^ Original-Research: Cantourage Group SE - from NuWays AG

10.10.2024 / 09:01 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.

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

Classification of NuWays AG to Cantourage Group SE

Company Name: Cantourage Group SE ISIN: DE000A3DSV01

Reason for the research: Update Recommendation: Buy from: 10.10.2024 Target price: EUR 10.00 Target price on sight of: 12 months Last rating change: Analyst: Christian Sandherr

9M prelims: Growth further accelerating, FY guidance specified

Topic: Cantourage released preliminary Q3 figures, which were marked by >100% yoy sales growth and further sequential improvements thanks to the partial legalization that took place in April. With this, the company is well on track to reach EBITDA profitability this year. In detail:

Q3 sales jumped by 124% yoy to EUR 13.2m (9M sales +75% yoy to EUR 30.1m). The significant growth was primarily fuelled by the partial legalization of medical cannabis in Germany, which took effect at the end of April. This change has made obtaining a prescription for medical cannabis as straightforward as getting one for ibuprofen 600. On top, Cantourage is also experiencing a sharp increase in demand at its treatment facility in UK.

Further, Cantourage is well on track to turn profitable despite significant growth investments. In Q3, EBITDA is seen to come in at around EUR 1m (mid-point of guidance). For the FY, management expects to reach EBITDA break-even (eNuW: EUR 1.8m).

FY24 guidance specified towards the upper end. The company's initial FY24 sales guidance stood at EUR 37-43m (eNuW: EUR 43m). With EUR 30m sales after the first nine months and the past two months alone having contributed some EUR 10m, management specified the guidance towards the upper end, now targeting at least EUR 40m sales. Taking into account sequentially increasing sales volumes and the strong operational performance during recent months, we regard our estimate as well in reach. With the current runrate, our sales estimate of EUR 54m for FY25e (26% yoy growth) already look achievable.

Mid-term to be marked by further strong growth. Assuming a somewhat similar development of the German medical cannabis market as in US states, the market offers a EUR 1.2-1.4bn opportunity. Over the past two years, Cantourage has laid the foundation to achieve EUR100 million in sales. With a global network of over 60 growers, Cantourage offers a diverse range of cannabis flowers, minimizing cluster risks. Through its recent partnership with Portocanna, the company can now process approximately 14 tons of flowers annually. Additionally, Cantourage's own telemedicine platform, telecan°, connects the company directly with patients, offering easy access to cannabis therapy consultations and prescriptions.

We confirm our BUY rating with an unchanged EUR 10 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/31025.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. ++++++++++

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

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

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

2005619 10.10.2024 CET/CEST

°

Quelle: dpa-Afx