^ Original-Research: Netfonds AG - from NuWays AG

22.08.2024 / 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.

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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: 22.08.2024 Target price: EUR 59.00 Last rating change: Analyst: Frederik Jarchow

Solid Q2 preliminary figures above estimates

Topic: Yesterday, Netfonds reported strong preliminary Q2 figures above our estimates on both, top- and bottom line. The upper end of the guidance seems in reach. In detail:

* Gross Sales grew by 20% yoy to EUR 56.5m, above out estimates of EUR 56m. Main driver was the strong AuA and AuM development with new record levels of EUR 26.2bn (+10% YTD; 15% yoy) and EUR 3.3bn (20% YTD; 18% yoy), both well above our estimates of EUR 25.7bn and EUR 3.2bn (eNuW old). Consequently, Netfonds should reach our estimates for FY24 of EUR 27bn AuA and EUR 4.0bn AuM easily.

* EBITDA came in above estimates at EUR 2.0m (122% qoq, 37% yoy vs eNuW: EUR 1.6m), mainly driven by the topline growth paired with stable OPEX compared to Q1, showing the strong operating leverage of the business model

Going forward, we see further sequential growth on the back of 1) value accretive smaller transactions (i.e. MFK and Comfort Finance) for very reasonable prices (eNuW: 4-8x EBITDA) 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. All that should start to materialize within Q3/Q4Ž24. Hence, the confirmed FY24 guidance of EUR 220-230m in gross sales and EUR 41.5-43m in net sales should be reached easily.

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 expected to be accompanied by further value-accretive M&A deals that should come at very reasonable price.

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/30589.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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1972749 22.08.2024 CET/CEST

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Quelle: dpa-Afx