Märkte & Kurse

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Original-Research: Avemio AG - from GBC AG

08.07.2025 / 08:43 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 GBC AG to Avemio AG

     Company Name:                Avemio AG
     ISIN:                        DE000A40KY59

     Reason for the research:     Research study (Anno)
     Recommendation:              BUY
     Target price:                15.00 EUR
     Target price on sight of:    31.12.2025
     Last rating change:
     Analyst:                     Cosmin Filker; Niklas Ripplinger

Transformation into a media technology group with a focus on high-margin
digital revenues

Avemio AG suffered a decline in business development in the past financial
year 2024. Sales fell by 11.4% to EUR 87.86 million (previous year: EUR 99.15
million). As a provider of customised solutions for the professional
production of film, TV, and video content, the company in particular
suffered from customers' continued reluctance to invest due to the economic
situation. Furthermore, the manufacturers' pace of innovation did not
accelerate, which meant that customers of Avemio AG lacked incentives to
buy.

Looking at the two segments, however, it can be stated that only the retail
segment was responsible for the Group-wide decline in sales, with sales
totalling EUR 78.8 million (previous year: EUR 96.1 million). In the
higher-margin digital segment, the company benefited from the first
full-year inclusion of sales from MoovIT/MSP, which was acquired in 2023,
and reported a significant increase in sales to EUR 8.5 million (previous
year: EUR 2.9 million). The acquired companies LEA/Infinment, which have been
consolidated into Avemio AG since 1 August 2024, only contributed low
inorganic growth with a revenue contribution of EUR 0.8 million.

The reduction in sales is also reflected in a decline in EBITDA to EUR -0.93
million (previous year: EUR -0.05 million). On the one hand, gross profit
improved significantly due to the higher digital share, while on the other
hand, personnel expenses increased due to the full-year inclusion of MoovIT.
Avemio AG also reported a decline in earnings after taxes to EUR -6.54 million
(previous year: EUR -3.45 million). This was largely due to goodwill
amortisation with no effect on liquidity, which is recognised as scheduled
in accordance with HGB accounting. As a result of M&A activity in recent
years, goodwill amounted to EUR 21.17 million as at 31 December 2024, while
total amortisation in the past financial year amounted to EUR 3.79 million.

For the current financial year 2025, the Avemio Executive Board expects a
cautious reversal of the reluctance to invest on the customer side and
anticipates growth momentum from the second half of the year in particular.
The digital segment, on the other hand, should benefit from the launch of
new products. The focus here is on the launch of Cara.One and helmut.cloud,
which should also contribute to sales growth from the second half of the
year on. Overall, the company anticipates slight sales growth. This should
be accompanied by the effects of the cost-cutting programme, which is set to
save EUR 1.5 million annually from 2026. Against this backdrop, EBITDA should
already be positive again in the current financial year 2025.

Based on this, we expect sales to increase by 4.1% to EUR 91.50 million in
2025 and expect sales growth to accelerate in the coming financial years. We
are assuming increasing momentum in the retail segment and anticipate strong
sales growth in the digital segment. The increasing importance of the
digital segment and the complete development of the cost-cutting programme
should enable double-digit EBITDA margins again by the end of our forecast
period (FY 2027).

As part of our DCF valuation model, we have determined a target price of EUR
15.00. Based on the current share price, we assign a 'BUY' rating.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=3ac9c047cdf00237954d88e668410688

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Disclosure of potential conflicts of interest pursuant to Section 85 WpHG
and Art. 20 MAR The company analysed above has the following potential
conflict of interest: (5a,7,11); A catalogue of potential conflicts of
interest can be found at
https://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Date and time of completion of the study: 04.07.2025 (11:15 am)
Date and time of publication of the study: 07.07.2025 (10:00 am)

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2166506 08.07.2025 CET/CEST

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