^
Original-Research: Einhell Germany AG - from NuWays AG
08.01.2025 / 09:05 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.
---------------------------------------------------------------------------
Classification of NuWays AG to Einhell Germany AG
Company Name: Einhell Germany AG
ISIN: DE000A40ESU3
Reason for the research: Update
Recommendation: Buy
from: 08.01.2025
Target price: EUR 86.00
Target price on sight of: 12 months
Last rating change:
Analyst: Konstantin Völk
Another strong year ahead for Einhell; chg. est.
Topic: After an already strong FY24e, Einhell should in our view also in
FY25e convince with solid sales growth and a further margin expansion.
Sales are expected to increase to EUR 1,145m in FY25e due to a strong demand
for Einhell's Power X-Change products and steadily increasing market share
in Einhell's core markets. In H1'24, Einhell was already by far the largest
player for cordless garden tools with a market share of 39% in Germany (vs.
36% in FY23) and 19% for cordless tools (vs. 17% in FY23). Next to the
Western European region, Einhell Australia is also growing fast with EUR 148m
sales in 9M'24 (vs. EUR 126m in 9M'23), accounting for c. 18% of total sales.
Furthermore, we expect Einhell to increase its EBT margin to 8.6% (eNuW)
next year thanks to the increasing share of PXC products (9M'24: 50% share;
+5ppts yoy), lower freight costs, a decrease in headcount and positive
operating leverage.
Going forward, Einhell should benefit from the structural trend towards
cordless battery-powered tools thanks to (1) high convenience of cordless
tools compared to conventional tools as they are more flexible, offer a high
level of safety and have less emissions and maintenance. (2) A rising
technological capability of Li-Ion battery systems, including improved
recharging speed, durability, energy management and maximum load. (3)
Reasonable pricing of Li-Ion battery systems thanks to mass market
production, making powerful battery systems applicable for a wide range of
semi-professional DIY products.
On top of that the current valuation of the stock is undemanding not only
based on an intrinsic valuation via DCF but also compared to its listed
peers as the stock is currently trading at only 12x trailing P/E and 9x
trailing EV/EBIT, despite its strong fundamentals.
Hence, we reiterate BUY with an unchanged PT of EUR 86 based on DCF.
You can download the research here: http://www.more-ir.de/d/31589.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
++++++++++
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.
++++++++++
---------------------------------------------------------------------------
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
2063195 08.01.2025 CET/CEST
°
