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Original-Research: Scandinavian Astor group AB - from NuWays AG
26.06.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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: 26.06.2025
Target price: EUR 56.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch
SEK 320m capital increase to stem growth; chg. est. & PT
Astor issued 8.4m new shares (+16%) at SEK 38 per share, yielding gross
proceeds of SEK 320m, exceeding the original target of SEK 300m, via an
accelerated book building without subscription rights after market close on
Tuesday. In doing so, Astor communicated the following use of proceeds:
* 40% (c. SEK 130m) are for growth investments into the recently acquired
AMMUNITY in the form of CAPEX and working capital. This should give the
company the ability to roughly 6x its annual output (FY'24: SEK 105m) in
the mid-term (eNuW: capacity c. SEK 600 of annual sales). By taking this
further investment into account, the real acquisition multiple is
implied at 10.3x FY'24 EBITDA (vs. 4.4x excluding this investment),
which is still low for a defence company with such an enormous demand
profile. Furthermore, by assuming the mid-term sales of SEK 600m and a
constant EBITDA margin of 21% (i.e. SEK 126m annual EBITDA potential in
the mid-term), a total investment of SEK 163m (SEK 33m purchase price +
SEK 130m growth investments) seems highly sensible, in our view.
* 40% (c. SEK 130m) are reserved for future M&A, whose value accretion
cannot be asserted prior, but Astor's history as well as acquisition
strategy (high margin and niche focused dual-use/defence players at
favorable prices) point towards further value-accretive additions to the
group.
* 20% (c. SEK 65m) are planned for necessary growth investment into
Marstrom (Sweden's only composite material producer of scale) and
Oscilion (military drone and radar jammers) following large order intake
and potential follow-up orders. The investments will also be in the form
of working capital and CAPEX.
In sum, the capital raise further strengthens Astor's capitalization and
ability to act upon attractive opportunities and should overcompensate the
shareholders' dilution, in our view. In order to avoid additional
shareholder dilutions going forward and to make the capital structure more
efficient, the company also aims to issue debt (e.g. corporate bond) to
finance growth and/or M&A, for which there is ample room (eNuW: SEK 167m of
gross debt per Y/E'25e; 24% debt to equity), in our view.
Against this backdrop, we increase our CAPEX and WC estimates, but also our
organic sales growth assumption, which in sum leads to a higher DCF-based PT
of SEK 56.00 (old: SEK 54.00) despite a higher share count.
You can download the research here: http://www.more-ir.de/d/32914.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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2160868 26.06.2025 CET/CEST
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