Original-Research: EV Digital Invest AG (von NuWays AG): Kaufen

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Original-Research: EV Digital Invest AG - from NuWays AG

Classification of NuWays AG to EV Digital Invest AG

Company Name: EV Digital Invest AG

ISIN: DE000A3DD6W5

Reason for the research: Update

Recommendation: Kaufen

from: 26.04.2024

Target price: EUR 3.60

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Frederik Jarchow

Better than feared FY23; New product launch; chg

Topic: EVDI reported better than feared final FY23 figures and published a

guidance for FY24. Further, the company announced the launch of a new

attractive call money product for both, existing and new clients. In

detail:

Sales of EUR 4.1m (-20% yoy) stemming from 13 financed projects (vs eNuW: 14)

with an aggregated financed volume of EUR 39m (vs eNuW: EUR 39m) is below

previous years figure (FY22: EUR 5.2m) due to the overall weak industry, but

better than expected (eNuW: EUR 3.5m). Positively, the number of projects and

average volume per project improved significantly in H2 (vs H1) resulting

in EUR 2.6m sales (vs EUR 1.5m in H1), clearly demonstrating the ability to

deliver in challenging times.

EBITDA came in at negative EUR 3.9m (vs EUR -3.4m in FY22), slightly better

than expected (eNuW: EUR -4.2m), thanks to the stronger than anticipated

topline and lower personnel expenses, compensating for higher other

operating expenses that were burdened by one-offs stemming from

insolvencies and delays.

Attractive new product. Apart from FY23 figures, EVDI announced to have

launched a new call money account for new and existing customers with a

very attractive interest rate of 3.2% for up to EUR 5m per customer. This

offering is by far better than the comparable offering of most online banks

and brokers, especially for wealthy customers. Even better, we expect EVDI

to earn 0.2-0.25% on the volume (eNuW). With the new product, the company

is adding a low-risk alternative to its overall offering consisting of

property and ETF investments as well as wealth management. Due to the

attractiveness of the call-money offering, we expect significant customer

and asset inflows within the next quarters, allowing for a promising

cross-selling and conversion potential.

For FY24, management expects a revitalizing real-estate market mainly

driven by the anticipated reduction of interest rates. Due to the

uncertainty around that topic, management provides a rather conservative

guidance of EUR 4.9-5.8m in op. income (vs eNuW old: EUR 6.3m) and up to EUR

-1.9m EBITDA, (eNuW old: EUR -2m in EBITDA).

BUY (old: HOLD) on valuation with a reduced PT of EUR 3.60 (old: EUR 4.80),

based on DCF.

You can download the research here:

http://www.more-ir.de/d/29533.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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The result of this research does not constitute investment advice

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