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Original-Research: Netfonds AG (von NuWays AG): Kaufen

03.06.2024
um 09:01 Uhr

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Original-Research: Netfonds AG - from NuWays AG

Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG
ISIN: DE000A1MME74

Reason for the research: Update
Recommendation: Kaufen
from: 03.06.2024
Target price: EUR 73.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Final FY23 figures below prelims // Strong start into 2024; chg.

Topic: Netfonds released final FY23 figures that fell short of prelims due
to one-off effects. Further, the company reported record Q1 prelims above
expectations, proofing that it is on track to reach its FY24 and mid-term
guidance. In detail:

FY23 gross sales came in at EUR 193m (+9% yoy vs prelims: EUR 197m), mainly
driven by AuC that grew by 11% to EUR 23.8bn (eNuW: EUR 23.2bn). Thanks to
material expenses that remained stable relatively to sales at 81% (vs 80.9%
in FY22) net sales grew by 9% yoy to EUR 39.4m, above prelims of EUR 37m.

EBITDA of only EUR 4.9m (-24% yoy), came in below prelims (EUR 6.2m), mainly
due to two one-off effects to the tune of EUR 1.7m stemming from a cancelled
software contract and from the at equity consolidation of two investments.
Total OPEX of EUR 34.4m (+17% yoy) was hence higher than the anticipated EUR
30.8m. EBT came in at EUR 0.7m (vs EUR 2m in FY22, vs prelims: EUR 2.2m)
resulting from EUR 3.6m D&A and a financial result of EUR 0.1m.

Looking into FY24, Netfonds kicked-off the year with a record quarter. The
company achieved gross sales of EUR 56m (20% yoy, 9% qoq), significantly
above our estimates of EUR 50m carried by AuC that exceeded EUR 25.1bn (19% yoy
vs EUR 23.8m in FY23). As material expenses should have remained rather
stable yoy, net sales grew by 18% yoy to 9.5m. Thanks to scale effects that
start to kick-in, EBITDA came in at EUR 0.9m (+125% yoy), bringing EBT into
positive terrain with EUR 0.3m (vs EUR -0.4m in FY22).

Going forward, record AuC after Q1, paired with stock markets that reached
new all-time highs in Q2, top- and bottom line should continue to grow in
H2, even without new AuC inflows that we consider as very likely. Further,
the Groups proprietary 360° finfire platform is seen to fuel consolidation
of the insurance broker market that is, in contrary to the investment
adviser market, still highly fragmented. Thanks to finfire, the selling and
managing of insurance products is much easier unlocking enormous
cross-selling potentials, as the already onboarded investment adviser can
additionally offer a wide range of insurance products to its customers.
finfire hence remains the companyŽs key mid- to long term growth and
scalability driver.

In order to reflect strong Q1 results, the bright market outlook and the
enormous (cross-selling) potential
arising from finfire, we reiterate BUY with an unchanged PT of EUR 73.00
(old: EUR 73.00), based on DCF.

You can download the research here:
http://www.more-ir.de/d/29935.pdf
For additional information visit our website
www.nuways-ag.com/research.

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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-------------------transmitted by EQS Group AG.-------------------

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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Netfonds AG

WKN A1MME7 ISIN DE000A1MME74