Original-Research: THE NAGA GROUP AG (von NuWays AG): Buy

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Original-Research: THE NAGA GROUP AG - from NuWays AG

11.02.2025 / 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 THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG

ISIN: DE000A161NR7

Reason for the research: Update

Recommendation: Buy

from: 11.02.2025

Target price: EUR 1.20

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Mixed FY24 prelims // Detailed guidance for FY25&26; chg.

NAGA reported preliminary FY24 figures that came in as a mixed back with

stronger than expected EBITDA but lower topline. Further, the company

provided a detailed guidance for FY25e and FY26e. In detail:

* Sales came in at EUR 62.3m (-20% yoy), below our estimates of EUR 67.5m. The

decline is mainly coming from the closure of loss-making non-core

subsegments. This is also reflected in lower than anticipated trading

activity of only 7.6m closed trades (vs. 11.5m pro forma in FY23; eNuW:

11.0m). Positively, volume per closed trade increased to EUR 14.8k (vs. EUR

7.7k in FY23) and revenue per closed trade to EUR 8.20 (vs eNuW: EUR 4.50).

Moreover, total customer deposits, which is a soft indicator for future

sales, exceed $ 100m for the first time.

* EBITDA stand at EUR 8.5m (-3.5% yoy vs. eNuW: EUR 5.9m), thanks to higher

than anticipated synergy effects from the merger and increasing

operational and marketing efficiency: Personnel and other operating

expenses declined by 22% and 14% yoy to EUR 10.8m and EUR 13.4m (eNuW),

while marketing expenses are down by 11% to EUR 21.0m.

After the transition year 2024 that was mainly characterized by integration,

automation and efficiency processes, NAGA looks set to restart its growth

engine. First measures such as the cooperation with BVB and Mike Tyson were

already taken in Q4´24 and should start to translate into additional growth

in Q1´25. Further measures fuelled by ramping-up are marketing expenses

(according to the guidance by >50% yoy in FY25 and another 18% yoy to EUR 39m

in FY26) are expected to follow. As a result, management is expecting

topline growth of 19% to EUR 74m in FY25 (vs. eNuW old: EUR 87.7m) and another

32% to EUR 97.8m in FY26 (vs. eNuW old: EUR 102.9m). Thanks to further synergy,

efficiency and scale effects, EBITDA should to increase to EUR 12.5m in FY25

(vs eNuW old: EUR 12.7m) and EUR 27.6m in FY26 (vs eNuW old: EUR 18.8m) implying

margins of 17% and 28%.

As the topline guidance fell short of expectations, we consider it as a

rather conservative with room for positive surprises, while the bottom line

looks quite ambitious.

Reiterate BUY with a reduced PT of EUR 1.20 (old: EUR 1.40) based on DCF.

You can download the research here: http://www.more-ir.de/d/31727.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.

ﯯ뻻

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2084105 11.02.2025 CET/CEST

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