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Original-Research: THE NAGA GROUP AG - von NuWays AG

Einstufung von NuWays AG zu THE NAGA GROUP AG

Unternehmen: THE NAGA GROUP AG

ISIN: DE000A161NR7

Anlass der Studie: Update

Empfehlung: HOLD

seit: 17.01.2024

Kursziel: 1.20

Kursziel auf Sicht von: 12 Monaten

Letzte Ratingänderung:

Analyst: Frederik Jarchow

Strong FY23 prelims and merger with Capex.com; chg

Last week, NAGA reported preliminary FY23 figures that came stronger than

expected. Further, the company has announced (at the end of 2023) a planned

business combination with Capex.com. In detail:

- Sales came in at EUR 45.5m (-21% yoy), significantly above our estimates of

EUR 38.1m. As Q4 trading activity of 95 trades per active customer (-14% qoq

vs eNuW: 109), number of trades of 2.0m (-14% qoq vs eNuW: 2.4m) and number

of active customers of 21k (1% qoq vs eNuW: 22k) are below our

expectations, we assume that revenue per trade was rather stable at c. EUR

4.0 (eNuW), resulting in brokerage revenues of some EUR 8m. We assume that

the remaining EUR 9m in Q4 were stemming from crypto trading revenues that we

consider as one-off.

- EBITDA stood at EUR 7.0m (vs -13.7m in FY22 vs eNuW: EUR 4.3m), thanks to the

strong topline as well as operational and marketing efficiency: Personnel

and other operating expenses should have declined by 26% and 25% yoy to EUR

7.9m and EUR 4.6m (eNuW), while marketing expenses are down by 79% to EUR 5.9m

resulting in the best ever gross customer acquisition cost of EUR 447 (-57%

yoy).

Apart from that, NAGA announced the intention to join forces with capex.com

- a fast growing multiasset broker with licenses in Europe and Abu Dhabi -

through the contribution of all shares in the parent company of the Key Way

Group into NAGA Group AG for c. 170m new NAGA shares that have to be newly

issued. The joint Group plans to generate USD 250m in sales and generate

40% EBITDA margin by FY26e (vs USD 90m sales and USD 6m in FY23e).

Management is expecting direct cost synergies of c. USD 10m, which seems

reasonable. In order to finance the growth, the Capex.com CEO and future

NAGA CEO Octavian Patrascu is expected to personally inject EUR 8.2m into the

company via a convertible bond (zero coupon).

On the back of declining trading activity in Q4, we remain cautious looking

into 2024, still expecting sales of EUR 41.8m and EBITDA of EUR 8.0m, not

considering any one-offs. Synergy effects from the business combination as

well as one-offs could provide further upside.

Reiterate HOLD with an unchanged PT of EUR 1.30 based on DCF. Please notice

that we do not consider the business combination in our estimates until the

deal is closed.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/28689.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

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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.

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-------------------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.

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