(MENAFN- EQS Group) Original-Research: Nynomic - from NuWays AGClassification of NuWays AG to NynomicCompany Name: NynomicISIN: DE000A0MSN11Reason for the research: UpdateRecommendation: Kaufenfrom: 28.03.2024Target price: EUR 52.00Target price on sight of: 12 MonatenLast rating change: Analyst: Christian SandherrStrong Q4 profitability // conservative initial FY24 guidance; chg. Q4 sales increased by 5% yoy to € 34.6m (eNuW € 37.6m) as the company wasable to book several development projects towards the end of the year,realized first revenues from larger plant phenotyping orders (Green Tech FYsegment sales +44% yoy to ~ €25m) and overall solid demand across thegroup, especially from its semiconductor customers. FY23 grew by 1% yoy to€ 118m, meeting the company's guidance of“single-digit” yoy growth butfalling slightly short of market expectations of € 121.5m. The Q4 EBIT margin (seasonally strongest quarter) came in at 20.5% (+6.6ppyoy), meeting our and market estimates; FY23 EBIT margin grew 0.2pp yoy to13.1%, in line with the guidance and consensus. The margin increase wasdespite further investments into future growth (R&D and personal expenses+5 and +13% yoy) mainly as a result of an improving product mix, visible inthe strong gross margin improvement; +4.9pp yoy to 63.7%. While the order backlog stood at only € 54m (FY23 book-to-bill ratio of0.7x), it is important to note the lumpy (partially due to the sizes ofindividual orders) nature of the business. We hence see no structuralheadwinds implied in this figure. In fact, during the earnings callmanagement pointed towards improving order intake during H1. Management released a rather muted FY24 sales guidance (EBIT margin tofurther 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, theinitial guidance should be on the conservative side as the company shouldbe able to tap several pockets of growth, including (1) unbroken demandfrom semi customers, (2) fulfilment precision farming orders, (3) TactiScangaining traction and (4) a structurally growing medtech market. Acquisitions to potentially add onto growth. As per its Buy & Buildstrategy, Nynomic is seen to acquire 1-2 companies during the next six totwelve months, in our view. The focus should lie on expanding itstechnology and solutions portfolio. While the last acquisitions were rathersmaller the company's balance sheet would also allow larger targets with upto € 20m sales. This bodes well with the company's mid-term targets of €200m sales and an EBIT margin of 16-19%. We confirm our BUY rating with a new € 52 PT (old: € 54).You can download the research here:For additional information visit our websiteContact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: NuWays AG - Equity ResearchWeb: Email: ...LinkedIn: Adresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.
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