Scandinavian Astor Group AB (von NuWays AG): BUY

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Original-Research: Scandinavian Astor Group AB - from NuWays AG

14.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
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.

Classification of NuWays AG to Scandinavian Astor Group AB

Company Name: Scandinavian Astor Group AB ISIN: SE0019175274

Reason for the research: Update
Recommendation: BUY
from: 14.05.2025
Target price: SEK 40.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

Q1 confirms strong organic growth momentum for 2025, PT up

Q1 sales rose by 105% yoy to SEK 75m, whereof SEK 24m came from past M&A. More importantly, this implies 38% yoy organic sales growth, showing the strong underlying rise in demand for Astor's products and services. Against this backdrop, our organic sales growth assumption of 30% yoy (old: 28% yoy) for FY'25e could still turn out to be conservative, also because Q1 is seasonally less strong. On a segmental basis, the Tech segment increased sales from SEK 0.6m to SEK 24m, mainly driven by the consolidation of Scandiflash, whereas the Industry segment grew sales by 50% yoy to SEK 54m.

Order intake grew proportionately to SEK 67m (0.9x book-to-bill), whose rapid increase should also stem 2/3 from past M&A and 1/3 from organic OI growth. The current order backlog thus stands at SEK 200m, of which SEK 150m are due for delivery in FY'25e, providing excellent visibility.

Profitability showed an even stronger performance with group EBITDA expanding by 282% yoy to SEK 8.1m (11% margin, + 5pp yoy). Key drivers, among other things, were (1) the consolidation of Scandiflash into the Tech Segment, raising the EBITDA margin to 14.1% (vs. negative in Q1'24), (2) a 2.2pp yoy EBITDA margin expansion at the Industry segment to 13.7%, driven by a mix of margin accretive acquisitions and operating leverage and (3) a better coverage and a reduction of overhead holding expenses (SEK 1.6m in Q1 vs. SEK 1.7m in Q1'24).

Consequently, CFO expanded to SEK 6.7m (83% of EBITDA cash conversion) and FCF arrived positive for the first time at SEK 1.5m and net debt amounted to SEK 40m (SEK 84m incl. leases). Mind you, the proceeds of the SEK 150m capital increase resolved at the end of March have flown in April and will thus will be reflected with Q2 results.

Astor started with strong momentum into FY'25e. With a well filled M&A war chest and plenty of acquisition target in the short-term M&A pipeline with a total size of SEK 500m in annual revenues, Astor looks set to continue strong inorganic growth. Also, Sweden's increased defence spending to 3.5% of GDP by 2030 (prev. target: 2.6% by 2030) should also bode well for continuously high organic sales growth. Therefore, we reiterate our BUY recommendation with an increased PT of SEK 40.00 (old: SEK 39.00), based on DCF

You can download the research here: http://www.more-ir.de/d/32596.pdf For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: [e-mail]
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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2136870 14.05.2025 CET/CEST

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Zusätzliche Unternehmensinformationen zur Scandinavian Astor Group Aktie

Die Scandinavian Astor Group Aktie wird zum Zeitpunkt der Veröffentlichung der Nachricht mit einem Plus von +7,31 % und einem Kurs von 2,79 auf Stuttgart (13. Mai 2025, 17:15 Uhr) gehandelt.

Auf 7 Tage gesehen hat sich der Kurs der Scandinavian Astor Group Aktie um +4,94 % verändert. Der Gewinn auf 30 Tage beträgt +48,53 %.

Die Marktkapitalisierung von Scandinavian Astor Group bezifferte sich zuletzt auf 210,11 Mio..

Rating: BUY
Analyst: