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Original-Research: Scandinavian Astor Group AB - from NuWays AG
14.03.2025 / 09:46 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 Scandinavian Astor Group AB
Company Name: Scandinavian Astor Group AB
ISIN: SE0019175274
Reason for the research: Update
Recommendation: Buy
from: 14.03.2025
Target price: SEK 30.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch
Scandiflash in full swing; stock back at BUYing levels
Topic: Astor announced another strong order intake at its subsidiary
Scandiflash whereas European defence newsflow has led to share price
volatility. Here's our take:
Scandiflash in full swing. Yesterday, Astor announced a SEK 28m order at
Scandiflash (acquired and consolidated as of 1st Oct '24). This is reported
to be a followup order of an existing customers from a Western NATO country
(for several Scandiflash systems, following a first order already made in
Oct'24 for$ 4.2m or SEK 43.7m). In our view, this highlights not only the
strong demand from existing customers, but also showcases Scandiflash's
growth potential, as one customer alone has ordered systems for SEK 72m. In
the scenario, that Scandiflash would be able to acquire another similar
customer, the subsidiary's sales should easily exceed SEK 100m, in our view.
Mind you, FY24 group sales came in at SEK 223m. More importantly,
Scandiflash operates highly profitable (FY'23 EBITDA margin: 32%),
therefore the strong growth should substantially support the group's
profitability, in our view.
Strong defence newsflow. With a likely new government to be formed in
Germany by the conservative CDU (Christian Democratic Union) and
social-democratic SPD (Social-Democratic Party), early coalition talks have
grown around a massive defence and infrastructure spending bazooka of up to
EUR 1tn (c. SEK 11tn), which would support equipment suppliers across Europe.
With its recently established German subsidiary (Astor Group Deutschland
GmbH) Astor has laid the foundation to get a piece of the pie. Significantly
increasing defence budgets should be in the cards across Europe with
president Trump repeatedly demanding European countries to take care of
their own defence and stop relying on the US.
Our view remains, that NATO countries are on an irreversible path to
massively increase defence spendings for at least another decade, providing
defence exposed companies with strong growth prospects for for the
foreseeable future. Thanks to its unique set-up and the ability to add
further companies/ technologies onto the group, we regard Astor as extremely
well positioned to capture this growth. In light of the well-filled M&A
pipeline highlighted during the company's recent earnings call and the CFO's
statement to not slow down acquisition efforts, we would expect further good
newsflow from M&A.
While the stock is likely to remain volatile, share price setbacks provide
great BUYing opportunities, in our view. We remain bullish and reiterate our
SEK 30 PT based on DCF with a BUY rating.
You can download the research here: http://www.more-ir.de/d/31984.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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2100902 14.03.2025 CET/CEST
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