Original-Research: R. STAHL AG (von NuWays AG): Buy

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Original-Research: R. STAHL AG - from NuWays AG

23.10.2024 / 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 R. STAHL AG

Company Name: R. STAHL AG

ISIN: DE000A1PHBB5

Reason for the research: Update

Recommendation: Buy

from: 23.10.2024

Target price: EUR 29.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Solid Q3 preview // FY guidance in reach

Topic: R. Stahl will release its Q3 report on November 6th. We expect

moderate sales growth and a slight decrease in EBIT from a high comparable

base.

Sales are expected to come in at EUR 90m, 4.7% above last year (eNuW),

supported by a lower but still solid order backlog of EUR 121m end of H1'24.

EBIT is seen to come in at EUR 7.5m (-12% yoy), leading to a sound 8.3% EBIT

margin (-1.5ppts yoy).

While extraordinary costs from the EXcelerate strategy program should be

lower in Q3 and Q4, as already 80% of the costs have occurred, an increase

in personnel costs could put pressure on profitability. We expect an

increase from EUR 33.6m in Q3'23 up to EUR 36.0m (40% of sales vs. 37.6% in

Q3'23), of which c. 70% should be attributable to wage inflation and 30% to

a higher headcount (1,754 end of H1'24 vs. 1,715 end of H1'23).

Solid order intake expected: After the subdued order intake in H2'23, driven

by active destocking activities from customers due to an increasing

stabilization of global supply chains and a muted European chemical

industry, order intake in H1'24 recovered from a low level (EUR 181m in H1'24

vs. EUR 157m in H2'23). As demand in the chemical industry is slightly picking

up and thanks to structural trends such as LNG and nuclear, we expect order

intake to remain on a solid level (eNuW: EUR 88m).

FY sales and adj. EBITDA guidance in reach: Management forecasts sales in

the range of EUR 335-350m (eNuW: EUR 349m) and an adj. EBITDA of EUR 35-45m (eNuW:

EUR 40m). The forecast looks reasonable to us and might be even a bit

conservative on the top-line carried by an unbroken demand for electrical

explosion protection solutions in the LNG and gas industry and a solid order

backlog.

R. Stahl's mid-term prospects remain bright as the company strongly benefits

from (1) its superior market share along the LNG value chain, (2) a rising

need for production automation across offshore oil and gas rigs, and

production plants of several industries and (3) the ongoing nuclear

renaissance across Europe.

We reiterate our BUY rating with an unchanged PT of EUR 29.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31091.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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2013917 23.10.2024 CET/CEST

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