Original-Research: Netfonds AG (von NuWays AG): Buy

Classification of NuWays AG to Netfonds AG

Company Name:	Netfonds AG
ISIN:	DE000A1MME74
Reason for the research:	Update
Recommendation:	Buy
from:	14.01.2025
Target price:	EUR 78.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Frederik Jarchow

Kickstart into FY25 with new record AuA and AuM; chg

Topic: Netfonds kicked off the year with strong positive newsflow i.e. a new record-AuA level of € 28.3bn and AuM exceeding € 4bn for the first time. Further, Netfonds will take over another fund initiator through its subsidiary GSR GmbH, as already announced at the end of last year. In detail:

With the new AuA record of 28.3bn at the end of FY24, Netfonds significantly exceeded our estimates of € 27.bn while AuM of € 4.05bn came in as expected (eNuW: € 4.0bn). Nevertheless, both figures are quite impressive as we increased our estimates for both figures more than once throughout the year.

Thanks to the strong AuA growth, the given guidance for FY24 of € 220-230m in gross sales and € 41.5-43m in net sales can hence be taken as granted (eNuW new: € 230m gross sales; € 44m net sales). Even better, the record AuA levels end of last year strongly indicating further strong top- and bottomline, as asset inflows materialize with a slight delay. That said, the value-accretive M&A transactions of the undisclosed fund initiator and others (i.e. MFK and Comfort Finance) should further fuel top- and bottom line growth in FY25 and beyond. For FY25, we expect 51m net sales (€ 260m gross sales) inline with management's new guidance of “dynamic double-digit yoy growth”. As the scale effects of the platform business kicking in, EBITDA should grow exponentially to € 17m (eNuW).

On the back of 1) the strong ongoing operating performance, 2) Netfonds 360° finfire platform being the key mid- to long term growth and scalability driver and 3) further value accretive M&A transactions, we see Netfonds well on track to reach its mid-term target of € 59m net sales (vs eNuW: € 62m) and € 23m EBITDA (vs eNuW: € 22m) by FY26.

Apart from that and in order to finance the takeover of a fund initiator through its subsidiary GSR (takeover price: mid single-digit million amount), but also further potential acquisitions, Netfonds successfully issued an unsecured bond with a volume € 15m million (coupon: 7.00% p.a.) end of last year. This acquisition is underlining once again that Netfonds is playing an active role in the market consolidation. We expect to see further acquisitions in FY25.

BUY with new PT of € 78.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31617.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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