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Original-Research: Nynomic - from NuWays AG

Classification of NuWays AG to Nynomic

Company Name: Nynomic

ISIN: DE000A0MSN11

Reason for the research: Update

Recommendation: Kaufen

from: 28.03.2024

Target price: EUR 52.00

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Christian Sandherr

Strong Q4 profitability // conservative initial FY24 guidance; chg.

Q4 sales increased by 5% yoy to EUR 34.6m (eNuW EUR 37.6m) as the company wa

able to book several development projects towards the end of the year,

realized first revenues from larger plant phenotyping orders (Green Tech FY

segment sales +44% yoy to ~ EUR25m) and overall solid demand across the

group, especially from its semiconductor customers. FY23 grew by 1% yoy to

EUR 118m, meeting the company's guidance of "single-digit" yoy growth but

falling slightly short of market expectations of EUR 121.5m.

The Q4 EBIT margin (seasonally strongest quarter) came in at 20.5% (+6.6pp

yoy), meeting our and market estimates; FY23 EBIT margin grew 0.2pp yoy to

13.1%, in line with the guidance and consensus. The margin increase wa

despite further investments into future growth (R&D and personal expense

+5 and +13% yoy) mainly as a result of an improving product mix, visible in

the strong gross margin improvement; +4.9pp yoy to 63.7%.

While the order backlog stood at only EUR 54m (FY23 book-to-bill ratio of

0.7x), it is important to note the lumpy (partially due to the sizes of

individual orders) nature of the business. We hence see no structural

headwinds implied in this figure. In fact, during the earnings call

management pointed towards improving order intake during H1.

Management released a rather muted FY24 sales guidance (EBIT margin to

further increase), expecting "at least single-digit percentage growth",

which already includes consolidation effects from last year's acquisition

(eNuW 4% yoy growth). Yet, as highlighted during the earnings call, the

initial guidance should be on the conservative side as the company should

be able to tap several pockets of growth, including (1) unbroken demand

from semi customers, (2) fulfilment precision farming orders, (3) TactiScan

gaining traction and (4) a structurally growing medtech market.

Acquisitions to potentially add onto growth. As per its Buy & Build

strategy, Nynomic is seen to acquire 1-2 companies during the next six to

twelve months, in our view. The focus should lie on expanding it

technology and solutions portfolio. While the last acquisitions were rather

smaller the company's balance sheet would also allow larger targets with up

to EUR 20m sales. This bodes well with the company's mid-term targets of EUR

200m sales and an EBIT margin of 16-19%.

We confirm our BUY rating with a new EUR 52 PT (old: EUR 54).

You can download the research here:

http://www.more-ir.de/d/29275.pdf

For additional information visit our website

www.nuways-ag.com/research.

Contact for question

Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.

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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The result of this research does not constitute investment advice

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