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Original-Research: EV Digital Invest AG - from NuWays AG
06.11.2024 / 09:01 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
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invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to EV Digital Invest AG
Company Name: EV Digital Invest AG
ISIN: DE000A3DD6W5
Reason for the research: Update
Recommendation: Buy
from: 06.11.2024
Target price: EUR 1.80
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Mixed H1 // Project defaults to burden business; chg.
Topic: Last week, EVDI published unaudited H1Ž24 figures that came as a
mixed bag: While topline showed slight improvements on low levels, the
bottom remained soft, still burdened by project defaults. In detail:
H1 sales came in at EUR 1.6m, which is above previous yearŽs figure of EUR 1.5m,
but inflated by c. EUR 0.3m that are directly depreciated in other operating
expenses as it is rather unlikely that the amount outstanding can be
collected. The adjusted sales figure of EUR 1.3m is still above our estimates
of EUR 1.1m, driven by higher financing volumes of EUR 13.7m (vs eNuW: EUR 13m)
and higher avg sales per project of EUR 0.21m (vs eNuW: EUR 0.14m).
EBITDA came in at negative EUR 2.2m (vs EUR -1.4m in H1Ž23), below expectations
of EUR -1.9m, mainly due to high legal costs and decreasing but still high
personnel expenses paired with low topline levels. Note that EUR 2.8m of the
other operating expenses are expenses from write-offs of receivables that
are offset by the c. 0.3m sales adjustment and the EUR 2.3m reduction of value
adjustments of receivables in other operating income.
Overall, the business of EVDI is still heavily burdened by the deteriorating
real-estate market with project defaults and project delays, construction
costs and real-estate prices normalizing slower than expected, and investors
of the senior tranches (mostly banks) of new projects being more selective
and reserved.
All that should further burden the business at least for the remainder of
FY24. EVDI hence confirmed its FY24 sales guidance of EUR 2.3-2.7m, which
imply only EUR 1.0-1.4m adjusted sales in FY24 (vs eNuW: EUR 1.5m).
Positively, we should have already seen the trough in the real-estate market
and the recovery is already ongoing. Further, EVDI has diversified its
business by offering new products that are rather contrary to real-estate
investments such as deposit accounts, renewable energy projects, ETFs as
well as holistic wealth management. This initiated diversification should
reduce the dependency from the very cyclical real-estate project business,
stabilizing the income and margins going forward.
In light of the recent stock price weakness, we change to BUY with a reduced
PT of EUR 1.80, based on DCF.
You can download the research here: http://www.more-ir.de/d/31193.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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2023287 06.11.2024 CET/CEST
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