^ Original-Research: Netfonds AG - from NuWays AG

13.08.2024 / 09:02 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 Netfonds AG

Company Name: Netfonds AG ISIN: DE000A1MME74

Reason for the research: Update Recommendation: BUY from: 13.08.2024 Target price: EUR 74.00 Last rating change: Analyst: Frederik Jarchow

AuA and AuM hit new all-time high

Topic: With 26.2bn assets under administration (AuA) and EUR 3.3bn assets under management (AuM), Netfonds reached new record levels being well above our estimates.In detail:

Steep growth trajectory to continue. With an absolute growth of EUR 2.6bn in AuA YTD (+10%; 15% yoy) to EUR 26.2bn in Q2, Netfonds is well above our estimates of EUR 25.7bn and should easily reach our estimates for FY24 of EUR 27bn. Even better, the high margin AuM increased to EUR 3.3bn end of Q2 (20% YTD; 18% yoy), in line with our estimates for Q2 of EUR 3.2bn and on track for the anticipated EUR 4.0bn in FY24.

Strong H1 figures ahead: After the record Q1 figures with AuA of EUR 25.1bn and gross sales of EUR 56m Netfonds hit new all-time highs in Q2 and should also have continued its sales growth additionally fueled by 1) value accretive smaller transactions (i.e. MFK and Comfort Finance) for very reasonable prices (eNuW: 4-8x EBITDA) for its advisor network VB-Select, 2) the initiation of an own money market fund with already above EUR 75m end of Q2 and 3) the acquisition of an umbrella in Luxembourg. We conservatively expect EUR 56m in gross sales (20% yoy), EUR 10.5m in net sales (10% qoq, 9% yoy) and EUR 1.6m in EBITDA (78% qoq; 10% yoy). Q2 figures should come out end of August.

Consolidation of the insurance brokerage market in full swing. Apart from the strong operating performance, the Groups proprietary, 360° finfire platform is seen to fuel the market consolidation especially in the insurance broker market that is, in contrary to the investment adviser market, still highly fragmented. Thanks to finfire, the selling and managing of insurance products is much easier, unlocking enormous cross-selling potentials, as the already onboarded investment adviser can additionally offer a wide range of insurance products to its customers. finfire hence remains the companyŽs key mid- to long-term growth and scalability driver. The expected strong organic growth momentum is seen to be accompanied by further value-accretive M&A deals that should come at very reasonable prices.

Overall, we see Netfonds well on track to reach its mid-term target of EUR 59m net sales (vs eNuW: EUR 59m) and EUR 23m EBITDA (vs eNuW: EUR 20m) by FY26.

BUY with an unchanged PT of EUR 74.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/30443.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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1966385 13.08.2024 CET/CEST

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Quelle: dpa-Afx