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

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Original-Research: Swissnet AG - from NuWays AG

03.02.2025 / 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 Swissnet AG

Company Name: Swissnet AG

ISIN: CH0451123589

Reason for the research: Update

Recommendation: Buy

from: 03.02.2025

Target price: EUR 20.00

Last rating change:

Analyst: Philipp Sennewald

Merger finalized / Strong current trading

Topic: In January, Swissnet finalized the merger and rebranding into

Swissnet Group. Moreover, the company reported strong new orders at the

start of the year. In detail:

At the Extraordinary General Meeting on January 20, the shareholders of

beaconsmind AG unanimously voted for the renaming into Swissnet AG as well

as the merger between Swissnet and beaconsmind. In our view, this marks an

important milestone in the company's transformation into a market leader in

IT infrastructure, cloud-based communication and AI-driven hospitality

solutions.

Moreover, the EGM approved the introduction of a capital range between CHF

850k and CHF 1.27m. With this, the company has the flexibility to actively

respond to arising opportunities in accordance with its targeted growth

strategy. In our view, this is a clear sign the management is continuing to

screen the market, which is in turn offering a certain upside to our

estimates in the form of future M&A activites.

Strong current trading. In January, the company received two major orders

underscoring its growth trajectories while also confirming Swissnet's market

leading position in hospitality and IT infrastructure. First, Swissnet

announced a new project with long-standing customer Vitanas, one of

Germany's larges nursing home operators. The project includes the

modernization of the communication infrastructure at Vitanas' Peine Hospital

and has a volume of EUR 0.8m. This was followed by the announcement, that the

company extended its partnership with Philip Morris, including advancing the

digitalization of the customers' PoS systems in Germany and Austria as well

as providing 11k IoT SIM cards for digital signage monitors. According to

management, the project will generate sales to the tune of almost EUR 1.3m.

Overall a strong start into the year, showing that the company is on track

to deliver on its growth and profitability targets. For FY25e, management is

targeting sales in the range of CHF 26-28m (eNuW: CHF 26.5m) and an EBITDA

in the range of CHF 6-7m (eNuW: CHF 6.1m), implying a margin of 24.1% at

mid-point (eNuW: 23.0%).

In our view, this is currently not well reflected in the share price, given

a valuation multiple of 9.7x EV/EBITDA FY25e (4.9x FY26e). We hence

reiterate BUY with an unchanged EUR 20 PT based on DCF.

LINK to register for digital roundtable with CEO on February 11

You can download the research here: http://www.more-ir.de/d/31699.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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