Original-Research: beaconsmind AG (von NuWays AG): Buy
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Original-Research: beaconsmind AG - from NuWays AG
09.10.2024 / 09:05 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to beaconsmind AG
Company Name: beaconsmind AG
ISIN: CH0451123589
Reason for the research: Update
Recommendation: Buy
from: 09.10.2024
Target price: EUR 16.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
Strong growth and profitability in H1 driven by acquisitions; chg.
Topic: beaconsmind released its H1 '24 management report, showing
substantial top-line growth driven by the numerous acquisitions that were
performed in 2022 and 2023. Here are the key takeaways.
H1 '24 sales increased by 122% yoy to CHF 5.9m (eNuW: CHF 6.2m; eNuW: 70%
recurring), which was mainly driven by the acquisitions of FREDERIX,
Socialwave, Netopsie, T2 and Kadsoft. In fact, revenues from T2 and Kadsoft
were consolidated for the first time, as the deal has been closed at YE '23.
In 2023, T2 and Kadsoft recorded combined revenues of EUR 3.5m.
H1 adj. EBITDA came in at CHF 1.1m (eNuW: CHF 1.0m) , showing the positive
impacts of the acquisitions. The adjustments of CHF 0.6m were mainly
attributed to legal and personnel expenses in relation to the acquisitions
of FREDERIX, Socialwave, Netopsie, T2 and Kadsoft.
Moreover, management reiterated the run rate for 2024, targeting sales of
CHF 12.9m as well as an adj. EBITDA of CHF 2.5m. This should be achievable
for beaconsmind given the strong H1 performance as well as several new
contracts that were closed during the first half of the year.
Speaking of which, beaconsmind continues to gain new customers. For example,
the company will provide the Semperoper in Dresden with its projector
technology (eNuW: CHF 0.2m sales), while retailer Müller implemented
beaconsminds CloudWifi solutions in more than 770 supermarkets in the DACH
region and Spain. Moreover, beaconsmind gained ECE group, a leading shopping
center operator, as a customer (eNuW: CHF 0.5m recurring sales). Just
recently, the company also announced to have intensified its collaboration
with a leading European retailer, who will apply the beaconsmind Auto App
Login at c. 940 locations in Europe.
Regional expansion. On top of this, beaconsmind in May announced its
expansion into the Spanish market with the establishment of an own entity.
With this, the company responds to the high penetration rate of digital
marketing solutions in Spain, especially in hospitality and gastronomy.
Management said to target annual revenues of CHF 600k and expected
significant growth potential going forward.
New tech partnership. In Q2, beaconsmind announced to have entered into a
partnership with at-visions (digital solutions for hospitality) and lokalee
(AI based concierge solutions). The partnership aims to provide a fully
integrated solution for retail and hospitality customers in the MENA region,
focusing on a comprehensive technology value chain in order to enhance guest
experience while providing an integrated hard- and software solution. Given
beaconsmind's existent expertise in the hospitality segment, we expect
significant up-selling potential from this initiative.
Besides organic growth, we expect beaconsmind to continue its buy and build
strategy with further acquisitions to come. While the company has not been
active on the M&A market in 2024 thus far, we expect at least one further
acquisition until H1 '25e.
The stock remains a BUY with a new PT of EUR 16 (old: EUR 15) based on DCF.
You can download the research here: http://www.more-ir.de/d/31011.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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2004651 09.10.2024 CET/CEST
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