Märkte & Kurse

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

09.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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:                       09.08.2024
     Target price:               EUR 29.00
     Last rating change:
     Analyst:                    Christian Sandherr

Strong Q2 numbers // FY guidance confirmed; chg. est.

Topic: R. Stahl released strong Q2 numbers with sales and EBITDA above our
estimates. Management confirmed its FY24e guidance, which looks well in
reach (eNuW).

Q2 sales grew 16.4% yoy to EUR 89.3m (eNuW: EUR 87m), driven by a solid order
backlog of EUR 122m at the end of Q1 and a further ease in supply chains. Q2
adj. EBITDA increased disproportionately by 25.7% yoy to EUR 10.9m (eNuW: EUR
10.2m) thanks to a lower cost of materials ratio (30.6% vs. 34.4% in Q2'23)
and despite higher personnel costs due to wage inflation. Further, other
operating expenses came in unusually high (EUR 16.4m vs. EUR 13.9m in Q2'23) due
to negative one-offs from consulting costs incurred in connection with the
EXcelerate strategy program, which should come down in Q3 and Q4. The adj.
EBITDA margin increased by 0.9pp yoy to 12.2% and remains at a solid level.

Solid order intake. After a 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). Q2
order intake came in at EUR 88.5m, slightly below the EUR 89.3m last year but
significantly above Q3&Q4'23. Order intake was supported by a slight
recovery in the chemical industry and new orders in the nuclear sector (c. EUR
3m as stated in the CC). Book-to-bill came in at a healthy 0.99 leading to a
solid order backlog of EUR 121m.

Guidance confirmed: Management confirmed its FY24e guidance with sales
between EUR 335 - 350m and adj. EBITDA in the range of EUR 35 - 45m. Supported
by a strong H1 and a solid order backlog, it seems plausible for R. Stahl to
reach its guidance in our view (eNuW: sales EUR 349; adj. EBITDA EUR 40m). Even
more importantly, R. Stahl's mid-term prospects remain bright as the company
strongly benefits from (1) its superior market share along the LNG value
chain (liquefaction and shipping: 75%, natural gas production: 50% and
regasification 25%), (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.

Hence, R. Stahl is well positioned to gradually improve margins, returns and
cash flow generation. We reiterate our BUY rating with an unchanged EUR 29 PT,
based on DCF.

You can download the research here: http://www.more-ir.de/d/30411.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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1964455 09.08.2024 CET/CEST

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