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Original-Research: MAX Automation SE - from NuWays AG

11.11.2024 / 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

result of this research does not constitute investment advice or an

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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: 11.11.2024

Target price: EUR 7.00

Target price on sight of: 12 months

Last rating change:

Analyst: Konstantin Völk

Muted Q3 numbers due to investment reluctance; chg. est.

Topic: MAX released its Q3 numbers last Friday with sales below but EBITDA

above our estimates.

Q3 sales came in at EUR 85m (eNuW: EUR 90m), a 15% decrease yoy due to a soft

order backlog and investment reluctance across all portfolio companies

except ELWEMA. EBITDA increased 17% to EUR 9.3m (eNuW: EUR 7.1m) due to a EUR 4.5m

profit from a litigation in connection with the sale of NSM Packtec in 2018.

However, adjusted by the effect from NSM Packtec, EBITDA would have been 39%

lower yoy with a 2.3ppts margin decrease, impacted by economies of scale,

wage inflation and product mix effects.

Order intake decreased 13% yoy to EUR 67m, leading to a low order backlog of EUR

165m (vs. EUR 206m in Q3'23). Major contributor to the reduction in order

backlog was bdtronic with a sharp decline to EUR 30m in Q3'24 (vs. EUR 76m in

Q3'23).

Bdtronic's sales decreased 15% yoy to EUR 22m in Q3 and EBITDA came in at EUR

-0.1m (EUR 3.8m in Q3'23) due to a low order intake in H1'24 affected by the

EV sales crisis. While bdtronic had to expand its capacities to handle the

rapid demand increase during FY23, they are now suffering from a higher cost

base and external personnel, which could only slowly be reduced to c. 30 end

of Q3'24 from c. 120 at the peak in FY23. Further, the company still has

impregnation orders from FY23 in the backlog with lower profitability that

will also have a negative impact in Q4'24e. Having said that, bdtronic is

still a leading expert in its field and once the cyclical demand recovers,

we expect profitability to normalize.

Vecoplan showed a flat sales development in Q3 (EUR 46m) but decreased its

EBITDA by 40% to EUR 3.4m due to a less favorable product mix, a higher

headcount and wage inflation. Order intake decreased by 8.9% attributable to

postponements from US customers related to the election (North America: 43%

of sales). We expect demand to increase in Q4'24e and modest growth for

FY25e.

MA micro: MAX Automation received c. EUR 70m cash inflow for the sale of MA

micro of which c. EUR 60m was used to reduce debt, lifting the equity ratio to

a healthy 51% (vs. 30% in Q3'23). This should lead to an interest expense

reduction of EUR 4-5m in FY25e (eNuW). Considering the recent deterioration of

MA micro's operating business, we don't expect significant earn-out

payments.

Reiterate BUY with an unchanged PT of EUR 7.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31253.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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2026361 11.11.2024 CET/CEST

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