Classification of NuWays AG to Nynomic AG

Company Name:	Nynomic AG
ISIN:	DE000A0MSN11
Reason for the research:	Update
Recommendation:	Buy
from:	13.11.2024
Target price:	EUR 44.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Muted prel. Q3 in line with expectations // guidance confirmed

Preliminary Q3 sales stood at € 24.3m, a roughly 21% yoy decline (9M: down 14% yoy) as expected and in line with previous quarters. The key drivers behind this were delayed product call-offs and certain budget-related project postponements into FY25e. This is the case for all three segments, the first time in several years. For instance, within Green Tech, end customers are reluctant to purchase high-end vehicles (e.g. combine harvesters) and systems. Within Clean Tech, customers in traditional silicon-based sectors are experiencing delays in new projects, as well as upgrades to existing systems, due to changes in the AI and memory markets.

Order intake in the third quarter came in at € 19.4m, largely flat yoy, which brings the company’s order book to € 54.6m at the end of September. With this, preliminary Q3 EBIT decreased sharply (76% yoy) to only € 0.9m, delivering a 3.7% margin (9M € 5.1m, 7.1% margin), reflecting the lower fixed cost coverage.

Confirmed FY24e guidance (€ 100-110m sales and 7-9% EBIT margin) implies a strong Q4. As previously communicated, management expects a disproportionally strong Q4 due to confirmed call- off dates of formerly delayed orders. Hence, the mid points of the guidance imply € 33m sales (-4% yoy) and a 11% EBIT margin (-9.7pp yoy).

Nynomic's resilience amid current challenges is evident, with no order cancellations and steady demand, signaling these issues are likely temporary. Some € 11m in orders originally expected for H2 are now set for recognition in 2025. Beyond FY24e, Nynomic is positioned for strong growth throughout the next few years. By FY26e, we expect € 141m sales and an EBIT margin exceeding 15%, which is driven by several factors: deferred revenue from postponed orders, recent product launches (such as TactiScan, LabScanner Plus, and FETTE’s tablet press), and a recovery in core markets like semiconductors, medical devices, and pharmaceuticals.

Management reaffirms its mid-term growth targets, which were set last year, and expects sustained growth in the 3-5 year horizon. The company is targeting € 200m in sales and an EBIT margin of 16-19%, supported by a mix of organic expansion and strategic acquisitions. This focus on both internal innovation and complementary acquisitions positions Nynomic well to capitalize on growing industry demand, making it an appealing investment as it heads into a promising phase of growth.

Conclusion: Although Nynomic faces short-term challenges, leading to a second transition year, its underlying strength and growth path remains attractive. Investors should consider the expected recovery in 2025, driven by the realization of postponed orders and a robust lineup of new projects.

We hence confirm our BUY rating with an unchanged € 44 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/31295.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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