Original-Research: Netfonds AG - from NuWays AG
22.08.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
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Classification of NuWays AG to Netfonds AG
Company Name: Netfonds AG
ISIN: DE000A1MME74
Reason for the research: Update
Recommendation: BUY
from: 22.08.2024
Target price: EUR 59.00
Last rating change:
Analyst: Frederik Jarchow
Solid Q2 preliminary figures above estimates
Topic: Yesterday, Netfonds reported strong preliminary Q2 figures above our estimates on both, top- and bottom line. The upper end of the guidance seems in reach. In detail:
* Gross Sales grew by 20% yoy to EUR 56.5m, above out estimates of EUR 56m. Main driver was the strong AuA and AuM development with new record levels of EUR 26.2bn (+10% YTD; 15% yoy) and EUR 3.3bn (20% YTD; 18% yoy), both well above our estimates of EUR 25.7bn and EUR 3.2bn (eNuW old). Consequently, Netfonds should reach our estimates for FY24 of EUR 27bn AuA and EUR 4.0bn AuM easily.
* EBITDA came in above estimates at EUR 2.0m (122% qoq, 37% yoy vs eNuW: EUR 1.6m), mainly driven by the topline growth paired with stable OPEX compared to Q1, showing the strong operating leverage of the business model
Going forward, we see further sequential growth on the back of 1) value accretive smaller transactions (i.e. MFK and Comfort Finance) for very reasonable prices (eNuW: 4-8x EBITDA) 2) the initiation of an own money market fund with already above EUR 75m end of Q2 and 3) the acquisition of an umbrella in Luxembourg. All that should start to materialize within Q3/Q4Ž24. Hence, the confirmed FY24 guidance of EUR 220-230m in gross sales and EUR 41.5-43m in net sales should be reached easily.
Consolidation of the insurance brokerage market in full swing. Apart from the strong operating performance, the Groups proprietary, 360° finfire platform is seen to fuel the market consolidation especially in the insurance broker market that is, in contrary to the investment adviser market, still highly fragmented. Thanks to finfire, the selling and managing of insurance products is much easier unlocking enormous cross-selling potentials, as the already onboarded investment adviser can additionally offer a wide range of insurance products to its customers. finfire hence remains the companyŽs key mid- to long term growth and scalability driver. The expected strong organic growth momentum is expected to be accompanied by further value-accretive M&A deals that should come at very reasonable price.
Overall, we see Netfonds well on track to reach its mid-term target of EUR 59m net sales (vs eNuW: EUR 59m) and EUR 23m EBITDA (vs eNuW: EUR 20m) by FY26.
BUY with an unchanged PT of EUR 74.00, based on DCF.
You can download the research here: http://www.more-ir.de/d/30589.pdf For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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1972749 22.08.2024 CET/CEST
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