^

Original-Research: Netfonds AG - from NuWays AG

Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG ISIN: DE000A1MME74

Reason for the research: Update Recommendation: Kaufen from: 09.07.2024 Target price: EUR 74.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow

Reassuring roundtable call & value-accretive transaction; chg Topic: During last week's digital roundtable, hosted by us, the CFO Peer Reichelt provided a business update as well as with a promising outlook for the remainder of the year and beyond. Key takeaways: Value-accretive M&A transaction. The fund initiator GSR GmbH, a subsidiary of Netfonds, acquired 80% of the outstanding shares of another, not named fund initiator, increasing GSRŽs AuM by EUR 140m to EUR 330m. The acquired fund initiator should have a positive effect on the Groups EBITDA to the tune of c. 300-600k (eNuW) in 2024e. We expect that Netfonds paid some EUR 2-3m (eNuW), making it an attractive acquisition. With the value-accretive deal, Netfonds continued its growth and scale-path. Strong H1 figures ahead: After the record Q1 figures with AuC of EUR 25.1bn and gross sales of EUR 56m, stock markets have reached new all-time highs in Q2, providing confidence that Netfonds should have continued organic growth also in Q2. That, paired with 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 and 3) the acquisition of and umbrella in Luxembourg, should have further driven top-line and bottom-line (thanks to cross-selling and synergy effects). Consolidation of the insurance brokerage market in full swing. The Groups proprietary, 360° finfire platform is seen to fuel consolidation of 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 has to come at reasonable price, as management underlined during the virtual roundtable. 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 a new PT of EUR 74.00 (old: EUR 73.00), based on DCF.

You can download the research here: http://www.more-ir.de/d/30169.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. ++++++++++

-------------------transmitted by 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.

°

Quelle: dpa-Afx