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: Roadshow Feedback
Empfehlung: BUY
seit: 20.11.2023
Kursziel: EUR 34,00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Christian Sandherr

RS feedback: Strong free cashflows to support new investments

Topic: On Friday, we hosted a digital roadshow with the CEO of INDUS. Here
are the key takeaways:

Free cashflow from continuing operations more than quadrupled yoy with EUR
106.1m at 9M 2023 (9M 2022: EUR 22.2m). Going forward, management aims to
further reduce the working capital intensity to more normalized levels of
25-27% in Q4. Hence, FCF generation looks set to significantly outperform
the annual target of EUR 100m (eNuW: EUR 126m).

INDUS plans to invest EUR 50-70m next year in strategic acquisitions. The
company wants to sharpen its focus on global megatrends like energy
efficiency, recycling and agriculture engineering. Positively, valuation
multiples in the PE market came down since 2021 as buyer hesitance in
connection with increased financing costs prevailed.

Order intake is set to remain at a strong level. Particularly, the
subsidiary MBN Maschinenbaubetriebe Neugersdorf GmbH showed a positive
dynamic in its order intake. The manufacturer for final vehicle assembly
systems secured large orders from BMW and Audi for new factories in the US,
thus creating sound visibility on future earnings.

Positive price effect to revert. In FY23, INDUS benefited from lower
material prices, especially in the Materials segment, which led to a
segment EBIT margin of 10.4% at 9M. On group level, the material cost ratio
declined by 4.3pp to 45.9%. However, maintaining double-digit margins in
the segment will be challenging, as customers are starting to renegotiate
in light of the deflating price levels.

Wage inflation remains an issue. After the personnel expense ratio rose by
1.2pp yoy to 28.6% at 9M, further wage increases are in the books as unions
are increasing the pressure. For example, the German labor union IG Metall
recently started the negotiation for the steel industry demanding an 8.5%
salary increase. As INDUS employs c. 10,000 employees of which c. 7,000 in
Germany, management hence expects further pressure related to wage
inflation in the upcoming year (eNuW: +0.27pp).

Despite the aforementioned short-term headwinds, INDUS remains attractively
priced trading at only 4.5x EV/EBITDA 2023e, which is 36% below its
historical average. We reiterate our BUY rating with a new PT of EUR 34 (old:
EUR 36) based on FCFY 2024e.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28335.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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Quelle: dpa-AFX