Original-Research: ASMALLWORLD AG (von NuWays AG): Buy

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Original-Research: ASMALLWORLD AG - from NuWays AG

14.03.2025 / 09:06 CET/CEST

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

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Classification of NuWays AG to ASMALLWORLD AG

Company Name: ASMALLWORLD AG

ISIN: CH0404880129

Reason for the research: Update

Recommendation: Buy

from: 14.03.2025

Target price: CHF 2.80

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

FY'24 out, focus on member growth; chg. est & PT

Topic: ASW reported mixed FY'24 results and provided a guidance for FY'25e

which is below market expectations due to the delayed launch of its

rebranding and the free membership option. In detail:

FY'24 results weaker on sales, better on EBITDA. The completion of its

business model transformation to a free membership and an expansion of

offerings, has become visible in FY'24 results. Sales arrived

at CHF 20.9m, below expectations (eNuW: CHF 23.5m) and the ASW's guidance

(CHF 23-25m) due to a delayed launch of the new brand and the free

membership option in H2, which was originally intended

for early Q3 but launched in Nov'24 and led to less growth than expected. As

this is only a periodic effect, FY'24 sales nevertheless declined slightly

by 2% yoy (H2: -7% yoy). This goes hand in hand with a delayed marketing

campaign, which was the reason why EBITDA came in at CHF 1.4m (6.6% margin,

-3.2pp yoy), better than our estimate (eNuW: CHF 1m) and the guidance (CHF

1-1.2m).

Membership growth ahead of plan and with strong momentum. ASW reported 18k

net additions to now 88.2k members, largely exceeding the guidance (73-74k)

and our estimate (eNuW: 73.7k) following the free membership option launched

in Nov'24. Despite it being delayed, the member intake has shown to be very

successful. One of the companies main objectives is to scale the member base

first and monetize them afterwards with their highly curated luxury travel

offerings, such as hotel bookings, private community events, air mile plans

& optimizations and bespoke travel services. However, at the expense of

temporarily muted growth and profitability. Member intake seems to remain

strong with ongoing momentum, as the company expects an additional 32-37k

members during FY'25e, expanding the member base to 120-125k by Y/E'25e.

Guidance below expectation: Following the delay and with still additional

services to be offered, it also needs some time for members to become

acquainted with the community and ASW's services. Consequently, the

monetization takes more time than expected, which is why ASW guides for

5-10% yoy sales growth and EBITDA expansion by 2-10% yoy, which is below our

old estimates.

In sum, ASW's business transformation remains in full swing, however at a

slower speed than initially anticipated. Consequently, we reduce our

estimates, but maintain a positive view on the stock. BUY with new PT of CHF

2.80 (old: CHF 4.00), based on DCF.

You can download the research here: http://www.more-ir.de/d/31974.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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2100662 14.03.2025 CET/CEST

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