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Original-Research: Scandinavian Astor Group AB - from NuWays AG

20.06.2025 / 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.

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Classification of NuWays AG to Scandinavian Astor Group AB

Company Name: Scandinavian Astor Group AB

ISIN: SE0019175274

Reason for the research: Update

Recommendation: Buy

from: 20.06.2025

Target price: 54.00

Target price on sight of: 12 month

Last rating change:

Analyst: Henry Wendisch

Sweden approves SEK 300bn defence booster

Yesterday, the Swedish parliament backed the plans to issue SEK 300bn in

additional debt to boost defence spending. Mind you, Sweden's current

defence budget stands at SEK 140bn for FY'25e (i.e. 2.7% of GDP) and in

March, Sweden commited to raise defene spending even further. In order to

meet the commited NATO target (3.5% of GDP by 2030), Sweden would thus spend

SEK 250bn annually on defence by 2030, so almost twice as much as today.

This translates into a defence spending per capita of EUR 2,100 (vs. EUR 1,000

in Germany), showing the large rearmament measures Sweden currently

undertakes. Now, the Swedish parliament backed those plans by having

approved additional debt. Mind you, the Nordics have a comparably low

indebtedness in % of GDP (Sweden: 29%, Denmark: 31%, Norway: 42%) and thu

have ample room to take on further debt, should it be required.

Next to this positive macro-newsflow, Astor has also announced positive

newsflow in the last days as well:

1. Large defence order for Marstrom: The carbon fibre specialist received

a large defence order worth SEK 21.3m for composite products from a

major nothern European defence company (likely Saab, Kongsberg or BAE,

in our view). Deliveries will begin in Q3'25 and continue until '27e.

2. Closing of NSG: Yesterday, Astor announced the closing of Nordic Shield

Group, which is now a 30% associated company recorded at equity. The

deal was under the requirement, that NSG itself gained approval of the

acquisition of Cesium (producer of patented mobile security vaults for

rapid military deployment, bullet- and explosionproof), which has taken

place yesterday as well. Mind you, Astor has an option to increase it

holding in NSG (and thus indirectly in Cesium) to 39% within 15 months,

provided that current NSG shareholders do not exercise their

subscription rights. Cesium alone shows a very strong profile with sale

of SEK 126m and a staggering 38% EBIT margin in FY'24. Financials for

NSG (ex Cesium) are not disclosed, but we expect it to be profitable

company as well. Going forward, the deal will not contribute to sales,

but boost profitability as it will be recorded at equity.

3. Carbonia acquisition closing soon. Astor gained National Inspectorate

of Strategic Products (ISP's) approval to acquire Carbonia Composites.

With that, Astor issued 442k new shares at SEK 37.29 (total: SEK 16.5m)

as part of payment. Closing is now expected to be on July 1st 2025.

Altough the shares do not appear cheap on multiples (which are based on

reported numbers), we nevertheless see ample potential for the stock. On a

proforma basis, where the most recent M&A is incorporated into sales and

EBITDA on a full year basis, the valuation multiples show a more better

picture (see below).

Furthermore, we've added the recent AMMUNITY acquisition to our deal

overview (see below), where Astor's ability to acquire companies at

attractive prices becomes visible. Mind you, the acquisition of NSG only

shows the financials of Cesium and excludes the financials of NSG on a

standalone basis, which implies a blended acquisition multiple well below

the 8.2x EV/EBITDA.

In sum, Astor continues to deliver on all fronts, is supported by positive

macro-tailwinds and still offers upside for new investors. Against thi

backdrop, we reiterate our BUY recommendation with unchanged PT of SEK

54.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32882.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

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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.

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2157972 20.06.2025 CET/CEST

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