment in Emerald

Stay (EUR 0.94m other operating income) and the writeoff of the investment

Conscious Good the year before. As a reminder, 029 sold it's 5.2% stake in

Emerald Stay. The transaction is expected to generate roughly EUR 1.6m gross

proceeds, reflecting a realized multiple on the FY23 book value of around

2.3x and 2.7x on the invested capital.

Limestone Capital, the key holding (87% of NAV, eNuW) continues to grow its

portfolio. The company is about to open a hotel on Mallorca and purchased a

former Nobu location in London. With those, the number of Aethos hotels

owned and managed, is set to increase to 10. Further, Limestone acquired a

majority stake in LOISIUM Wine & Spa Hotels. Over the next twelve months,

four new LOISIUM hotels are set to open in Italy and France backed by

Limestone's commitment to invest over EUR 100m into the expansion of the

brand. Limestone also spearheaded a EUR 40m Series A financing round for MYNE

Homes, Europe's leading managed co-ownership provider for premium vacation

homes in Germany, Austria, Italy, Spain, France, Sweden and Croatia.

TRIP Drinks (8.1% of NAV, eNuW), UK's leading brand for CBD and magnesium

drinks, CBS oils, gummies and powders continues its growth trajectory. In

March, TRIP was the third most popular drink choice. The company is also

progressing well with its geographical expansion, especially in the USA.

hotelbird (3.3% of NAV, eNuW) is leading solution provider for a seamless

digital guest journey within the hotel industry. As the company is able to

finance itself, the last funding round took place in 2019. Worth

highlighting, at the end of 2024, ReGuest AG went public in Austria. The

hotel CRM software company generated some EUR 4.3m sales in FY24 and is

currently valued at EUR 150m (market cap). While this is not an apples to

apple comparison, it underpins the sector's high multiples.

Brother's Bond (1.1% of NAV, eNuW) raised $ 7.5m at the beginning of FY25.

This should allow the company to further drive growth an reach sustainable

profitability levels during the near-term.

As the current market cap (ퟞ% ytd.) notably exceeds the company's fair

NAV, we downgrade 029 to SELL with a new PT of EUR 15.8 (EUR 14) based on a sum

of-the-parts valuation with a 5% holding discount.

You can download the research here: http://www.more-ir.de/d/32394.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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

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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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2127264 30.04.2025 CET/CEST

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