Original-Research: elumeo SE - from NuWays AG Classification of NuWays AG to elumeo SE Company Name: elumeo SE ISIN: DE000A11Q059 Reason for the research: Update Recommendation: BUY from: 11.03.2024 Target price: 5.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Mark Schüssler Growth avenues lead the way in 2024 and beyond elumeo looks set to benefit from two growth initiatives in particular which should help both top and bottom line performance going forward: Growth avenue #1: juwelo.
11.03.2024 - 09:02:10Original-Research: elumeo SE (von NuWays AG): BUY
Original-Research: elumeo SE - from NuWays AG Classification of NuWays AG to elumeo SE Company Name: elumeo SE ISIN: DE000A11Q059 Reason for the research: Update Recommendation: BUY from: 11.03.2024 Target price: 5.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Mark Schüssler Growth avenues lead the way in 2024 and beyond elumeo looks set to benefit from two growth initiatives in particular which should help both top and bottom line performance going forward: Growth avenue #1: juwelo. We currently expect much of H1'24e to be burdened by the continued muted consumer sentiment witnessed over the last quarters, estimating c. EUR 22m (eNuW) in sales for the first half of the year (flat yoy). While customer activity should be relatively unaffected overall for elumeo's core platform juwelo, the mix of both products and customers will likely reflect macroeconomic headwinds. However, whereas competitors like Wempe overwhelmingly offer higher-priced jewelry, leading customers to either stay or churn altogether, elumeo can prevent churn on its platform by offering both higher- and lower-priced items and allowing customers to simply subsititute one for the other. Thus, the average sales price is seen to decline compared to the prior reporting period (eNuW: EUR 72), but the number of items sold should steadily rise over the year to c. 645k (+2% yoy, eNuW) as (1) the continued development of an interactive mobile jewelry shopping app (eNuW: one-digit million figure or between c. 2-13% of FY'23e revenue) is expected to contribute perceptibly to FY total revenue by H2'24 and (2) AI translated automated shopping shows likely help reduce operating costs and boost video shopping content globally, the testing of which is still ongoing but already promising. Growth avenue #2: jooli. The platform was launched in the Indian market to capitalize on both lower customer acquisition costs and a trove of data needed to enhance the app's algorithm and features such as livestream shopping (clips of ~20 seconds) of not only jewelry but various lifestyle products. While first KPIs like order volume are promising, jooli's development is financed out of the company's own resources and conducted such that customer acqusition is profitable from the beginning, causing a slower but financially healthier ramp up. Therefore, we currently do not expect material top or bottom line contributions from jooli before 2026e (see also our update from February 2nd). However, as the company prepares jooli for a successful roll-out in its European markets in the mid-term, elumeo's core platform juwelo looks set to benefit from an eventual recovery of the jewelry and overall e-commerce market with sales prices and items sold likely to recover. We reiterate our BUY rating with an unchanged PT of EUR 5.00 based on DCF. You can download the research here: http://www.more-ir.de/d/29107.pdf For additional information visit our website www.nuways-ag.com/research. Contact for questions Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research. 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ -------------------transmitted by EQS Group AG.------------------- 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.
