Märkte & Kurse

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Original-Research: Netfonds AG - from NuWays AG

24.06.2025 / 09:00 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:                        24.06.2025
     Target price:                EUR 78.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Frederik Jarchow

Strong start into FY25 // Guidance upgrade; chg

Netfonds reported promising Q1 figures indicating that the com<pany is well
on track to achieve its FY25 guidance. In detail:

Gross sales came in at EUR 64.5m (+15% yoy), above our estimate of EUR 62,9m.
Key driver was again the AuA growth that stood at EUR 28.5bn after Q1 (vs EUR
28.3bn in FY24) in line with our estimates (eNuW: EUR 28.5bn). Thanks to scale
effects, material expenses should have declined relatively to sales to 81.4%
(vs 83.1% in Q1´24) resulting in net sales of EUR 12.0m (26% yoy vs eNuW: EUR
11.6m).

EBITDA stood at EUR 2.8m (211% yoy), above our estimates of EUR 2.4m, mainly
driven by the sound topline development. OPEX should have come in as
expected (eNuW: EUR 6.0m personnel expenses and EUR 3.2m other OPEX. EBT came in
at EUR 1.4m (vs EUR -0.4 in Q1´24y vs eNuW: EUR 1.1m) as a result of stable D&A
(eNuW: EUR 1.0m) and a financial result that is burdened by the interest for
the bond (eNuW: EUR -0.4m).

Overall, Q1 figures mark a strong start into the year. On the back of EUR
28.5bn AuA in Q1´24, topline should continue to grow in Q2 as AuA growth
usually materializes with a delay of one quarter. Even better, Netfonds
announced that AuA reached a new record level of EUR 29.3bn, which gives us
already visibility into Q3. As we expect the more profitable AuM to grow
more dynamically, this alone should expand EBITDA margins.

As the anticipated growth should be strongly supported by Netfonds
proprietary 360° finfire platform, Netfonds should enjoy the typical scale
effects of a growing platform business. Moreover, finfire is seen to fuel
the consolidation of the insurance broker market that is, in contrary to the
investment adviser market, still highly fragmented. Consequently, we
continue to consider finfire to remain the Groups key mid- to long-term
growth and scalability driver.

For FY25 we still expect EUR 263m gross sales, EUR 54.7m net sales and an EBITDA
of EUR 16.2m. While the renewed topline guidance of EUR 260-270m gross sales and
EUR 52.5-54m net sales is broadly in line we consider the EBITDA guidance of EUR
12-13.5m that is not meeting our expectation, as rather conservative with
room for an update until eoy.

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

You can download the research here: http://www.more-ir.de/d/32902.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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2159332 24.06.2025 CET/CEST

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