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Original-Research: 029 Group SE - from NuWays AG
30.04.2025 / 09:00 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.
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Classification of NuWays AG to 029 Group SE
Company Name: 029 Group SE
ISIN: DE000A2LQ2D0
Reason for the research: Update
Recommendation: SELL
from: 30.04.2025
Target price: EUR 15.80
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
FY24 out: Portfolio progressing as planned
029's net income stood at EUR 0.33m, comparing to previous year's EUR 5.6m loss,
which was the result of the successful exit from the investment in Emerald
Stay (EUR 0.94m other operating income) and the writeoff of the investment
Conscious Good the year before. As a reminder, 029 sold it's 5.2% stake in
Emerald Stay. The transaction is expected to generate roughly EUR 1.6m gross
proceeds, reflecting a realized multiple on the FY23 book value of around
2.3x and 2.7x on the invested capital.
Limestone Capital, the key holding (87% of NAV, eNuW) continues to grow its
portfolio. The company is about to open a hotel on Mallorca and purchased a
former Nobu location in London. With those, the number of Aethos hotels
owned and managed, is set to increase to 10. Further, Limestone acquired a
majority stake in LOISIUM Wine & Spa Hotels. Over the next twelve months,
four new LOISIUM hotels are set to open in Italy and France backed by
Limestone's commitment to invest over EUR 100m into the expansion of the
brand. Limestone also spearheaded a EUR 40m Series A financing round for MYNE
Homes, Europe's leading managed co-ownership provider for premium vacation
homes in Germany, Austria, Italy, Spain, France, Sweden and Croatia.
TRIP Drinks (8.1% of NAV, eNuW), UK's leading brand for CBD and magnesium
drinks, CBS oils, gummies and powders continues its growth trajectory. In
March, TRIP was the third most popular drink choice. The company is also
progressing well with its geographical expansion, especially in the USA.
hotelbird (3.3% of NAV, eNuW) is leading solution provider for a seamless
digital guest journey within the hotel industry. As the company is able to
finance itself, the last funding round took place in 2019. Worth
highlighting, at the end of 2024, ReGuest AG went public in Austria. The
hotel CRM software company generated some EUR 4.3m sales in FY24 and is
currently valued at EUR 150m (market cap). While this is not an apples to
apple comparison, it underpins the sector's high multiples.
Brother's Bond (1.1% of NAV, eNuW) raised $ 7.5m at the beginning of FY25.
This should allow the company to further drive growth an reach sustainable
profitability levels during the near-term.
As the current market cap (+197% ytd.) notably exceeds the company's fair
NAV, we downgrade 029 to SELL with a new PT of EUR 15.8 (EUR 14) based on a sum
of-the-parts valuation with a 5% holding discount.
You can download the research here: http://www.more-ir.de/d/32394.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
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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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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2127264 30.04.2025 CET/CEST
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