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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