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Original-Research: MAX Automation SE - from NuWays AG

01.11.2024 / 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

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Classification of NuWays AG to MAX Automation SE

Company Name: MAX Automation SE

ISIN: DE000A2DA588

Reason for the research: Update

Recommendation: Buy

from: 01.11.2024

Target price: EUR 7.00

Target price on sight of: 12 months

Last rating change:

Analyst: Konstantin Völk

Guidance revision // muted Q3 ahead; chg. est. & PT

Topic: MAX will release its Q3 numbers on November 8th. We expect sales and

margins to remain muted. Further, on Tuesday evening, the company cut its

FY24e guidance.

Investment reluctance among customers puts pressure on MAX: due to the

current challenging macro, restrictive financing conditions and persistently

high price levels, customers hesitate to place orders. Order intake in

H1'24e fell by 14% to EUR 167m and backlog by 11% to EUR 184m. bdtronic is

particularly impacted as the demand for EVs slowed down in the recent

quarters. Consequently, we expect Q3 sales to decrease 9.9% yoy to EUR 90m.

EBITDA should come in at EUR 7.1m (eNuW), with a 7.9% margin.

Bdtronic impacted from cyclical demand: bdtronic has significantly expanded

its capacity in FY23 due to an extraordinarily strong demand for its

impregnation and dispensing machines and occupied c. 120 external services

on the peak to handle the rapidly increased order intake. However, as the

demand for electric vehicles in the US and Europe calmed down in H1'24, OEMs

hesitate to expand their EV capacities. Therefore, bdtronic's cyclical order

intake decreased sharply by 52% yoy to EUR 32m (H1'24 backlog EUR 34m, -56%

yoy). While bdtronic had to increase its capacity in FY23, they are now

suffering from overcapacity and external personnel can be reduced only

slowly and successively because of their idiosyncratic know-how within

specific projects. We expect the situation to remain challenging throughout

H2'24e and expect sales of EUR 17m and EUR 0.6m EBITDA in Q3 for bdtronic.

Elwema shows resilience: in contrast to bdtronic, Elwema's order intake

showed a very positive development and rose by 32% to EUR 40m in H1'24 thanks

to a solid demand for combustion engines in the US. Thanks to a steady

stream of follow-up orders and long lead times of 12-18 months, the company

secured already enough projects for FY25e.

FY24e guidance revised: MAX revised its forecast for the current fiscal year

due to a decline in order intake. Sales are now expected to come in at EUR

350-380m (previously: EUR 390-450m; eNuW old: EUR 378m) with an EBITDA in the

range of EUR 27-31m (previously: EUR 31-38m; eNuW old: EUR 31m). Despite the

challenging macroeconomic environment, the new guidance looks plausible in

our view (eNuW sales EUR 366m, EBITDA EUR 29m). Nevertheless, as mid-term

prospects remain intact, we reiterate BUY with a new PT of EUR 7.00 (old: EUR

7.50), based on DCF.

You can download the research here: http://www.more-ir.de/d/31161.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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2020525 01.11.2024 CET/CEST

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