Original-Research: THE NAGA GROUP AG (von NuWays AG): BUY

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Original-Research: THE NAGA GROUP AG - from NuWays AG

19.09.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG
ISIN: DE000A161NR7

Reason for the research: Update
Recommendation: BUY
from: 19.09.2024
Target price: EUR 1.20
Last rating change:
Analyst: Frederik Jarchow

Partnership with BVB to increase reach

Topic: NAGA recently entered into a sponsoring partnership with Borussia
Dortmund for the current and upcoming Bundesliga season. In detail:

Having entered into this cooperation, NAGA is now one of the official
partner of BVB. With that, NAGA received exclusive rights to use the team's
BVB partner logo on multiple markets, and the rights to use club players'
image in branding materials. Additionally, NAGA's brand will be present on
the LED advertising boards at home matches on Borussia's stadium Signal
Iduna Park. With that, NAGA intends to power-up its brand awareness in
Germany, which is it most important core market and attract new target
groups. As BVB is also playing Champions League, the cooperation should
additionally increase brand awareness in other important global regions.

In our view, this is a sensible sponsoring partnership as BVB has not only a
huge global fan community but is also enjoying high sympathy ratings from
fans of other clubs. The price per year is expected to be rather moderate
with below EUR 1m (eNuW) and should be already considered in the marketing
budget for this and next year.

In a bigger picture, the cooperation with BVB is just another piece that is
paving the way towards the vision for 2026 of USD 250m in sales and 40%
EBITDA. While we consider this vision as rather optimistic, the past has
already shown that an incremental positive change in the sentiment could
have an enormous effect on the P&L of NAGA. The leverage of the joint Group
could even scale this effect. Still, in our base case scenario we
conservatively only anticipating EUR 90m in sales and an EBITDA of EUR 19m (22%
EBITDA margin), leaving room for positive surprises. Looking into 2024,
estimated 15.9m transactions on the back of a slowly revitalizing retail
brokerage space should lift sales to EUR 71.8m, assuming an avg revenue per
trade of EUR 5.0. Synergy effects and ongoing disciplined spending are
expected to additionally drive EBITDA that we see at EUR 11.5m.

Overall, the revitalization of customer activity in the brokerage space,
paired with cross-selling and synergy effects arising from the merger should
fuel NAGAŽs growth. Details on the growth plan will be presented during our
roundtable, today at 10am CEST.

BUY with an unchanged PT of EUR 1.20 based on DCF

You can download the research here: http://www.more-ir.de/d/30819.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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1991057 19.09.2024 CET/CEST

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Quelle: dpa-AFX