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Original-Research: Netfonds AG - from NuWays AG

14.01.2025 / 09:01 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 Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: Buy

from: 14.01.2025

Target price: EUR 78.00

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Kickstart into FY25 with new record AuA and AuM; chg

Topic: Netfonds kicked off the year with strong positive newsflow i.e. a new

record-AuA level of EUR 28.3bn and AuM exceeding EUR 4bn for the first time.

Further, Netfonds will take over another fund initiator through its

subsidiary GSR GmbH, as already announced at the end of last year. In

detail:

With the new AuA record of 28.3bn at the end of FY24, Netfonds significantly

exceeded our estimates of EUR 27.bn while AuM of EUR 4.05bn came in as expected

(eNuW: EUR 4.0bn). Nevertheless, both figures are quite impressive as we

increased our estimates for both figures more than once throughout the year.

Thanks to the strong AuA growth, the given guidance for FY24 of EUR 220-230m

in gross sales and EUR 41.5-43m in net sales can hence be taken as granted

(eNuW new: EUR 230m gross sales; EUR 44m net sales). Even better, the record AuA

levels end of last year strongly indicating further strong top- and

bottomline, as asset inflows materialize with a slight delay. That said, the

value-accretive M&A transactions of the undisclosed fund initiator and

others (i.e. MFK and Comfort Finance) should further fuel top- and bottom

line growth in FY25 and beyond. For FY25, we expect 51m net sales (EUR 260m

gross sales) inline with management's new guidance of "dynamic double-digit

yoy growth". As the scale effects of the platform business kicking in,

EBITDA should grow exponentially to EUR 17m (eNuW).

On the back of 1) the strong ongoing operating performance, 2) Netfonds 360°

finfire platform being the key mid- to long term growth and scalability

driver and 3) further value accretive M&A transactions, we see Netfonds well

on track to reach its mid-term target of EUR 59m net sales (vs eNuW: EUR 62m)

and EUR 23m EBITDA (vs eNuW: EUR 22m) by FY26.

Apart from that and in order to finance the takeover of a fund initiator

through its subsidiary GSR (takeover price: mid single-digit million

amount), but also further potential acquisitions, Netfonds successfully

issued an unsecured bond with a volume EUR 15m million (coupon: 7.00% p.a.)

end of last year. This acquisition is underlining once again that Netfonds

is playing an active role in the market consolidation. We expect to see

further acquisitions in FY25.

BUY with new PT of EUR 78.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31617.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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2066831 14.01.2025 CET/CEST

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