Märkte & Kurse

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Original-Research: Netfonds AG - from NuWays AG

13.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Netfonds AG

     Company Name:               Netfonds AG
     ISIN:                       DE000A1MME74

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       13.08.2024
     Target price:               EUR 74.00
     Last rating change:
     Analyst:                    Frederik Jarchow

AuA and AuM hit new all-time high

Topic: With 26.2bn assets under administration (AuA) and EUR 3.3bn assets
under management (AuM), Netfonds reached new record levels being well above
our estimates.In detail:

Steep growth trajectory to continue. With an absolute growth of EUR 2.6bn in
AuA YTD (+10%; 15% yoy) to EUR 26.2bn in Q2, Netfonds is well above our
estimates of EUR 25.7bn and should easily reach our estimates for FY24 of EUR
27bn. Even better, the high margin AuM increased to EUR 3.3bn end of Q2 (20%
YTD; 18% yoy), in line with our estimates for Q2 of EUR 3.2bn and on track for
the anticipated EUR 4.0bn in FY24.

Strong H1 figures ahead: After the record Q1 figures with AuA of EUR 25.1bn
and gross sales of EUR 56m Netfonds hit new all-time highs in Q2 and should
also have continued its sales growth additionally fueled by 1) value
accretive smaller transactions (i.e. MFK and Comfort Finance) for very
reasonable prices (eNuW: 4-8x EBITDA) for its advisor network VB-Select, 2)
the initiation of an own money market fund with already above EUR 75m end of
Q2 and 3) the acquisition of an umbrella in Luxembourg. We conservatively
expect EUR 56m in gross sales (20% yoy), EUR 10.5m in net sales (10% qoq, 9%
yoy) and EUR 1.6m in EBITDA (78% qoq; 10% yoy). Q2 figures should come out end
of August.

Consolidation of the insurance brokerage market in full swing. Apart from
the strong operating performance, the Groups proprietary, 360° finfire
platform is seen to fuel the market consolidation especially in the
insurance broker market that is, in contrary to the investment adviser
market, still highly fragmented. Thanks to finfire, the selling and managing
of insurance products is much easier, unlocking enormous cross-selling
potentials, as the already onboarded investment adviser can additionally
offer a wide range of insurance products to its customers. finfire hence
remains the company´s key mid- to long-term growth and scalability driver.
The expected strong organic growth momentum is seen to be accompanied by
further value-accretive M&A deals that should come at very reasonable
prices.

Overall, we see Netfonds well on track to reach its mid-term target of EUR 59m
net sales (vs eNuW: EUR 59m) and EUR 23m EBITDA (vs eNuW: EUR 20m) by FY26.

BUY with an unchanged PT of EUR 74.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/30443.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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1966385 13.08.2024 CET/CEST

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