Original-Research: EV Digital Invest AG - from NuWays AG
Classification of NuWays AG to EV Digital Invest AG
Company Name: EV Digital Invest AG
ISIN: DE000A3DD6W5
Reason for the research: Update
Recommendation: Kaufen
from: 26.04.2024
Target price: EUR 3.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow
Better than feared FY23; New product launch; chg
Topic: EVDI reported better than feared final FY23 figures and published a guidance for FY24. Further, the company announced the launch of a new attractive call money product for both, existing and new clients. In detail:
Sales of EUR 4.1m (-20% yoy) stemming from 13 financed projects (vs eNuW: 14) with an aggregated financed volume of EUR 39m (vs eNuW: EUR 39m) is below previous years figure (FY22: EUR 5.2m) due to the overall weak industry, but better than expected (eNuW: EUR 3.5m). Positively, the number of projects and average volume per project improved significantly in H2 (vs H1) resulting in EUR 2.6m sales (vs EUR 1.5m in H1), clearly demonstrating the ability to deliver in challenging times.
EBITDA came in at negative EUR 3.9m (vs EUR -3.4m in FY22), slightly better than expected (eNuW: EUR -4.2m), thanks to the stronger than anticipated topline and lower personnel expenses, compensating for higher other operating expenses that were burdened by one-offs stemming from insolvencies and delays.
Attractive new product. Apart from FY23 figures, EVDI announced to have launched a new call money account for new and existing customers with a very attractive interest rate of 3.2% for up to EUR 5m per customer. This offering is by far better than the comparable offering of most online banks and brokers, especially for wealthy customers. Even better, we expect EVDI to earn 0.2-0.25% on the volume (eNuW). With the new product, the company is adding a low-risk alternative to its overall offering consisting of property and ETF investments as well as wealth management. Due to the attractiveness of the call-money offering, we expect significant customer and asset inflows within the next quarters, allowing for a promising cross-selling and conversion potential.
For FY24, management expects a revitalizing real-estate market mainly driven by the anticipated reduction of interest rates. Due to the uncertainty around that topic, management provides a rather conservative guidance of EUR 4.9-5.8m in op. income (vs eNuW old: EUR 6.3m) and up to EUR -1.9m EBITDA, (eNuW old: EUR -2m in EBITDA).
BUY (old: HOLD) on valuation with a reduced PT of EUR 3.60 (old: EUR 4.80), based on DCF.
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http://www.more-ir.de/d/29533.pdf
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NuWays AG - Equity Research
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