Original-Research: INDUS Holding AG (von NuWays AG): BUY
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^ Original-Research: INDUS Holding AG - von NuWays AG Einstufung von NuWays AG zu INDUS Holding AG Unternehmen: INDUS Holding AG ISIN: DE0006200108 Anlass der Studie: Roadshow Feedback Empfehlung: BUY seit: 20.11.2023 Kursziel: EUR 34,00 Kursziel auf Sicht von: 12 Monaten Letzte Ratingänderung: Analyst: Christian Sandherr RS feedback: Strong free cashflows to support new investments Topic: On Friday, we hosted a digital roadshow with the CEO of INDUS. Here are the key takeaways: Free cashflow from continuing operations more than quadrupled yoy with EUR 106.1m at 9M 2023 (9M 2022: EUR 22.2m). Going forward, management aims to further reduce the working capital intensity to more normalized levels of 25-27% in Q4. Hence, FCF generation looks set to significantly outperform the annual target of EUR 100m (eNuW: EUR 126m). INDUS plans to invest EUR 50-70m next year in strategic acquisitions. The company wants to sharpen its focus on global megatrends like energy efficiency, recycling and agriculture engineering. Positively, valuation multiples in the PE market came down since 2021 as buyer hesitance in connection with increased financing costs prevailed. Order intake is set to remain at a strong level. Particularly, the subsidiary MBN Maschinenbaubetriebe Neugersdorf GmbH showed a positive dynamic in its order intake. The manufacturer for final vehicle assembly systems secured large orders from BMW and Audi for new factories in the US, thus creating sound visibility on future earnings. Positive price effect to revert. In FY23, INDUS benefited from lower material prices, especially in the Materials segment, which led to a segment EBIT margin of 10.4% at 9M. On group level, the material cost ratio declined by 4.3pp to 45.9%. However, maintaining double-digit margins in the segment will be challenging, as customers are starting to renegotiate in light of the deflating price levels. Wage inflation remains an issue. After the personnel expense ratio rose by 1.2pp yoy to 28.6% at 9M, further wage increases are in the books as unions are increasing the pressure. For example, the German labor union IG Metall recently started the negotiation for the steel industry demanding an 8.5% salary increase. As INDUS employs c. 10,000 employees of which c. 7,000 in Germany, management hence expects further pressure related to wage inflation in the upcoming year (eNuW: +0.27pp). Despite the aforementioned short-term headwinds, INDUS remains attractively priced trading at only 4.5x EV/EBITDA 2023e, which is 36% below its historical average. We reiterate our BUY rating with a new PT of EUR 34 (old: EUR 36) based on FCFY 2024e. Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/28335.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research. Kontakt für Rückfragen 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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