Original-Research: INDUS Holding AG (von NuWays AG): BUY
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^ Original-Research: INDUS Holding AG - from NuWays AG Classification of NuWays AG to INDUS Holding AG Company Name: INDUS Holding AG ISIN: DE0006200108 Reason for the research: Update Recommendation: BUY from: 15.03.2024 Target price: 36.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Christian Sandherr Bolt-on acquisitions into global megatrends; chg. Topic: INDUS successfully completed the share repurchase program announced on February 21st. Further, the German conglomerate expanded their portfolio in the field of infrastructure networks and AI-based industrial automation. Share buyback at an attractive price: During the period from February 22nd to March 1st, INDUS conducted a public buyback for 1.1m shares at a price of EUR 23 per share, which are now held as treasury shares. The volume amounts to EUR 25.3m in aggregate or approximately 4.09% of the company's share capital. At the current trading price INDUS offers an attractive return on investment capital, thus we view the buyback as a good capital allocation decision. Investment into Germany's future infrastructure: INDUS announced the successful acquisition of the remaining 50% stake in Hauff-Technik GRIDCOM (sales: EUR 21m). By that, they are strengthening the existing portfolio in the field of infrastructure networks with the subsidiaries Weigand Bau GmbH and Turmbau Steffens & Nölle GmbH. Hauff-Technik GRIDCOM produces passive components for the fiberoptic infrastructure. INDUS became already in 1986 the sole shareholder of Hauff-Technik GmbH & Co. KG, which acquired 50% of Hauff-Technik GRIDCOM in 2016. While the purchase price was not disclosed, we would expect it to be in the mid single-digit EURm range for the 50% stake. Investment in AI-based industrial automation: INDUS acquired Gestalt Robotics GmbH, a specialist in the field of AI-based automation for industrial applications (sales: EUR 5m). We expect the acquisition price to be in the low to mid single-digit EURm range. By acquiring Gestalt Robotics, INDUS is expanding its engineering segment and lays the foundation to profit from the fast growing AI market. Attractive cashflow generation: INDUS delivered a preliminary FY23 FCF north of EUR 190m, materially improving yoy (FY22: EUR 102m) and exceeding the management target of EUR 100m, thanks to further noticeable working capital normalizations. Supported by the divestment of the loss-making automotive-related business in FY23, we expect INDUS to deliver FCF of EUR 100m in a normalized year, making it a cash cow with an attractive normalized FCF-Yield of c. 9%. INDUS remains attractively priced trading at only 4.3x EV/EBITDA 2024e, which is 28% below its 10y historical average. Hence, we reiterate BUY with an unchanged PT of EUR 36 based on FCFY 2024e. You can download the research here: http://www.more-ir.de/d/29165.pdf For additional information visit our website www.nuways-ag.com/research. Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
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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