Märkte & Kurse

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Original-Research: Nynomic AG - from NuWays AG

21.08.2024 / 09:01 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
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Classification of NuWays AG to Nynomic AG

     Company Name:               Nynomic AG
     ISIN:                       DE000A0MSN11

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       21.08.2024
     Target price:               EUR 50.00
     Last rating change:
     Analyst:                    Christian Sandherr

Q2 prelims: Improving margins despite weak top-line; chg.

Topic: While Q2 sales was burdened by the challenging macro environment,
Nynomic managed to improve its profitability. Following a transitional FY24,
the company should return to growth in FY25.

While Q2 sales grew 7.4% qoq to EUR 24.7m, the yoy comparison reveals a
notable decline of 21% (H1 sales are down 9.7% yoy) due to a high comparable
base (Q2 '23 grew 20% yoy due to catch up effect from order postponements).
In addition, revenue growth was burdened by a general order reluctance
across the group's segments as visible in the weak order momentum during
last year's H2, which was down roughly 47% at EUR 38m, burdened growth.
Importantly, the tide has begun turning with order intake in Q1 up 25% and
Q2 up 15% yoy. The order backlog at the end of H1 stands at almost EUR 60m.

Favourable margin development. Despite the weak sales development, the EBIT
margin in Q2 improved by 60bps yoy to 10.5% (H1 '24 +10bps), which should
predominantly be an improving product mix and an increased focus on higher
margin projects.

Improving momentum in H2. Similar to last year, 2024 is also seen to be
back-end loaded (eNuW: H2 with 60% of FY24 sales). This is also reflected by
the confirmed FY24 guidance of single-digit yoy sales growth and a margin
improvement. Yet, we now see growth rather at the lower end (eNuW: 2%),
implying 11.5% yoy growth for the second half of the year (driven by a
significant demand increase within Clean Tech) with an EBIT margin of 16.1%
(-50bps yoy).

Accelerating growth from FY25 onwards. During the mid-term, we expect
Nynomic to return to double-digit organic growth rates supported by recent
product launches, re-vitalized demand from several end markets (e.g. medical
and pharmaceutical applications) and several other products gaining traction
(e.g. TactiScan). With this, EBIT margins are also seen to strongly improve
(FY26e: 15.7%).

Valuation remains attractive following the recent share price weakness.
Taking into account our reduced estimates, Nynomic trades on 9/6.5x EV/EBIT
(FY24/25e), which we regard as justified in light of the underlying growth
prospects during the next few years. We reiterate our BUY rating but trim
our price target to EUR 50 (old: EUR 52), based on DCF.

You can download the research here: http://www.more-ir.de/d/30579.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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1971883 21.08.2024 CET/CEST

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