Original-Research: LION E-Mobility AG (von NuWays AG): BUY

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Original-Research: LION E-Mobility AG - from NuWays AG

15.08.2025 / 09:00 CET/CEST
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Classification of NuWays AG to LION E-Mobility AG

     Company Name:                LION E-Mobility AG
     ISIN:                        CH0560888270

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        15.08.2025
     Target price:                EUR 2.90
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

H1 underpins confidence in successful op. turnaround; chg.

Following a particularly weak FY24 with plunging sales amid largely
distressed end markets (falling battery prices with the resulting "wait and
see" mentality of customers and several insolvencies) LION looks set to have
passed the trough, in regards to reported figures and new project
developments. H1 sales of EUR 10.4m were up 71% yoy as the company benefitted
from the cyclical upturn in demand for battery-packs used in mobility
solutions.

More importantly, management was able to turn the bottom-line around,
improving EBITDA from a EUR 4.8m loss a year ago to a positive EUR 1.3m thanks
to a tight grip on costs, the absence of development costs for the new
chemistry cells but mainly positive implications from a better fix-cost
coverage. The EBITDA margin for H1 stood at 12.1%, clearly ahead of our
estimates for FY25 (0.9%). Operating cash flow also turned positive, EUR 3.3m
compared to a EUR 5.8m deficit last year thanks to the notably improved
operational performance as well as further optimized inventory levels.

Thanks to good visibility through the order book which should allow a
continuation of the momentum, management confirmed its FY25 guidance of EUR
28-35m sales (eNuW: EUR 32m) and positive EBITDA (eNuW: break-even).

Strategic partnership with LeapEnergy to unlock access to the thriving but
highly competitive energy storage market. This deal grants LION exclusive
BESS distribution and service rights in major European markets and Canada,
diversifying beyond e-mobility into a fast-growing segment. Combining
LeapEnergy's manufacturing scale with LION's integration expertise and
market access creates new, scalable revenue streams, strengthens growth
visibility, and enhances the investment case through portfolio expansion and
improved margin potential. This bodes well with the announced strategic
partnership with Münchner Solarkraftwerke, which has over 40 hybrid (PV +
BESS) projects in its pipeline. As most of those projects are at an early
stage, potential revenue recognition will span over several years, starting
with H2 2026 (eNuW).

Immersion cooled LIGHT battery update. While the project with the premium
OEM is experiencing delays due to adjustments to their Innovation projects
(~1 year as mentioned during the earnings call), LION launched a
new/additional development project with a German truck manufacturer looking
to create an electric truck that can sufficiently recharge its battery
during mandatory breaks to cover the distance between two mandatory breaks.
Further, LION is testing integration with advanced heat exchanger and pump
technology.

Our take: LION's H1 performance with a return to profitability and positive
cash flows underscores the likelihood of a successful operational
turnaround. This coupled with BESS sales gaining momentum during the next
few years, LION looks well positioned to sustainably generate cash and hence
also turn the balance sheet around.

BUY with a EUR 2.9 PT based on DCF.



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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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2184368 15.08.2025 CET/CEST

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