Original-Research: INDUS Holding AG (von NuWays AG): BUY

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Original-Research: INDUS Holding AG - from NuWays AG

15.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to INDUS Holding AG

Company Name: INDUS Holding AG

ISIN: DE0006200108

Reason for the research: Update

Recommendation: BUY

from: 15.05.2025

Target price: EUR 34.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Soft start into the year // order intake better than expected

Topic: INDUS released mixed Q1 figures with sales and adj. EBITA below our

expectations. However, a soft start into the year was already largely

anticipated and a solid order intake gives confidence for H2'25e.

Sales came in at EUR 402m (eNuW: EUR 409m), 1.9% below last year due to a

challenging economic environment. While sales in Infrastructure grew by 3.4%

to EUR 136m partly due to the acquisition of GRIDCOM, sales in Engineering

declined by 4.8% to EUR 123m, primarily as a result of lower sales in sorting

systems, clean room systems and measurement technology for vehicles.

Materials Solutions sales decreased by 4.1% to EUR 143m mainly due to the

discontinuation of IMECO.

Order intake increased 2.6% yoy to EUR 455m with a strong demand in

Engineering (.5% yoy) thanks to major long-term plant engineering orders

(automotive and logistics) compensating for a softer Infrastructure (-7.8%

yoy) and Materials Solution segment (-2.9% yoy). Order backlog increased by

4.4% yoy to EUR 665m but remains at a relatively low level.

Adj. EBITA came in at EUR 24.9m (eNuW: EUR 28.8m), a 21% decrease yoy with a

6.2% margin (-1.5pp yoy) mainly due to a weak Engineering segment.

Nonetheless, like last year, a gradual improvement throughout the year with

a strong Q4 is expected for Engineering. Overall, higher personnel costs

despite a lower number of employees as well as a slightly higher material

cost ratio (44.4% of sales vs. 44.1% in Q1'24) weighed on profitability in

the first quarter.

FCF decreased to EUR -23.6m from EUR 6.1m last year, due to a EUR 14.3m higher

seasonal increase in working capital but also higher investments.

FY'25e outlook: Last week, INDUS reduced its FY'25e guidance, especially due

to export controls on tungsten compounds from China, which puts pressure on

the supply chain of INDUS' largest holding BETEK (16% of FY'24 sales).

Management now expects sales in the range of EUR 1.70-1.85bn (eNuW: EUR 1.74bn)

and adj. EBITA between EUR 130-165m (eNuW: EUR 143m), which looks plausible to

us, as we already conservatively account for a tungsten carbide shortage in

H2'25e.

Reiterate BUY with an unchanged PT of EUR 34 per share, based on FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32610.pdf

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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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2138010 15.05.2025 CET/CEST

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