Märkte & Kurse

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

08.01.2025 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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 R. Stahl AG

     Company Name:                R. Stahl AG
     ISIN:                        DE000A1PHBB5

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        08.01.2025
     Target price:                EUR 25.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Mixed FY25e outlook due to low order books

Topic: After a convincing FY24e, we see another solid year for R. Stahl
ahead. However, due to a low order book and an uninspiring demand in Q3,
sales and earnings could potentially be soft in H1'25e.

R. Stahl started with a solid order intake of EUR 181m (book-to-bill 1.04x)
into the first half of FY24e before demand came down to EUR 74m in Q3
(book-to-bill 0.85x). A major reason is the still struggling European
chemical industry where investments remain on a historically low level. In
addition, larger decisions were delayed during the months before the
presidential election in the US. Nevertheless, there should be a catch-up
effect in Q4'24e and Q1'25e. Beyond that, president-elect Trump is expected
to be a positive driver for the oil and gas industry.

While sales in Q3 still benefited from a sound backlog in the oil and gas
industry in Americas, the order book has come down considerably to EUR 108m
end of 9M'24 (vs. EUR 132m 9M'23). Consequently, we expect to see sales coming
down for Q4'24e (eNuW: EUR 83m). Further, due to the lower visibility, H1'25e
is now more dependent on new order intake in Q4'24 and H1'25e. For FY25e, we
expect sales to slightly increase to EUR 355m, despite a potentially weaker
H1.

We also expect the adj. EBITDA margin to improve slightly (eNuW: 10.8%),
thanks to the EXcelerate strategy program. The implementation of the program
created one-time costs of c. EUR 3.7m in 9M'24 (c. EUR 4.5m in total until
9M'24) and should amortize within 1-2 years as stated in the Q3 CC. On the
other hand, pressure from wage inflation should persist throughout FY25e,
although we expect the overall headcount to slightly decrease. Adj. EBITDA
is seen to stay at a solid level of EUR 38m (eNuW).

Even though the upcoming quarters might be challenging, we continue to be
optimistic in the mid- to long term. R. Stahl is not losing market share due
to its positive brand recognition and it's just a matter of time until the
demand for R. Stahl's explosion protection products recovers back.

We reiterate our BUY rating with an unchanged PT of EUR 25 based on DCF.

You can download the research here: http://www.more-ir.de/d/31591.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.
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2063199 08.01.2025 CET/CEST

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