Original-Research: 029 Group SE - from NuWays AG
08.10.2024 / 09:06 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 029 Group SE
Company Name: 029 Group SE
ISIN: DE000A2LQ2D0
Reason for the research: Update
Recommendation: Hold
from: 08.10.2024
Target price: EUR 14.00
Last rating change:
Analyst: Christian Sandherr
H1 figures: Emerald Stay divestment with positive P&L impact
Topic: 029 published H1 2024 figures which were marked by the positive contributions from the successful divestment of Emerald Stay, but also the further positive developments of the group's key holding, Limestone Capital.
In H1, the group's net income stood at EUR 0.7m, comparing to previous year's EUR 0.4m loss. Besides lower other operating expenses (from EUR 0.32m to EUR 0.18m), this was carried by a EUR 0.94m other operating income related to the divestment of Emerald Stay in February. As a reminder, 029 sold it's 5.2% stake in Emerald Stay. The transaction is expected to generate roughly EUR 1.6m gross proceeds, reflecting a realized multiple on the FY23 book value of around 2.3x and 2.7x on the invested capital.
Limestone Capital, the group's key holding (84.2% of NAV, eNuW), continues to grow its portfolio. In May, the company opened Aethos Sardina, a 57-room 5 star hotel. With this, seven hotels are operational with the 8th (Madrid) likely to become operational during Q3 2025.
What's more, Limestone spearheaded a EUR 40m Series A financing round for MYNE Homes, Europe's leading managed co-ownership provider for premium vacation homes in Germany, Austria, Italy, Spain, France, Sweden and Croatia. With its technology-driven platform, MYNE allows individuals to pool resources and invest in premium vacation homes, making ownership much easier and more affordable.
Changes in management board. On July 1st, 2024, Leon Sander succeeded Lorin Van Nuland, who has decided to step down as CEO in consultation with the Administrative Board, as new Managing Director. Leon Sander has actively supported 029 Group SE since its foundation and has already been a member of the Administrative Board.
Current portfolio overview. Besides Limestone, the group's portfolio also comprises TRIP Drinks (10.1% of NAV, eNuW), UK's leading CBD oils and drinks brand, which is progressing with its geographic expansion, hotelbird (3.9% of NAV, eNuW), Brother's Bond (1.5% of NAV, eNuW) and fjör (0.3% of NAV, eNuW), which are all showing operational developments in line with expectations.
029 Group remains a HOLD with an unchanged EUR 14 PT based on a sum-of- he-parts valuation with a 5% holding discount.
You can download the research here: http://www.more-ir.de/d/30997.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
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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2003687 08.10.2024 CET/CEST
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