Märkte & Kurse

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Original-Research: Netfonds AG - from NuWays AG

22.08.2024 / 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
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:                       22.08.2024
     Target price:               EUR 59.00
     Last rating change:
     Analyst:                    Frederik Jarchow

Solid Q2 preliminary figures above estimates

Topic: Yesterday, Netfonds reported strong preliminary Q2 figures above our
estimates on both, top- and bottom line. The upper end of the guidance seems
in reach. In detail:

  * Gross Sales grew by 20% yoy to EUR 56.5m, above out estimates of EUR 56m.
    Main driver was the strong AuA and AuM development with new record
    levels of EUR 26.2bn (+10% YTD; 15% yoy) and EUR 3.3bn (20% YTD; 18% yoy),
    both well above our estimates of EUR 25.7bn and EUR 3.2bn (eNuW old).
    Consequently, Netfonds should reach our estimates for FY24 of EUR 27bn AuA
    and EUR 4.0bn AuM easily.

  * EBITDA came in above estimates at EUR 2.0m (122% qoq, 37% yoy vs eNuW: EUR
    1.6m), mainly driven by the topline growth paired with stable OPEX
    compared to Q1, showing the strong operating leverage of the business
    model

Going forward, we see further sequential growth on the back of 1) value
accretive smaller transactions (i.e. MFK and Comfort Finance) for very
reasonable prices (eNuW: 4-8x EBITDA) 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. All that should start to materialize within
Q3/Q4´24. Hence, the confirmed FY24 guidance of EUR 220-230m in gross sales
and EUR 41.5-43m in net sales should be reached easily.

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 expected to be accompanied by
further value-accretive M&A deals that should come at very reasonable price.

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/30589.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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1972749 22.08.2024 CET/CEST

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