Original-Research: Netfonds AG - from NuWays AG Classification of NuWays AG to Netfonds AG Company Name: Netfonds AG ISIN: DE000A1MME74 Reason for the research: Update Recommendation: BUY from: 11.03.2024 Target price: 73.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow Netfonds beat expectations / / Strong FY23 prelims; chg Netfonds reported strong FY23 prelims beating our expectations.

Original-Research: Netfonds AG (von NuWays AG): BUY

Original-Research: Netfonds AG - from NuWays AG

Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG
ISIN: DE000A1MME74

Reason for the research: Update
Recommendation: BUY
from: 11.03.2024
Target price: 73.00
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Frederik Jarchow

Netfonds beat expectations // Strong FY23 prelims; chg
 
Netfonds reported strong FY23 prelims beating our expectations. Further,
the company provided a new guidance for FY24 that remained rather vague for
the moment. In detail:
 
Gross sales came in at EUR 197m (+12% yoy), clearly above our estimate of EUR
191m. Key driver were the business areas Wholesale and Regulatory &
Technology business both showing yoy growth rates north of 10% mainly
fuelled by AuA that grew by 11% to EUR 23.8bn (vs eNuW: EUR 23.2bn). Thanks to
scale effects, material expenses should have declined relatively to sales
to 80.4% (vs 80.9% in FY22) resulting in net sales of EUR 37.0m (3% yoy vs
eNuW: EUR 36.1m).
 
EBITDA stood at EUR 6.2m (-28% yoy, 85% qoq), also above estimates of EUR 5.7m,
mainly the result of the sound topline development compensating for higher
than anticipated OPEX of EUR 30.8m (4% yoy vs eNuW: EUR 30.4m). 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.
 
Overall, Q4 figures marked a strong finish of a sound FY23. On the back of
EUR 23.8 bn AuC in FY23 as a starting point into FY24, paired with stock
markets at all-time highs after two months, topline should continue to grow
in FY24, even without new AuA inflows that we consider as very likely
(eNuW: 8% to EUR 25.6bn). Even better, profitable AuM from the wealth
management should grow even more dynamically (eNuW: 25% to EUR 4bn).
 
Further, the finfire platform is seen to fuel consolidation of 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 huge cross-selling
potentials, as the already onboarded investment adviser can additionally
offer a wide range of insurance products to its customers. Netfonds
proprietary, 360

finfire platform hence remains the key mid- to long termgrowth and scalability driver.

In order to reflect the strong FY23 figures, the bright market environmentand the enormous (cross-selling) potential arising from finfire, we nowexpect for FY24 EUR 45m net sales and an EUR 12.5m EBITDA, in line withmanagement guidance of net sales "well above EUR 40m" and "strong increase inEBITDA".

BUY with a new PT of EUR 73.00 (old: EUR 71.00), based on DCF.

You can download the research here:http://www.more-ir.de/d/29105.pdfFor additional information visit our websitewww.nuways-ag.com/research.

Contact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.NuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: [e-mail]: https://www.linkedin.com/company/nuwaysagAdresse: 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 adviceor an invitation to conclude certain stock exchange transactions.

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