^

Original-Research: Nabaltec AG - from NuWays AG

22.08.2025 / 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: 22.08.2025

Target price: EUR 18.00

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

Final Q2 out // attractive valuation level

Yesterday, Nabaltec released its final Q2 figures, which provide additional

insight into current operations. Here are the key takeaways:

Broad demand weakness, yet particularly pronounced within the boehmite

market. With its high dependency on the steel industry, the Specialty

Alumina segment recorded a yoy sales decline of 8%. While demand for ATH

remained largely flat, boehmite continued its downward trend. With only EUR

4.1m sales during the first half of 2025, boehmite seems on track to reach

only EUR 8-10m FY sales (vs. EUR 24m in FY21), a -22% CAGR. This is the result

of significant overcapacities from Chinese Estone, resulting in lower sale

prices, and the absence of demand growth as EV sales figures are far from

former expectations.

Improved gross margin thanks to notably lower energy costs: +4.6pp yoy,

+5.8pp qoq to 53.7%. While this trend is seen to partially level off during

H2, management still expects a better gross margin than seen in Q1. With

this, the mid-point of the FY25 EBIT margin guidance of 7-9% (eNuW: 8.5%)

should be within reach; H1 margin: 8.4%.

Cash further increasing, adding onto the already healthy balance sheet. At

the end of H1, cash stood at roughly EUR 91m, resulting in a EUR 0.4m net cash

position as operating cash flow remained strong at EUR 20.5m (-15% yoy) and

capex decreased by some EUR 3m to EUR 10.8m. As we expect higher investment

during H2 (eNuW: EUR 21m, last tranche of its growth initiative) and more

normalized payables, net debt is seen to come in at EUR 8m at the end of the

year.

Attractive prospects during mid- to long-term. Nabaltec is able to benefit

from growing demand for ATH on the back of tightening regulations acro

core end markets, vast investments into data centers but also Germany's EUR

500bn infrastructure spending bill. The latter is seen to also turn into a

tailwind for the company's Speciality Alumina segment, which is strongly

tied to the European steel industry. However, we would not expect notable

contributions before the end of 2026e.

While current operations remain burdened, the valuation offers an attractive

entry opportunity ahead of the next cyclical upswing. Shares are trading at

a ~25% discount to their book value and on 7.4 EV/EBIT 2025e while also

providing a healthy balance sheet, still good profitability levels and

operating cash generation. As demand for its core products accelerate

again, the company is poised for strong free cash flow generation. Mind you,

with the completion of the current investment initiative, the company ha

production capacities that allow up to EUR 300m sales.

BUY with an unchanged EUR 18 PT based on FCFY 2025e.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=1bfe527aff1292ee5949dd6f21987e79

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

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

2187410 22.08.2025 CET/CEST

°