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Original-Research: Nynomic - from NuWays AG
Classification of NuWays AG to Nynomic
Company Name: Nynomic
ISIN: DE000A0MSN11
Reason for the research: Update
Recommendation: Kaufen
from: 28.03.2024
Target price: EUR 52.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr
Strong Q4 profitability // conservative initial FY24 guidance; chg.
Q4 sales increased by 5% yoy to EUR 34.6m (eNuW EUR 37.6m) as the company was
able to book several development projects towards the end of the year,
realized first revenues from larger plant phenotyping orders (Green Tech FY
segment sales +44% yoy to ~ EUR25m) and overall solid demand across the
group, especially from its semiconductor customers. FY23 grew by 1% yoy to
EUR 118m, meeting the company's guidance of "single-digit" yoy growth but
falling slightly short of market expectations of EUR 121.5m.
The Q4 EBIT margin (seasonally strongest quarter) came in at 20.5% (+6.6pp
yoy), meeting our and market estimates; FY23 EBIT margin grew 0.2pp yoy to
13.1%, in line with the guidance and consensus. The margin increase was
despite further investments into future growth (R&D and personal expenses
+5 and +13% yoy) mainly as a result of an improving product mix, visible in
the strong gross margin improvement; +4.9pp yoy to 63.7%.
While the order backlog stood at only EUR 54m (FY23 book-to-bill ratio of
0.7x), it is important to note the lumpy (partially due to the sizes of
individual orders) nature of the business. We hence see no structural
headwinds implied in this figure. In fact, during the earnings call
management pointed towards improving order intake during H1.
Management released a rather muted FY24 sales guidance (EBIT margin to
further increase), expecting "at least single-digit percentage growth",
which already includes consolidation effects from last year's acquisitions
(eNuW 4% yoy growth). Yet, as highlighted during the earnings call, the
initial guidance should be on the conservative side as the company should
be able to tap several pockets of growth, including (1) unbroken demand
from semi customers, (2) fulfilment precision farming orders, (3) TactiScan
gaining traction and (4) a structurally growing medtech market.
Acquisitions to potentially add onto growth. As per its Buy & Build
strategy, Nynomic is seen to acquire 1-2 companies during the next six to
twelve months, in our view. The focus should lie on expanding its
technology and solutions portfolio. While the last acquisitions were rather
smaller the company's balance sheet would also allow larger targets with up
to EUR 20m sales. This bodes well with the company's mid-term targets of EUR
200m sales and an EBIT margin of 16-19%.
We confirm our BUY rating with a new EUR 52 PT (old: EUR 54).
You can download the research here:
http://www.more-ir.de/d/29275.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.
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