Märkte & Kurse

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Original-Research: Netfonds AG - from NuWays AG

21.03.2025 / 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 Netfonds AG

     Company Name:                Netfonds AG
     ISIN:                        DE000A1MME74

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        21.03.2025
     Target price:                EUR 78.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Frederik Jarchow

Strong FY24 prelims // Growth to continue; chg

Topic: Netfonds reported strong FY24 prelims beating our expectations for
sales, while AuA and EBITDA were bang in line with estimates. In detail:

Gross sales came in at EUR 238m (23% yoy), above our estimate of EUR 230m. Key
driver was the Regulatory & Technology business with an impressive 71% yoy
growth resulting in EUR 134m (vs eNuW: EUR 122m) overcompensating for the softer
Wholesale business that declined by 11% yoy to EUR 101m (vs eNuW: EUR 105m) and
the Miscellaneous business (-53% yoy to EUR 2.3m vs eNuW: EUR 3.3m). The overall
topline growth was mainly fueled by AuA growth of 19% to EUR 28.3bn (vs eNuW:
EUR 28.3bn). Thanks to scale effects, the material expenses ratio should have
declined to 80.7% (vs 81.0% in FY23) resulting in net sales of EUR 46m (17%
yoy vs eNuW: EUR 44m) that were above the guidance range of EUR 41-43m.

EBITDA stand at EUR 8.4m (71% yoy), in line with our estimate of EUR 8.5m,
mainly driven by the sound topline development compensating for higher than
anticipated OPEX of EUR 37.6m (9% yoy vs eNuW: EUR 35.6m) that should have been
a result of increasing personnel expenses (18% yoy to EUR 24.7m vs eNuW: EUR
23.7m) and decreasing other operating expenses (-5% to 13.0m vs eNuW: EUR
11.9m). Again, relatively to gross sales, the OPEX ratio decreased
significantly to 15.8% (vs 17.9% in FY23). EBT came in at EUR 2.2m (9% yoy vs
eNuW: EUR 1.7m) as a result of EUR 4.1m D&A and a financial result of EUR 0.1m.

With a strong finish in FY24, Netfonds continued the growth of the last
years. Thanks to further increasing AuA´s and AuM´s, driven by inflows as
well as the strong performance of stock markets in Q1´25, topline should
continue to grow. The anticipated growth should be strongly supported by
Netfonds proprietary, 360° finfire platform that is seen to fuel
consolidation of the insurance broker market that is, in contrary to the
investment adviser market, still highly fragmented. We consider finfire to
remain the Groups key mid- to long-term growth and scalability driver.

For FY25 we expect EUR 31.8bn AuA (thereof EUR 5bn more profitable AuM) leading
to EUR 54.7m net sales (EUR 263m gross sales) and EUR 16.2m EBITDA, in line with
managements guidance of EUR >50m net sales and "a disproportionately high
increase in EBITDA and EBIT".

BUY with an unchanged PT of EUR 78.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32040.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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2104164 21.03.2025 CET/CEST

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