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Original-Research: Netfonds AG - from NuWays AG

22.08.2024 / 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

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: BUY

from: 22.08.2024

Target price: EUR 59.00

Last rating change:

Analyst: Frederik Jarchow

Solid Q2 preliminary figures above estimates

Topic: Yesterday, Netfonds reported strong preliminary Q2 figures above our

estimates on both, top- and bottom line. The upper end of the guidance seems

in reach. In detail:

* Gross Sales grew by 20% yoy to EUR 56.5m, above out estimates of EUR 56m.

Main driver was the strong AuA and AuM development with new record

levels of EUR 26.2bn (+10% YTD; 15% yoy) and EUR 3.3bn (20% YTD; 18% yoy),

both well above our estimates of EUR 25.7bn and EUR 3.2bn (eNuW old).

Consequently, Netfonds should reach our estimates for FY24 of EUR 27bn AuA

and EUR 4.0bn AuM easily.

* EBITDA came in above estimates at EUR 2.0m (122% qoq, 37% yoy vs eNuW: EUR

1.6m), mainly driven by the topline growth paired with stable OPEX

compared to Q1, showing the strong operating leverage of the business

model

Going forward, we see further sequential growth on the back of 1) value

accretive smaller transactions (i.e. MFK and Comfort Finance) for very

reasonable prices (eNuW: 4-8x EBITDA) 2) the initiation of an own money

market fund with already above EUR 75m end of Q2 and 3) the acquisition of an

umbrella in Luxembourg. All that should start to materialize within

Q3/Q4Ž24. Hence, the confirmed FY24 guidance of EUR 220-230m in gross sales

and EUR 41.5-43m in net sales should be reached easily.

Consolidation of the insurance brokerage market in full swing. Apart from

the strong operating performance, the Groups proprietary, 360° finfire

platform is seen to fuel the market consolidation especially in the

insurance broker market that is, in contrary to the investment adviser

market, still highly fragmented. Thanks to finfire, the selling and managing

of insurance products is much easier unlocking enormous cross-selling

potentials, as the already onboarded investment adviser can additionally

offer a wide range of insurance products to its customers. finfire hence

remains the companyŽs key mid- to long term growth and scalability driver.

The expected strong organic growth momentum is expected to be accompanied by

further value-accretive M&A deals that should come at very reasonable price.

Overall, we see Netfonds well on track to reach its mid-term target of EUR 59m

net sales (vs eNuW: EUR 59m) and EUR 23m EBITDA (vs eNuW: EUR 20m) by FY26.

BUY with an unchanged PT of EUR 74.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/30589.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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1972749 22.08.2024 CET/CEST

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