Original-Research: Netfonds AG (von NuWays AG): Buy

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Original-Research: Netfonds AG - from NuWays AG

21.11.2024 / 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 Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: Buy

from: 21.11.2024

Target price: EUR 76.00

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Q3 figures in line with est. // bond issuing announced; chg

Topic: Netfonds reported solid Q3 figures in line with our estimates on

both, top- and bottom line. With that, the upper end of the guidance is in

reach. Further, Netfonds announced a planned M&A transaction and a planned

bond issuing. In detail:

Gross sales grew by 16% yoy to EUR 56.2m, in line with our estimate of EUR 56m.

Main driver was the strong AuA and AuM development with new record levels of

EUR 27.2bn (% YTD; 20% yoy) and EUR 3.7bn, both above our estimates of EUR

26.7bn and EUR 3.5bn (eNuW old). Consequently, we increased our estimates for

FY24 of EUR 27.4bn AuA and EUR 4.0bn AuM.

EBITDA came in above estimates at EUR 1.9m (-5% qoq, 46% yoy vs eNuW: EUR 1.8m),

mainly driven by the solid topline growth paired with stable OPEX compared

to previous quarters, showing the strong operating leverage of the platform

business.

Going forward, we see further sequential growth mainly on the back of the

strong AuA growth that should become visible in top- and bottom-line with a

slight delay but also driven by value accretive M&A transactions (i.e. MFK

and Comfort Finance) as well as the launch of an own money market fund

earlier this year with already above EUR 75m end of Q2. As a result, the

confirmed guidance for FY24 of EUR 220-230m in gross sales and EUR 41.5-43m in

net sales can hence be taken as granted.

Apart from that, Netfonds announced to have signed an LOI subject to the

acquisition of another fund initiator. The potential target would add

approximately EUR 100m in volume. The acquisition price is expected to be in

the mid-single-digit millions. This acquisition is indicating once again

that Netfonds is playing an active role in the market consolidation. In

order to finance this and further potential transactions, Netfonds plan to

issue an unsecured bond with a low- to mid-double-digit million volume.

Overall and on the back of 1) the strong operating performance, 2) Netfonds

360° finfire platform being the key mid- to long term growth and scalability

driver and 3) further value accretive M&A transactions, we see Netfonds well

on track to reach its mid-term target of EUR 59m net sales (vs eNuW: EUR 60m)

and EUR 23m EBITDA (vs eNuW: EUR 21m) by FY26.

BUY with a new PT of EUR 76.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31399.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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2035179 21.11.2024 CET/CEST

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