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

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Original-Research: Einhell Germany AG - from NuWays AG

08.01.2025 / 09:05 CET/CEST

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

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The issuer is solely responsible for the content of this research. The

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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: 08.01.2025

Target price: EUR 86.00

Target price on sight of: 12 months

Last rating change:

Analyst: Konstantin Völk

Another strong year ahead for Einhell; chg. est.

Topic: After an already strong FY24e, Einhell should in our view also in

FY25e convince with solid sales growth and a further margin expansion.

Sales are expected to increase to EUR 1,145m in FY25e due to a strong demand

for Einhell's Power X-Change products and steadily increasing market share

in Einhell's core markets. In H1'24, Einhell was already by far the largest

player for cordless garden tools with a market share of 39% in Germany (vs.

36% in FY23) and 19% for cordless tools (vs. 17% in FY23). Next to the

Western European region, Einhell Australia is also growing fast with EUR 148m

sales in 9M'24 (vs. EUR 126m in 9M'23), accounting for c. 18% of total sales.

Furthermore, we expect Einhell to increase its EBT margin to 8.6% (eNuW)

next year thanks to the increasing share of PXC products (9M'24: 50% share;

 yoy), lower freight costs, a decrease in headcount and positive

operating leverage.

Going forward, Einhell should benefit from the structural trend towards

cordless battery-powered tools thanks to (1) high convenience of cordless

tools compared to conventional tools as they are more flexible, offer a high

level of safety and have less emissions and maintenance. (2) A rising

technological capability of Li-Ion battery systems, including improved

recharging speed, durability, energy management and maximum load. (3)

Reasonable pricing of Li-Ion battery systems thanks to mass market

production, making powerful battery systems applicable for a wide range of

semi-professional DIY products.

On top of that the current valuation of the stock is undemanding not only

based on an intrinsic valuation via DCF but also compared to its listed

peers as the stock is currently trading at only 12x trailing P/E and 9x

trailing EV/EBIT, despite its strong fundamentals.

Hence, we reiterate BUY with an unchanged PT of EUR 86 based on DCF.

You can download the research here: http://www.more-ir.de/d/31589.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.

ﯯ뻻

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2063195 08.01.2025 CET/CEST

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