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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