Original-Research: 029 Group SE (von NuWays AG): Halten
Original-Research: 029 Group SE - from NuWays AG
Classification of NuWays AG to 029 Group SE
Company Name: 029 Group SE
ISIN: DE000A2LQ2D0
Reason for the research: Update
Recommendation: Halten
from: 22.05.2024
Target price: EUR 14.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr
FY23 as expected // key holding with favourable developments
Topic: 029 published FY23 figures. As 029 holds only minority stakes and reports under German HGB (no mark-to-market valuation), it was a non-event. Yet, its key assets continue to perform well. As 029 had no divestments during FY23 (Emerald Stay was sold in Feb. 2024), the company generated no sales. Operating expenses amounted to roughly € 0.6m, slightly less than last year due to the absence of listing related costs. Going forward, we expect the annual cost base to come in at similar levels.
Yet, this does not include one-off expenses related to potential investments/divestments. While cash at hand stood at only € 10k at the end of the year, the € 1.6m inflow from the Emerald divestment should provide 029 with sufficient liquidity.
The group’s key assets, Limestone Capital and TRIP Drinks (eNuW: 95% of the implied fair NAV) remain on a strong growth path. TRIP (10% of NAV, eNuW), the CBD-infused drink is available at more than 25k stores across the UK, France and the US. As a result, sales have grown at 390% p.a. during the past two years to roughly GBP 20m. Despite the changed interest rate environment, we would expect any potentially upcoming funding rounds to value the company at more than € 140m (industry’s transaction median stands at ~ 10x sales). TRIP is well on the way to continuing its growth trajectory. If TRIP keeps growth at a similar level, the valuation has a lot of room for upside. They just launched a new nonCBD-based product (“Mindful Blend”) and focus on further expansion (e.g., in the US).
Limestone Capital (85% of NAV, eNuW) seems well on track to expand its hotel portfolio. In fact, the company has just purchased a hotel in Madrid. Thanks to its ongoing funding round, Limestone should be able to grow to 20 hotels, operated by its own brand aethos, until the end of 2025e, in our view.
First divestment completed. As a reminder, in February, 029 sold it's 5.2% stake in Emerald Stay. The transaction is expected to generate roughly € 1.6m gross proceeds, reflecting a realized multiple on the FY23 book value of around 2.3x and 2.7x on the invested capital. This was carried by the recently strongly increasing number of vacation rentals on the platform (FY23e: +71% yoy), in our view. The € 0.9m book gain should positively impact 029’s FY24 H1 figures due at the end of September.
We confirm our HOLD rating with an unchanged € 14 PT based on based on a sum-of-the-parts valuation (see page 2) with a 5% holding discount.
You can download the research here:
http://www.more-ir.de/d/29845.pdf
For additional information visit our website
www.nuways-ag.com/research.
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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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.
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
The most important financial data at a glance | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 0,00 | 0,00 | 0,01 | 0,00 | 0,00 | 0,05 | 0,00 | |
EBITDA1,2 | 0,00 | 0,00 | 0,00 | -0,02 | -0,66 | -5,59 | 0,00 | |
EBITDA-Margin3 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | -11.180,00 | 0,00 | |
EBIT1,4 | 0,00 | 0,00 | 0,00 | -0,02 | -0,66 | -5,59 | 0,00 | |
EBIT-Margin5 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | -11.180,00 | 0,00 | |
Net Profit (Loss)1 | 0,00 | 0,00 | 0,00 | -0,02 | -0,66 | -5,62 | 0,00 | |
Net-Margin6 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | -11.240,00 | 0,00 | |
Cashflow1,7 | 0,00 | 0,00 | 0,01 | -0,02 | -0,39 | -0,54 | 0,00 | |
Earnings per share8 | 0,00 | 0,00 | 0,00 | 0,00 | -0,13 | -1,12 | -0,45 | |
Dividend per share8 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: Forvis Mazars
All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.
INVESTOR-INFORMATION | ||||||
©boersengefluester.de | ||||||
029 Group | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
A2LQ2D | DE000A2LQ2D0 | SE | 77,00 Mio € | 10.08.2022 | 9F4MGCF3+VR |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
0,00 | 36,78 | 0,00 | -33,70 | 4,92 | -142,86 | 1.673,91 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
0,00 | 0,00 | 0,00 | 0,00% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
10.06.2024 | 27.09.2024 | 24.04.2024 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
-0,21% | +2,50% | -2,53% | -3,14% | +156,67% |
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