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

Original-Research: Netfonds AG - from NuWays AG

21.03.2025 / 09:01 CET/CEST

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Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: Buy

from: 21.03.2025

Target price: EUR 78.00

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Strong FY24 prelims // Growth to continue; chg

Topic: Netfonds reported strong FY24 prelims beating our expectations for

sales, while AuA and EBITDA were bang in line with estimates. In detail:

Gross sales came in at EUR 238m (23% yoy), above our estimate of EUR 230m. Key

driver was the Regulatory & Technology business with an impressive 71% yoy

growth resulting in EUR 134m (vs eNuW: EUR 122m) overcompensating for the softer

Wholesale business that declined by 11% yoy to EUR 101m (vs eNuW: EUR 105m) and

the Miscellaneous business (-53% yoy to EUR 2.3m vs eNuW: EUR 3.3m). The overall

topline growth was mainly fueled by AuA growth of 19% to EUR 28.3bn (vs eNuW:

EUR 28.3bn). Thanks to scale effects, the material expenses ratio should have

declined to 80.7% (vs 81.0% in FY23) resulting in net sales of EUR 46m (17%

yoy vs eNuW: EUR 44m) that were above the guidance range of EUR 41-43m.

EBITDA stand at EUR 8.4m (71% yoy), in line with our estimate of EUR 8.5m,

mainly driven by the sound topline development compensating for higher than

anticipated OPEX of EUR 37.6m (9% yoy vs eNuW: EUR 35.6m) that should have been

a result of increasing personnel expenses (18% yoy to EUR 24.7m vs eNuW: EUR

23.7m) and decreasing other operating expenses (-5% to 13.0m vs eNuW: EUR

11.9m). Again, relatively to gross sales, the OPEX ratio decreased

significantly to 15.8% (vs 17.9% in FY23). EBT came in at EUR 2.2m (9% yoy vs

eNuW: EUR 1.7m) as a result of EUR 4.1m D&A and a financial result of EUR 0.1m.

With a strong finish in FY24, Netfonds continued the growth of the last

years. Thanks to further increasing AuAŽs and AuMŽs, driven by inflows as

well as the strong performance of stock markets in Q1Ž25, topline should

continue to grow. The anticipated growth should be strongly supported by

Netfonds proprietary, 360° finfire platform that is seen to fuel

consolidation of the insurance broker market that is, in contrary to the

investment adviser market, still highly fragmented. We consider finfire to

remain the Groups key mid- to long-term growth and scalability driver.

For FY25 we expect EUR 31.8bn AuA (thereof EUR 5bn more profitable AuM) leading

to EUR 54.7m net sales (EUR 263m gross sales) and EUR 16.2m EBITDA, in line with

managements guidance of EUR >50m net sales and "a disproportionately high

increase in EBITDA and EBIT".

BUY with an unchanged PT of EUR 78.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32040.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: [email protected]

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2104164 21.03.2025 CET/CEST

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Quelle: dpa-AFX