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Original-Research: THE NAGA GROUP AG - from NuWays AG
11.06.2025 / 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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invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to THE NAGA GROUP AG
Company Name: THE NAGA GROUP AG
ISIN: DE000A161NR7
Reason for the research: Update
Recommendation: BUY
from: 11.06.2025
Target price: EUR 1.20
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Final FY24 above prelims // Solid Q1 figures; chg
Last week, NAGA reported final FY24 figures that came in slightly above
prelims on top and bottom line.Further, the company reported preliminary Q1
figures.
* FY24 Sales came in at EUR 63.2m (-18% yoy), above preliminary sales of EUR
62.3m. The decline compared to the previous year is mainly coming from
the closure of loss-making non-core subsegments. FY24 EBITDA stood at EUR
9.0m (6% yoy vs EUR 8.5m preliminary EBITDA) resulting in an EBITDA-margin
of 14.3% (vs 11.5% in FY23), thanks to higher synergy effects from the
merger and increasing operational and marketing efficiency.
After the transition year 2024 that was mainly characterized by integration,
automation and efficiency processes, NAGA restarted its growth engine in
2025. First measures such as the cooperation with BVB and Mike Tyson were
already taken in Q4Ž24 and Q1Ž25. First effects on the topline were already
visible in Q1 figures:
* Q1Ž25 sales of EUR 16.4m (7% yoy) carried by increased avg daily trades
per customer of 2.31 (vs 2.09 in Q1Ž24) and an increased CLV of EUR 3,290
(vs EUR 2,880 in Q1Ž24). EBITDA came in at EUR 1.0m, burdened by increased
marketing spending that should start to materialize within the next
quarters, visible in growing topline and scale effects.
In order to fuel topline growth, NAGA is expected to further ramp-up
marketing expenses (according to the guidance by >50% yoy in FY25e and
another 18% yoy to EUR 39m in FY26e). As a result, management is expecting
topline growth of 19% to EUR 74m in FY25 (eNuW: EUR 77.3m) and another 32% to EUR
97.8m in FY26 (vs eNuW: EUR 92.7m). Thanks to expected further synergies,
efficiency and scale effects, EBITDA should increase to EUR 12.5m in FY25 (vs
eNuW: EUR 12.4m) and EUR 27.6m in FY26 (vs eNuW: EUR 19.1m) implying margins of
17% and 28%.
With Q1 figures the company delivered a solid start into the year.
Nevertheless, it needs further sequential improvement to achieve the
guidance. We are convinced that the management took the right measures and
see the company on track to deliver.
BUY with an unchanged PT of EUR 1.20 based on DCF.
You can download the research here: http://www.more-ir.de/d/32830.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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2153434 11.06.2025 CET/CEST
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