Original-Research: Netfonds AG - from NuWays AG
21.03.2025 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS 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.
Classification of NuWays AG to Netfonds AG
Company Name: Netfonds AG
ISIN: DE000A1MME74
Reason for the research: Update
Recommendation: Buy
from: 21.03.2025
Target price: EUR 78.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Strong FY24 prelims // Growth to continue; chg
Topic: Netfonds reported strong FY24 prelims beating our expectations for sales, while AuA and EBITDA were bang in line with estimates. In detail:
Gross sales came in at EUR 238m (23% yoy), above our estimate of EUR 230m. Key driver was the Regulatory & Technology business with an impressive 71% yoy growth resulting in EUR 134m (vs eNuW: EUR 122m) overcompensating for the softer Wholesale business that declined by 11% yoy to EUR 101m (vs eNuW: EUR 105m) and the Miscellaneous business (-53% yoy to EUR 2.3m vs eNuW: EUR 3.3m). The overall topline growth was mainly fueled by AuA growth of 19% to EUR 28.3bn (vs eNuW: EUR 28.3bn). Thanks to scale effects, the material expenses ratio should have declined to 80.7% (vs 81.0% in FY23) resulting in net sales of EUR 46m (17% yoy vs eNuW: EUR 44m) that were above the guidance range of EUR 41-43m.
EBITDA stand at EUR 8.4m (71% yoy), in line with our estimate of EUR 8.5m, mainly driven by the sound topline development compensating for higher than anticipated OPEX of EUR 37.6m (9% yoy vs eNuW: EUR 35.6m) that should have been a result of increasing personnel expenses (18% yoy to EUR 24.7m vs eNuW: EUR 23.7m) and decreasing other operating expenses (-5% to 13.0m vs eNuW: EUR 11.9m). Again, relatively to gross sales, the OPEX ratio decreased significantly to 15.8% (vs 17.9% in FY23). EBT came in at EUR 2.2m (9% yoy vs eNuW: EUR 1.7m) as a result of EUR 4.1m D&A and a financial result of EUR 0.1m.
With a strong finish in FY24, Netfonds continued the growth of the last years. Thanks to further increasing AuAŽs and AuMŽs, driven by inflows as well as the strong performance of stock markets in Q1Ž25, topline should continue to grow. The anticipated growth should be strongly supported by Netfonds proprietary, 360° finfire platform that is seen to fuel consolidation of the insurance broker market that is, in contrary to the investment adviser market, still highly fragmented. We consider finfire to remain the Groups key mid- to long-term growth and scalability driver.
For FY25 we expect EUR 31.8bn AuA (thereof EUR 5bn more profitable AuM) leading to EUR 54.7m net sales (EUR 263m gross sales) and EUR 16.2m EBITDA, in line with managements guidance of EUR >50m net sales and "a disproportionately high increase in EBITDA and EBIT".
BUY with an unchanged PT of EUR 78.00, based on DCF.
You can download the research here: http://www.more-ir.de/d/32040.pdf For additional information visit our website:
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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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2104164 21.03.2025 CET/CEST
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