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

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Original-Research: Nynomic AG - from NuWays AG

13.03.2025 / 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 Nynomic AG

Company Name: Nynomic AG

ISIN: DE000A0MSN11

Reason for the research: Update

Recommendation: Buy

from: 13.03.2025

Target price: EUR 34.50

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Q4 prelims in line, returning to growth in FY25; chg. est.

Topic: Nynomic released preliminary Q4 figures largely in line with

expectations and a FY25 guidance, which reflects a return to growth. Yet,

the expected FY25 growth guidance fell short of market expectations due to

ongoing macroeconomic headwinds.

Preliminary Q4 sales stood at EUR 30.5m, down roughly 12% yoy, as the trends

witnessed during the first three quarters of the years have not reversed (as

expected). For instance, Nynomic had to deal with a broad reluctance in

regards to placements of new orders as customers remained cautious about

shortterm economic developments. Within Clean Tech, customers in traditional

silicon-based sectors are experiencing delays in new projects, as well as

upgrades to existing systems, due to changes in the AI and memory markets,

leading to postponements/delayed product call-offs. FY24p sales came in at EUR

102.5m, a 13% yoy decline. The order book at the end of Q4 stood at EUR 48m

(-12% yoy).

As a result the negative operating leverage, the preliminary Q4 EBIT

decreased 66% yoy to EUR 2.4m with a margin of 7.8% (-12.9pp yoy). FY24p EBIT

was down 51% at EUR 7.5m.

Management released a conservative FY25 guidance, expecting EUR 105-110m sales

and EUR 8.5-10m EBIT, which came in below market expectations of EUR 123m sales

and EUR 15.8m EBIT. This is the result of a rather conservative approach by

management following last year's guidance cut and continued significant

uncertainties across the group's end markets.

Despite continued short-term headwinds, management remains confident to be

able to reach the mid-term guidance of at least EUR 200m sales and a 16-19%

EBIT margin. Next to a return to strong organic growth (~ 10% p.a.), meeting

the mid-term targets will be subject to acquisitions (EUR 45m sales when

assuming 10% organic CAGR from 2026e onwards).

Organic growth should be stemming from a broad recovery of core end markets

such as semiconductors, medical devices and pharmaceuticals, the group's R&D

efforts bearing fruit (management mentioned a well-filled product

development pipeline) and recent promising product launches. For instance,

LayTec announced a strategic partnership, supplying advanced optical

inspection tools for quality assurance in a state-of-the art thin film PV

production line (perowskite solar glass). Last year, m-u-t launched the

LabScanner Plus, a bulk-testing tool for pharmaceutical companies and in

2023 real-time analysis within a tablet press in cooperation with FETTE.

Acquisitions: During the earnings call, management highlighted to be far

along several M&A processes and mentioned confidence in the ability to close

add-ons this year. Thanks to its strong balance sheet, the company should be

able to handle a larger acquisition (eNuW: more than EUR 10m sales) with a

focus on technological and/or geographical diversification.

Conclusion: With macroeconomic headwinds likely to persist throughout FY25,

Nynomic looks set to grow slower than management's long-term annual organic

growth expectation of roughly 10%. Yet, with ongoing R&D efforts and a

strong project pipeline, the company should be well-positioned to reap the

benefits once end markets recover. We confirm our BUY rating with a new EUR

34.5 PT (old: EUR 44) based on DCF.

You can download the research here: http://www.more-ir.de/d/31962.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.

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2099836 13.03.2025 CET/CEST

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