^

Original-Research: MAX Automation SE - von NuWays AG

Einstufung von NuWays AG zu MAX Automation SE

Unternehmen: MAX Automation SE

ISIN: DE000A2DA588

Anlass der Studie: Update

Empfehlung: BUY

seit: 05.12.2023

Kursziel: EUR 8,20

Kursziel auf Sicht von: 12 Monaten

Letzte Ratingänderung:

Analyst: Konstantin Völk

Strong growth opportunities carried by structural trends; PT up

Despite a strong competitive quality and structural growth drivers, MAX

Automation had difficulties translating it into operating performance

between 2016 and 2020. Thanks to MAX having done its homework by adjusting

its portfolio and structural trends kicking in, shares look poised for a

re-rating.

Until 2025e, MAX Automation should be able to grow sales to EUR 510m while

achieving disproportionate EBITDA growth of 15% (2022-25e CAGR) thanks to:

Structural growth drivers: MAX's subsidiary bdtronic is a leading provider

of trickling impregnation, which significantly improves performance and

safety metrics of electric drive trains. With the number of electric

vehicles likely to continue to soar during the foreseeable future, the need

for its automated solutions, that enable particularly high production speed

without sacrificing quality, should enable bdtronc's sales to grow >20%

annually.

Defensible competitive quality: Bdtronic's trickling impregnation business

is based on highly specific know-how and a strong reputation, establishing

lock-in effects and hence high entry barriers. Once the impregnation

machines are installed, it is costly for OEMs to switch to different

suppliers, enabling bdtronic a lucrative service business, allowing for

EBITDA margins north of 17% for bdtronic (eNuW).

With that, MAX's group KPIs should also further improve: EBIT margins (5.4%

in FY22 -> 7.6%), ROCEs (9.4% in FY22 to >11%) and free cashflow generation

(neg. in FY22 to EUR 20m) going forward.

In addition to the improving operating performance, a successful divestment

of the subsidiary MA micro (company news 08.09.2023) should be a notable

share price catalyst, revealing that the value of the "parts" clearly

exceeds the current Enterprise Value of the MAX Automation group, in our

view. A strategic buyer should be willing to pay at least 10x EBITDA for

this highly profitable and return-rich specialty

business, implying a purchase price of above EUR 100m (eNuW).

Importantly, even after a divestment, MAX would own hidden Mittelstand

champions such as bdtronic and Vecoplan, amongst other, whose combined

value alone would well exceed the remaining (theoretical) EUR 200m EV of the

group ex MA micro (eNuW), underpinning the undervaluation of the stock.

Hence, we reiterate our BUY rating with an increased EUR 8.20 PT (old: EUR

7.30) based on DCF.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/28479.pdf

Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden

www.nuways-ag.com/research.

Kontakt für Rückfragen

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.

++++++++++

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

°