Original-Research: EV Digital Invest AG (von NuWays AG): Buy

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Original-Research: EV Digital Invest AG - from NuWays AG

06.11.2024 / 09:01 CET/CEST

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

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Classification of NuWays AG to EV Digital Invest AG

Company Name: EV Digital Invest AG

ISIN: DE000A3DD6W5

Reason for the research: Update

Recommendation: Buy

from: 06.11.2024

Target price: EUR 1.80

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Mixed H1 // Project defaults to burden business; chg.

Topic: Last week, EVDI published unaudited H1´24 figures that came as a

mixed bag: While topline showed slight improvements on low levels, the

bottom remained soft, still burdened by project defaults. In detail:

H1 sales came in at EUR 1.6m, which is above previous year´s figure of EUR 1.5m,

but inflated by c. EUR 0.3m that are directly depreciated in other operating

expenses as it is rather unlikely that the amount outstanding can be

collected. The adjusted sales figure of EUR 1.3m is still above our estimates

of EUR 1.1m, driven by higher financing volumes of EUR 13.7m (vs eNuW: EUR 13m)

and higher avg sales per project of EUR 0.21m (vs eNuW: EUR 0.14m).

EBITDA came in at negative EUR 2.2m (vs EUR -1.4m in H1´23), below expectations

of EUR -1.9m, mainly due to high legal costs and decreasing but still high

personnel expenses paired with low topline levels. Note that EUR 2.8m of the

other operating expenses are expenses from write-offs of receivables that

are offset by the c. 0.3m sales adjustment and the EUR 2.3m reduction of value

adjustments of receivables in other operating income.

Overall, the business of EVDI is still heavily burdened by the deteriorating

real-estate market with project defaults and project delays, construction

costs and real-estate prices normalizing slower than expected, and investors

of the senior tranches (mostly banks) of new projects being more selective

and reserved.

All that should further burden the business at least for the remainder of

FY24. EVDI hence confirmed its FY24 sales guidance of EUR 2.3-2.7m, which

imply only EUR 1.0-1.4m adjusted sales in FY24 (vs eNuW: EUR 1.5m).

Positively, we should have already seen the trough in the real-estate market

and the recovery is already ongoing. Further, EVDI has diversified its

business by offering new products that are rather contrary to real-estate

investments such as deposit accounts, renewable energy projects, ETFs as

well as holistic wealth management. This initiated diversification should

reduce the dependency from the very cyclical real-estate project business,

stabilizing the income and margins going forward.

In light of the recent stock price weakness, we change to BUY with a reduced

PT of EUR 1.80, based on DCF.

You can download the research here: http://www.more-ir.de/d/31193.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.

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2023287 06.11.2024 CET/CEST

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