Original-Research: INDUS Holding AG (von NuWays AG): BUY

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Original-Research: INDUS Holding AG - von NuWays AG

Einstufung von NuWays AG zu INDUS Holding AG

Unternehmen: INDUS Holding AG

ISIN: DE0006200108

Anlass der Studie: Update

Empfehlung: BUY

seit: 17.01.2024

Kursziel: 34.00

Kursziel auf Sicht von: 12 Monaten

Letzte Ratingänderung:

Analyst: Christian Sandherr

Another promising year for INDUS

Topic: While INDUS should experience some margin pressure in 2024e, the

EBIT margin is still seen to come in at 8.0%, which is the highest

operating margin since 2017. With an appealing dividend yield of 5.5%

(eNuW) and an attractive valuation of only 4.6x EV/EBITDA, the stock

remains a buy.

Normalizing margins: In FY23, INDUS benefited from lower material prices,

especially in the Materials segment, which is seen to lead to a FY23e EBIT

margin of 8.6%. On group level, the material cost ratio declined by 1.6pp

to 46.8%. However, this positive price effect should revert in FY24e, as

customers are starting to renegotiate in light of the deflating price

levels. In addition, wage inflation remains an issue for FY24e. After the

personnel expense ratio rose by 1.1pp yoy to 28.5% at FY23e, further wage

increases are in the books as unions are increasing the pressure. Hence, we

expect the EBIT margin in FY24e to decrease by 0.3pp (eNuW FY23: 8.3%),

which is still the highest margin since 2017.

Supply-chain issues solved: After the start of the Covid19 pandemic, global

supply-chains were significantly dislocated, jeopardizing normal

operations. This also affected the portfolio companies of INDUS during the

previous fiscal years. However, at the end of FY23, supply-chain issues

were largely solved and not a single portfolio company was materially

affected.

Portfolio realignment completed: As part of its 'PARKOUR' efficiency

program, INDUS decided to discontinue the majority of its highly

loss-making automotive-related business. While SMA filed for insolvency in

Oct.'22, management sold SCHÄFER economically effective on July 31, 2023,

and SELZER on August 31, 2023. SELZER alone is seen to rake up a EUR 22m loss

while generating EUR 65m in sales during FY23e.

Appealing dividend yield: Caused by the weak performance of the

automotive-related companies SELZER and SCHÄFER, dividends for the last two

years came in rather low compared to previous years. Due to the divestment

of the automotive business and a successful operating performance in FY23,

we expect a dividend of EUR 1.2 (eNuW) per share for the recent fiscal year

(FY22: EUR 0.8). Based on yesterday's closing price, this would lead to an

appealing dividend yield of 5.5% (FY22: 3.6%).

INDUS remains attractively priced trading at only 4.6x EV/EBITDA 2023e,

which is 34% below its historical average. We reiterate our BUY rating with

an unchanged PT of EUR 34 based on FCFY 2024e.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/28691.pdf

Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden

www.nuways-ag.com/research.

Kontakt für Rückfragen

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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-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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