Original-Research: Einhell Germany AG (von NuWays AG): Buy

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Original-Research: Einhell Germany AG - from NuWays AG

15.11.2024 / 09:05 CET/CEST

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

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Classification of NuWays AG to Einhell Germany AG

Company Name: Einhell Germany AG

ISIN: DE000A40ESU3

Reason for the research: Update

Recommendation: Buy

from: 15.11.2024

Target price: EUR 86.00

Target price on sight of: 12 months

Last rating change:

Analyst: Konstantin Völk

Final Q3 results out & guidance confirmed; chg. est.

Topic: Einhell released strong final Q3 numbers in line with preliminary

results. Further, Einhell confirmed its previously increased FY24e guidance

(company news 10 October).

Q3 sales increased 14.5% yoy to EUR 263m thanks to the ongoing strong demand

for the company's Power X-Change products (9M'24: 50% PXC share; 

yoy). Q3 sales in Western Europe incl. DACH increased 24.7% to EUR 146m, still

making up the bulk of overall revenue with c. 55% of Group sales. Sales in

Eastern Europe came in at EUR 29.8m, a 7.6% increase yoy supported by a strong

demand from Turkey despite the difficult local economic environment.

Overseas and Other Countries showed a flat yoy sales development at EUR 72.8m,

driven by a solid performance of Einhell Australia but offset by top-line

challenges in Einhell Canada and South Africa.

EBT for Q3'24 increased disproportionately by 22.5% to EUR 22.6m with an EBT

margin of 8.6% (.6ppts yoy) mainly due to a decreased material cost ratio

and operating leverage leading to a decreased personnel cost ratio. The

ratio of material cost declined 2.1ppts yoy to 58.2% thanks to the

increasing share of PXC products, which tend to deliver higher gross

margins. While personnel costs rose 8.5% yoy to EUR 36.4m due to wage

inflation and higher variable compensation, headcount decreased 2.5% yoy

predominantly due to reductions in Thailand and the sale of Einhell Colombia

on 31 May 2024. However, despite the absolute increase in personnel costs,

the expense ratio decreased 0.8ppts yoy thanks to a higher turnover. On the

other hand, other operating expenses increased disproportionately by 19.5%

to EUR 45.3m (17.2% of sales; .7ppts yoy) mainly due to higher advertising

costs.

Einhell confirmed its FY24e guidance of EUR 1,070m sales and an EBT margin in

the range of 8.0-8.5%. In our view, the new guidance looks still plausible

thanks to the strong demand for Einhell's Power XChange products and the

favorable top-line development in 9M. Further, we expect a 0.4ppts yoy

increase in EBT margin to 8.2% as an increasing PXC share and operating

leverage is kicking in. Going forward, we expect the positive momentum to

continue during FY25e (eNuW sales: EUR 1,145m).

Reiterate BUY with an unchanged PT of EUR 86 based on DCF.

You can download the research here: http://www.more-ir.de/d/31321.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

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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.

ﯯ뻻

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