Original-Research
INDUS Holding AG (von NuWays AG): Kaufen
- Original-Research: INDUS Holding AG - von NuWays AG
- Gemischte Q1-Ergebnisse // starker FCF-Generierung; Schätzungsänderung
- INDUS bleibt ein attraktives Investment mit Kaufempfehlung und Kursziel von EUR 36.00
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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: Kaufen
from: 15.05.2024
Target price: EUR 36.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr
Mixed Q1 results // strong FCF generation; chg. est.
Topic: INDUS reported a mixed Q1 with sales below but EBIT above estimates as well as strong free cashflow supported by a lower seasonal working capital increase.
Q1 sales decreased by 9% yoy to EUR 410m (eNuW: EUR 434m) due to customers' current reluctance to buy and spend as a result of the weak German economy. Q1 EBIT was down 40% yoy to EUR 26.7m (eNuW:
EUR 25.3m), implying a margin of 6.5% (-3.4pp) driven by neg. op. leverage as well as pressure from significantly higher wages and salaries. Mind you Q1 FY23 was an exceptionally strong quarter,
which also benefited from decreased material costs within the Materials segment. Positive, while sales in the Infrastructure segment declined 6.8% yoy to EUR 132m, EBIT rose to EUR 11.4m (Q1 FY23:
EUR 10.7m) supported by internal efficiency gains.
Strong cash generation: Free cashflow in the first quarter came in at EUR 6.1m (Q1 FY23: EUR 7.5) driven by a lower seasonal working capital increase due to the stabilization of supply chains and
lower procurement prices. Mind you, last years' FCF includes a EUR 14.4m one-time cash inflow from a property sale.
FY guidance confirmed. Management confirmed its FY24e guidance of EUR 1.85-1.95m (eNuW: EUR 1.85m) revenue and EUR 145-165m EBIT (eNuW: EUR 157m), despite the challenging start into the year, which
was largely anticipated by the market. In our view, the guidance seems plausible, however we expect sales to come in at the lower end of the guidance range due to an increasing pressure on selling
prices in the Materials segment. In addition, the outlook for the construction sector remains cautious, as the German construction industry federation (HDB) expects a 3.5% decline in real-term
sales in 2024.
INDUS remains an attractive investment case and dividend-stock for the mid-term. Mind you, management proposed a dividend of EUR 1.20 per share (AGM on 22 May), making INDUS an attractive dividend
stock with a yield of 4.4% based on yesterday's closing price. Due to the divestment of the lossmaking automotive business in FY23 and an ongoing solid operating business, we expect a further
dividend rise for the current fiscal year (eNuW: EUR 1.40).
INDUS remains a BUY with an unchanged EUR 36 PT based on FCFY 2024e as (1) shares seem attractively valued trading at 4.7x EV/EBITDA 2024e, which is 23% below the 10-year historical average, (2)
INDUS is generating double-digit ROCEs and (3) has a strong future dividend yield potential.
You can download the research here:
http://www.more-ir.de/d/29747.pdf
For additional information visit our website
www.nuways-ag.com/research.
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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. ++++++++++
transmitted by 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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Die INDUS Holding Aktie wird zum Zeitpunkt der Veröffentlichung der Nachricht mit einem Plus von +0,18 % und einem Kurs von 27,80EUR auf Tradegate (15. Mai 2024, 09:31 Uhr) gehandelt.
Analyst: