^

Original-Research: Nabaltec AG - from NuWays AG

07.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

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 Nabaltec AG

Company Name: Nabaltec AG

ISIN: DE000A0KPPR7

Reason for the research: Update

Recommendation: BUY

from: 07.05.2025

Target price: EUR 24.00

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

FY24 marked by strong op. CF; soft start into FY25

2024 figures inline with prelims. To recap: FY24 sales grew by 1.7% yoy to EUR

203.6m, largely driven by higher sales volumes of fine hydroxides and

viscosity optimized hydroxides (sales +100% yoy to EUR 10.2m), which

compensated for weaker demand for boehmite (-25% yoy to only EUR 12.5m due to

lacklustre EV demand across Europe and the absence of notable cell and

separator production capacities) and Specialty Alumina (41% refractory

share, 11% on group level) as well as generally lower sales prices. While

Functional Fillers grew its top-line by 4%, Specialty Alumina recorded a

3.8% decline.

At 10.8%, the EBIT margin increased by 1.7pp yoy; EUR 22.3m absolute EBIT.

Thanks to the good operational performance coupled with working capital

improvements (wc/sales -3.4pp to 17.8%), the operating cash flow stood at EUR

35.2m, sufficient to cover the company's growth investments (EUR 32m capex).

Soft start into the year. Nabaltec also released Q1 prelims with sale

growing 1.2% yoy to EUR 54.7m and an EBIT of EUR 4m, a 7.5% margin (-1.8pp yoy)

as higher input costs (gas, electricity and labour) weighed on

profitability. Yet, improvements are seen to gradually materialize

throughout the year thanks to the announced selling price increases that

will be implemented from Q2 onwards (eNuW: ~ 3.5%).

Cautious FY25 guidance. Due to the expected gradual improvements outlined

above, management's expectations of 3-5%

FY25 sales growth (eNuW: 5.7%) and an EBIT margin of 7-9% (eNuW: 9.7%) look

conservative.

Potential tailwinds from Germany's EUR 1tn spending bazooka. On March 4th,

election winner Friedrich Merz from the Christian Democrats (CDU) as well a

the Bavarian Christian Social Union (CSU) and the Social Democrats (SPD)

discussed a EUR 500bn special fund for infrastructure investments over the

coming 10 years, next to a sizeable fund for defense. With 25% of group

sales being directly tied to Germany (Europe 76%) and construction being the

most important end market, this could turn into a notable tailwind.

Valuation remains low. Nabaltec is trading at a 12% discount to its book

value, while the company offers a strong balance sheet and good free cash

flow yield, even in a macro-economically challenging year. We continue to

regard to stock to be mispriced and confirm our BUY rating with a EUR 24 PT

(old: EUR 25) based on FCFY 2025.

You can download the research here: http://www.more-ir.de/d/32486.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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 Abschlu

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

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

2131580 07.05.2025 CET/CEST

°