Original-Research: INDUS Holding AG (von NuWays AG): Buy

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Original-Research: INDUS Holding AG - from NuWays AG

04.11.2024 / 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 INDUS Holding AG

Company Name: INDUS Holding AG

ISIN: DE0006200108

Reason for the research: Update

Recommendation: Buy

from: 04.11.2024

Target price: EUR 34.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Case fully intact despite PW; chg. est.

Topic: On Thursday, INDUS released its preliminary Q3 sales and EBIT figures

in line with our estimates. Further, due to non-cash goodwill impairments,

the company revised its FY24e EBIT guidance.

Impairment of goodwill and intangible assets: Due to the annual assessment,

INDUS had to reduce the book value of goodwill and other intangible assets

in the amount of EUR 5.2m in the Infrastructure segment and EUR 1.5m in the

Materials segment. The need for these impairments resulted from reduced

forecasts of future cash flow for the two units.

Preliminary Q3 sales came in at c. EUR 441m (eNuW: EUR 445m), a slight decrease

of c. 4% yoy due to a challenging macroeconomic environment. Reported EBIT

remained roughly unchanged yoy at a solid EUR 31.8m (eNuW: EUR 30.8m). However,

adjusting for impairments of EUR 6.7m in Q3'24 and EUR 17.6m in Q3'23 due to

higher interest rates, EBIT decreased by 22.4% yoy.

FY EBIT guidance revised: While INDUS confirmed its FY24e top-line and FCF

guidance of EUR 1.70-1.80bn and EUR 110m, they reduced their EBIT forecast to EUR

115-125m (previously: EUR 125-145m) due to impairments. However, the guidance

looks plausible in our view as INDUS has achieved by now c. 75% of the lower

end of the sales guidance in the first three quarters while the situation

has improved already compared to H1'24 in terms of sales. Moreover, the

revised EBIT outlook implies an EBIT margin of 5.1% in Q4'24e at mid-point,

which looks conservative to us after 7.5% in 9M'24.

All things considered, this is rather positive news. Preliminary results are

in line with our estimates, despite the EUR 6.7m impairment. Even though INDUS

decreased its FY EBIT outlook due to impairments, it is a non-cash expenses

and hence it will not affect FCF. Further, the company reiterated its FCF

guidance of EUR 110m (eNuW: EUR 114m), which implies a strong FCFY24e of c. 10%.

Therefore, we reiterate our BUY rating with an unchanged PT of EUR 34 based on

FCFY24e and confirm the stock as one of NuWays' Alpha Picks.

You can download the research here: http://www.more-ir.de/d/31169.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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2021313 04.11.2024 CET/CEST

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