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

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

08.05.2025 / 09:00 CET/CEST

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Classification of NuWays AG to EV Digital Invest AG

Company Name: EV Digital Invest AG

ISIN: DE000A3DD6W5

Reason for the research: Update

Recommendation: Under Review

from: 08.05.2025

Target price: n.a.

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Weak FY24 // Clouded outlook and tense liquidity situation; chg

Topic: EVDI published weak final FY24 figures without giving a guidance for

FY25. Further, the tense liquidity situation with a negative free cashflow

and low liquidity puts the company under pressure and the going concern in

question. In detail:

Sales of EUR 3.1m (-25% yoy) stemming mostly from 13 financed projects (vs 13

in FY23 vs eNuW: 12) with an aggregated financed volume of EUR 22m (-44% yoy)

came in below expectations (eNuW: EUR 27m) due to the ongoing overall weak

industry and sentiment burdened by still high construction costs,

restrictive bank lending and not exactly low financing costs compared to

real estate prices. Positively, H2 sales seem to have stabilized on levels

of EUR 1.5m (vs EUR 1.6m in H1), indicating that the through is reached.

EBITDA came in at negative EUR 4.8m (vs EUR -3.7m in FY23), which is even below

our estimate of EUR -4.1m, mainly due to softer topline and higher than

anticipated costs related to customer claims that are driving other OPEX (EUR

4.5m vs EUR 4.0m in FY23). Personnel expenses declined slightly to EUR 3.2m

(-12% yoy vs eNuW: EUR 3.6m).

Apart from that, EVDI has diversified its business in FY24 by offering new

products that are rather contrary to real-estate investments such as deposit

accounts, renewable energy projects, ETFs as well as holistic wealth

management. This initiated diversification should reduce the dependency from

the very cyclical real-estate project business, stabilizing the income and

margins going forward.

Tense liquidity situation. As the cash burn of the company is high, EVDI is

at the current stage dependent on further external capital injections. First

injections were provided end of March (EUR 0.5m). Furthermore, an LOI with the

main shareholder VdZ Berlin and another investor about another EUR 2.35m was

signed mid of April. With that, EVDI should be able to continue its

operations for the time being. Still, the current turmoil around the main

shareholder put this LOI at question in our view. Taking this into account

we see an immanent risk of insolvency.

On the back of the weak operating results and the clouded outlook for the

industry, paired with the tense liquidity situation and the pending risks

that customer claims cannot be solved soon, we take EVDI under review. Signs

of operating improvement, further capital injections and customer claims

that are off the table would change our view.

You can download the research here: http://www.more-ir.de/d/32512.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: 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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2132722 08.05.2025 CET/CEST

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