Original-Research: The NAGA Group AG (von GBC AG): Buy

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Original-Research: The NAGA Group AG - von GBC AG

Einstufung von GBC AG zu The NAGA Group AG

Unternehmen: The NAGA Group AG
ISIN: DE000A161NR7

Anlass der Studie: Research Comment
Empfehlung: Buy
Kursziel: 9.10 Euro
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung:
Analyst: Cosmin Filker

Strong revenue growth and operating break-even achieved,
internationalisation and new products ensure further growth, price target
raised to EUR 9.10, Rating: BUY

Already in January 2021, The NAGA Group AG (short: NAGA) had published
preliminary figures for the past financial year 2020. On 26 July 2021, the
publication of the annual report confirmed the already known key data. With
sales revenues of EUR 24.35 million (previous year: EUR 7.62 million), the
previous year's figure was more than tripled. With the focus on online
brokerage, the market environment characterised by high volatility and thus
high transaction activity was an important driver for the company. In
addition, marketing activities were significantly expanded, which led to
increased awareness in a market that had already been growing strongly. The
number of customers improved to 43,646 (previous year: 25,376) and the
trading volume climbed to EUR 120 billion (previous year: EUR 41 bil-lion).
Despite expanded marketing activities, EBITDA improved to EUR 6.57 million
(previous year: EUR -9.17 million) and NAGA achieved a positive operating
cash flow of EUR 3.68 million (previous year: EUR -2.40 million) for the
first time.

With the publication of the annual report, NAGA management confirmed the
guidance for 2021, which was also communicated at the beginning of 2021.
With a significant increase in turnover to EUR 50 - 52 million, an EBITDA
in the range of EUR 13 - 15 million is to be generated. The figures
published by the company for the first half of 2021 prove that this
guidance is realistic. The total group turnover of EUR 24.5 million was
already at the level of the previous full year 2020 after six months. The
strong increase in the number of transactions to 4.8 million (previous
year: EUR 2.7 million) and the traded volume to EUR 132 billion (previous
year: EUR 50 billion) form the basis for this.

A continuation of this impressive growth course should not only be a
consequence of the expected continued high market volatility. In addition
to increasing marketing activities and pushing customer support and further
investments in user experience, the company plans to market Naga Trader
globally. Approval processes are currently underway for entry into
Australia, South America and Vietnam. In addition, new product launches are
also expected to contribute to growth. In the third quarter of 2021, NAGA
Pay, an app that connects an IBAN account, a Visa debit card, a share
deposit account and physical crypto wallets, will be launched. Another
product will be NAGA Pro, which is aimed specifically at users who have
their own trading community. These 'influencers' could provide additional
customer growth, especially for the copy- trade function. The financing of
the growth targets is secured with the framework agreement concluded with
Yorkville Advisors in the amount of EUR25 million at the beginning of 2021.

Compared to our last Research (dated 13 January 2021), we have slightly
adjusted our forecasts for the current and coming financial year due to the
very good development that has taken place so far. For the first time, we
are including the forecasts for the 2023 financial year in the concrete
estimation period, which, together with the new target horizon of 31
December 2022 (previously: 31 December 2021), accounts for the technical
model roll-over effect. Our price target has been raised to EUR9.10
(previously: EUR7.03) and we continue to assign a BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/22753.pdf

Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date (time) completion: 09/08/21 (08:18 am)
Date (time) first transmission: 09/08/21 (09:30 am)

-------------------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