Original-Research: Cantourage Group SE (von NuWays AG): BUY

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Original-Research: Cantourage Group SE - from NuWays AG

06.12.2024 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Cantourage Group SE

Company Name: Cantourage Group SE

ISIN: DE000A3DSV01

Reason for the research: Update

Recommendation: BUY

from: 06.12.2024

Target price: 11.50

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Full steam ahead, FY24 guidance raised; PT up

Topic: Cantourage raised its FY24e guidance following continued sequential

growth throughout Q4 with November sales reaching EUR 7.2m, exceeding the

previously strongest quarter by 31%.

Cantourage announced a particularly strong November sales figure of EUR 7.2m,

a 31% increase compared to October (previous annual high). With this, Jan.

to Nov. sales stand at EUR 42.9m, a roughly 80% increase compared to the full

year 2023 figure. The driver behind this strong growth is the

reclassification of medical cannabis (no longer qualified as a narcotic) in

Germany, which took effect at the end of April and hence made obtaining a

prescription notably easier. This is also visible in the estimated number of

cannabis patients, which is seen to have doubled to 0.5-0.6m. Further,

Cantourage is also experiencing a sharp increase in demand at its treatment

facility in UK.

Taking into account continued strong demand throughout the remainder of the

year as stated in yesterday's press release, the company should be on track

to reach Q4 sales of some EUR 19m (eNuW), a significant acceleration compared

to before the legislative changes (Q1 sales of EUR 6.2m). The strong sales

development is seen to increasingly feed down to the bottom line with a Q4

EBITDA margin expectation of 8.1% (eNuW) compared to a slightly negative

figure last year.

More importantly, we also expect Cantourage to begin generating positive

free cash flows. For FY24e, the company is seen to report EUR 1.5m, a notable

improvement compared to FY23's EUR -3.1m.

As a result of the strong operational ytd. performance management increased

its FY24e guidance, now expecting EUR 46-50m sales (eNuW EUR 49.2m) and EUR 3-4m

EBITDA (eNuW EUR 3.6m); old guidance: at least EUR 40m sales and EUR 2m EBITDA.

While EBIT should still be slightly negative, it is important to note that

is only due to the planned amortization of the operating GmbH value that was

transferred into the SE as part of the listing in 2022.

Business to further scale during FY25e and beyond. Thanks to unbroken demand

on the back of growing patient numbers and further de-bottlenecking at its

processing sites, Cantourage should be well positioned to remain at the

forefront of the dynamic market, reflected by our sales growth estimates.

BUY with a new EUR 11.50 PT (old: EUR 10.00) based on DCF.

You can download the research here: http://www.more-ir.de/d/31501.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2045487 06.12.2024 CET/CEST

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