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Original-Research: ASMALLWORLD AG - from NuWays AG
29.11.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
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.
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Classification of NuWays AG to ASMALLWORLD AG
Company Name: ASMALLWORLD AG
ISIN: CH0404880129
Reason for the research: Update
Recommendation: Buy
from: 29.11.2024
Target price: CHF 4.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch
Free membership and rebranding launched; chg. est & PT
Topic: On Wednesday, ASW announced the much expected rebranding, but more
importantly opened its social network to a broader audience by introducing a
free membership option. In detail:
New visual identity and logo: Following nearly two decades of an unchanged
logo, ASW's rebranding (see p. 2) highlights the stronger positioning as the
go-to brand for luxury travel. Moreover, the slogan 'Travel - Discover -
Belong' is introduced, which also textually combines the ASW community
('belong') with the anciallary offered services for travel ('travel',
'discover').
Free membership model to drive member base: Simultanously, ASW introduced a
fourth, free membership option which comes in with 90% of functions of the
premium membership. The paid options (Premium, Signature & Prestige) remain
broadly unchanged, however existing members now have the option to downgrade
to the free version, which could impact sales negatively in the short-term.
However, a potential downgrade comes with a loss of functions and benefits
which are liked by the members. More importantly, the reduced entry barriers
should ultimately drive member growth and with an upselling options. In
order to protect against scammers, bots and a potential loss of 'community
quality', ASW implemented safety measures such as member verification.
Increasing monetization: next to a broader user base with the potential to
upsell to a premium membership, further upselling potential to ASW's
services (e.g. ASW collection, ASW Private, etc.) should ultimately offset
the potential sales decline from membership downgrades. Moreover, attractive
third-party products (e.g. creditcard or cruise ship companies) offered
exclusively to ASW members should yield additional sales.
All in all, the aforementioned business model change should impact sales and
profitability (due to P&L effective pre-investments) in the short-term, but
ultimately offers the business model more operating leverage with
diversified and more profitable revenue streams thereafter. While this does
not happen over night, we expect the full effect by early 2026e, explaining
a FY'25e still below historical figures. Nevertheless, the stock is
attractive at current levels, offering a 8.5% FCFY'25e (19% FCFY'26e).
Against this backdrop, we reiterate our BUY recommendation with lower PT of
CHF 4.00 (old: CHF 4.30), based on DCF.
You can download the research here: http://www.more-ir.de/d/31445.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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2040829 29.11.2024 CET/CEST
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