Märkte & Kurse

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Original-Research: ASMALLWORLD AG - from NuWays AG

14.03.2025 / 09:06 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
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Classification of NuWays AG to ASMALLWORLD AG

     Company Name:                ASMALLWORLD AG
     ISIN:                        CH0404880129

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        14.03.2025
     Target price:                CHF 2.80
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

FY'24 out, focus on member growth; chg. est & PT

Topic: ASW reported mixed FY'24 results and provided a guidance for FY'25e
which is below market expectations due to the delayed launch of its
rebranding and the free membership option. In detail:

FY'24 results weaker on sales, better on EBITDA. The completion of its
business model transformation to a free membership and an expansion of
offerings, has become visible in FY'24 results. Sales arrived
at CHF 20.9m, below expectations (eNuW: CHF 23.5m) and the ASW's guidance
(CHF 23-25m) due to a delayed launch of the new brand and the free
membership option in H2, which was originally intended
for early Q3 but launched in Nov'24 and led to less growth than expected. As
this is only a periodic effect, FY'24 sales nevertheless declined slightly
by 2% yoy (H2: -7% yoy). This goes hand in hand with a delayed marketing
campaign, which was the reason why EBITDA came in at CHF 1.4m (6.6% margin,
-3.2pp yoy), better than our estimate (eNuW: CHF 1m) and the guidance (CHF
1-1.2m).

Membership growth ahead of plan and with strong momentum. ASW reported 18k
net additions to now 88.2k members, largely exceeding the guidance (73-74k)
and our estimate (eNuW: 73.7k) following the free membership option launched
in Nov'24. Despite it being delayed, the member intake has shown to be very
successful. One of the companies main objectives is to scale the member base
first and monetize them afterwards with their highly curated luxury travel
offerings, such as hotel bookings, private community events, air mile plans
& optimizations and bespoke travel services. However, at the expense of
temporarily muted growth and profitability. Member intake seems to remain
strong with ongoing momentum, as the company expects an additional 32-37k
members during FY'25e, expanding the member base to 120-125k by Y/E'25e.

Guidance below expectation: Following the delay and with still additional
services to be offered, it also needs some time for members to become
acquainted with the community and ASW's services. Consequently, the
monetization takes more time than expected, which is why ASW guides for
5-10% yoy sales growth and EBITDA expansion by 2-10% yoy, which is below our
old estimates.

In sum, ASW's business transformation remains in full swing, however at a
slower speed than initially anticipated. Consequently, we reduce our
estimates, but maintain a positive view on the stock. BUY with new PT of CHF
2.80 (old: CHF 4.00), based on DCF.

You can download the research here: http://www.more-ir.de/d/31974.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
++++++++++
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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2100662 14.03.2025 CET/CEST

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