Original-Research: Nynomic AG (von NuWays AG): Buy
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Original-Research: Nynomic AG - from NuWays AG
13.11.2024 / 09:05 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Nynomic AG
Company Name: Nynomic AG
ISIN: DE000A0MSN11
Reason for the research: Update
Recommendation: Buy
from: 13.11.2024
Target price: EUR 44.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Muted prel. Q3 in line with expectations // guidance confirmed
Preliminary Q3 sales stood at EUR 24.3m, a roughly 21% yoy decline (9M: down
14% yoy) as expected and in line with previous quarters. The key drivers
behind this were delayed product call-offs and certain budget-related
project postponements into FY25e. This is the case for all three segments,
the first time in several years. For instance, within Green Tech, end
customers are reluctant to purchase high-end vehicles (e.g. combine
harvesters) and systems. Within Clean Tech, customers in traditional
silicon-based sectors are experiencing delays in new projects, as well as
upgrades to existing systems, due to changes in the AI and memory markets.
Order intake in the third quarter came in at EUR 19.4m, largely flat yoy,
which brings the company's order book to EUR 54.6m at the end of September.
With this, preliminary Q3 EBIT decreased sharply (76% yoy) to only EUR 0.9m,
delivering a 3.7% margin (9M EUR 5.1m, 7.1% margin), reflecting the lower
fixed cost coverage.
Confirmed FY24e guidance (EUR 100-110m sales and 7-9% EBIT margin) implies a
strong Q4. As previously communicated, management expects a
disproportionally strong Q4 due to confirmed call- off dates of formerly
delayed orders. Hence, the mid points of the guidance imply EUR 33m sales (-4%
yoy) and a 11% EBIT margin (-9.7pp yoy).
Nynomic's resilience amid current challenges is evident, with no order
cancellations and steady demand, signaling these issues are likely
temporary. Some EUR 11m in orders originally expected for H2 are now set for
recognition in 2025. Beyond FY24e, Nynomic is positioned for strong growth
throughout the next few years. By FY26e, we expect EUR 141m sales and an EBIT
margin exceeding 15%, which is driven by several factors: deferred revenue
from postponed orders, recent product launches (such as TactiScan,
LabScanner Plus, and FETTE's tablet press), and a recovery in core markets
like semiconductors, medical devices, and pharmaceuticals.
Management reaffirms its mid-term growth targets, which were set last year,
and expects sustained growth in the 3-5 year horizon. The company is
targeting EUR 200m in sales and an EBIT margin of 16-19%, supported by a mix
of organic expansion and strategic acquisitions. This focus on both internal
innovation and complementary acquisitions positions Nynomic well to
capitalize on growing industry demand, making it an appealing investment as
it heads into a promising phase of growth.
Conclusion: Although Nynomic faces short-term challenges, leading to a
second transition year, its underlying strength and growth path remains
attractive. Investors should consider the expected recovery in 2025, driven
by the realization of postponed orders and a robust lineup of new projects.
We hence confirm our BUY rating with an unchanged EUR 44 PT based on DCF.
You can download the research here: http://www.more-ir.de/d/31295.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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2028581 13.11.2024 CET/CEST
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