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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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