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

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Original-Research: Nynomic AG - from NuWays AG

09.10.2024 / 09:02 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: 09.10.2024
Target price: EUR 44.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

H2 marked by postponements, bright mid-term prospects; chg

Topic: Nynomic cut its FY24 guidance due to delayed order intakes and
project postponements but should return to strong growth from FY25 onwards
as reflected by the confirmed mid-term guidance.

Recent years underpin the importance of the second half of years for Nynomic
(FY23: 60% of sales, 70% of EBIT). Due to revenue shifts into FY25 as a
result of delayed order intakes and project postponements from customers,
management cut its FY24 guidance to EUR 100-110m sales (old: slight yoy
increase vs EUR 118m; eCons: EUR 120m) and a 7-9% EBIT margin (old: yoy margin
increase vs 13.1%; eCons: 13.7%).

For the first time in several years, all three segments are experiencing
headwinds. For instance, within Green Tech, end customers are reluctant to
purchasing 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.

Importantly, the absence of order cancellations, strong underlying demand,
and the continued development of customer projects provide reassurance that
these issues are temporary. In fact, we expect EUR 11m of orders, intially
planned for H2 this year to be recognized in H1 2025.

Looking beyond FY24, Nynomic should return to strong growth. Until FY26e, we
expect sales to increase to EUR 141m with an EBIT margin of above 15%, carried
by (1) the revenue recognition of delayed orders to the tune of EUR 11m
(eNuW), (2) recent product launches ramping up/gaining traction (e.g.
TactiScan, LabScanner Plus and FETTE's tablet press), (3) generally
revitalizing end markets such as semiconductors and medical and
pharmaceutical applications and (4) new product launches.

Unchanged mid-term guidance. Management continues to regard the
mid-term-guidance (3-5 year time horizon), which was issed last year as
intact, expecting sales to reach EUR 200m with a 16-19% EBIT margin, driven by
a combination of strong organic growth and add-on acquisitions.

Conclusion: While short-term headwinds necessitate a modest downgrade to the
2024 forecast, the core fundamentals and growth trajectory for Nynomic
remains compelling. Investors should focus on the expected rebound in 2025,
carried by the recognition of delayed orders and the strong pipeline of new
projects. We confirm our BUY rating with a new EUR 44 PT (old: EUR 50) based on
DCF.

You can download the research here: http://www.more-ir.de/d/31013.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
++++++++++
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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2004653 09.10.2024 CET/CEST

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Quelle: dpa-AFX