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Original-Research: THE NAGA GROUP AG - from NuWays AG

20.08.2025 / 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.

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Classification of NuWays AG to THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG

ISIN: DE000A161NR7

Reason for the research: Update

Recommendation: BUY

from: 20.08.2025

Target price: EUR 1.10

Target price on sight of: 12 month

Last rating change:

Analyst: Frederik Jarchow

Growth momentum intact despite soft H1 figure

Last week, NAGA reported preliminary H1 figures that fell slightly short of

expectations on both, top- and bottom-line. In detail:

H1 sales came in at EUR 32.2m (+2% yoy), which is below our estimate of EUR

35.7m and should be driven by lower customer activity. No. of transaction

should have decreased to 3.8m (-5% yoy, eNuW) with an average revenue per

transaction that grew to EUR 8.50 (7% yoy, eNuW). Gross sales (sales after

execution and liquidity costs) increased to EUR 28.9m (+14% yoy, vs eNuW: EUR

30.5m)

H1 EBITDA stands at EUR 3.0m (+8% yoy) and hence lower than anticipated (eNuW:

EUR 4.0m), mainly due to lower topline. Positively, lower OPEX on the back of

higher efficiency and scale effects, partially compensated for the weaker

top-line.

After the transition year 2024 that was mainly characterized by integration,

automation and efficiency processes, the growth engine that was restarted in

early 2025 with measures such as the cooperation with BVB (Q4´24) and Mike

Tyson (Q1´25) is still sputtering a little. Nevertheless, we expects the

measures to bear fruit going forward resulting in an acceleration of growth

that should additionally be fueled by the assumed high marketing spending

in H1 (eNuW: EUR 16.1m, +45% yoy). First effects should become visible in

higher H2 sales figures and exponential bottom line growth.

While management is still expecting top-line growth of 19% to EUR 74m in FY25

and another 32% to EUR 97.8m in FY26, we take a more conservative stance here

and slightly trimmed our estimates to EUR 70m in FY25 and EUR 79m in FY26

(eNuW). Thanks to expected further synergy, efficiency and scale effects,

management still expects EBITDA to increase to EUR 12.5m in FY25 and to EUR

27.6m in FY26, while we reduced our estimates to EUR 10m in FY25 and EUR 14.9m

in FY26. Keep in mind that even minor fluctuations of market volatility

could result in significantly higher revenues. That said, the topline

guidance is still in reach in our view, while the bottom line guidance look

too ambitious.

We are convinced that the management took the right measures and see the

company on track to deliver further solid growth.

We reiterate BUY with a reduced PT of EUR 1.10 based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=afa6526312913e5473c64733b655661d

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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2186120 20.08.2025 CET/CEST

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