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Original-Research: lodgyslife AG - from Parmantier & Cie. GmbH
02.10.2024 / 11:21 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 Parmantier & Cie. GmbH to lodgyslife AG
Company Name: lodgyslife AG
ISIN: DE000A2LQ710
Reason for the research: Start of Coverage
Recommendation: Buy
from: 02.10.2024
Target price: EUR 28.60
Target price on sight of: 12 Month
Last rating change: Initiation
Analyst: Benedikt Krämer
Size matters - lodgyslife acts as a value-added consolidator in the
fragmented growth market of camping
lodgyslife AG is pursuing an aggressive roll-up strategy in the growing but
highly fragmented camping market in the DACH region. The company has an
institutional financing line of EUR 50 million to realise its rapid inorganic
growth. This creates value for the investor in two ways: 1) The target
campsites (including family-run campsites) have untapped potential in terms
of marketing, digitalisation and process efficiency. 2) For
non-professionalised individual campsites, EBITDA multiples of only 5-7x can
be paid on the market, while PE investors in other European countries have
shown a willingness to pay EV/EBITDA multiples of between 11x and 13x for
large portfolios. A sale would therefore be an interesting exit option in
the medium to long term, which is not only fuelled by pure consolidation.
Although achieving a critical size through inorganic growth is necessary to
become interesting for PE investors, the operational improvements
(efficiency, digitalisation) increase EBITDA and thus act as 'leverage'.
The German-speaking camping market offers attractive growth (approx. 5% p.a.
volume) and - due to the fragmented market structure (many family
businesses) and pressure to modernise and professionalise - also attractive
prices for consolidators. For lodgyslife, it is important to utilise this
environment and acquire attractive locations or take them over as tenants
before other buyers come onto the scene.
Lodgyslife has proven that it can realise hidden (margin) potential at the
acquired campsites. At Campingplatz Jungfrau (CH), which was acquired in
2020, the EBITDA margin was increased from 9% (2019) to 25% (2023) by
optimising the offering, marketing, operational processes and selective
investments. Co-founder/CEO René Müller has already been successful three
times with roll-up business models.
Company outlook: Lodgyslife plans to make 5 to 10 acquisitions per year in
the medium term in order to capitalise on the opportunities that arise in
the market.
For more information see the full report.
LEGAL NOTICE This research report ('Investment Recommendation') was prepared
by Parmantier & Cie. Research, with contributions from Mr. Parmantier and
Mr. Krämer, and is distributed solely by Parmantier & Cie. Research. It is
intended only for the recipient and may not be shared with other entities,
even if they are part of the same corporate group, without prior written
consent. The report contains selected information and makes no claim to
completeness. The investment recommendation is based on publicly available
information ('Information'), which is considered correct and complete.
However, Parmantier & Cie. Research does not verify or guarantee the
accuracy or completeness of this information. Any potential errors or
omissions do not create liability for Parmantier & Cie. Research, which
assumes no liability for direct, indirect, or consequential damages. In
particular, Parmantier & Cie. Research accepts no responsibility for the
accuracy of statements, forecasts, or other content in this investment
recommendation concerning the analyzed companies, their subsidiaries,
strategies, economic conditions, market and competitive positions,
regulatory frameworks, and similar factors. While care has been taken in
preparing this report, errors or omissions cannot be excluded. Parmantier &
Cie. Research, including its partners and employees, accepts no liability
for the accuracy or completeness of statements, estimates, or conclusions
derived from the provided information in this investment recommendation. To
the extent this investment recommendation is provided as part of an existing
contractual relationship (e.g., financial advisory services), Parmantier &
Cie. Research's liability is limited to cases of gross negligence or
intentional misconduct. In cases of breach of essential obligations,
liability is limited to simple negligence but is restricted to foreseeable
and typical damages in all cases. This investment recommendation does not
constitute an offer or solicitation to buy or sell securities. Partners,
managing directors, or employees of Parmantier & Cie. Research or its
subsidiaries may hold responsible positions, such as supervisory board
mandates, in the companies mentioned in this report. The opinions expressed
in this investment recommendation may change without notice and reflect the
personal view of the research analyst. Unless otherwise stated, no part of
the research analyst's compensation is directly or indirectly related to the
recommendations or opinions contained in this report. All rights reserved.
You can download the research here: http://www.more-ir.de/d/30975.pdf
Contact for questions:
Melba Victoria Grün
gruen@parmantiercie.com
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1999761 02.10.2024 CET/CEST
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