Original-Research: INDUS Holding AG (von Parmantier & Cie. GmbH): Buy

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Original-Research: INDUS Holding AG - from Parmantier & Cie. GmbH

19.05.2025 / 11:08 CET/CEST

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

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Classification of Parmantier & Cie. GmbH to INDUS Holding AG

Company Name: INDUS Holding AG

ISIN: DE0006200108

Reason for the research: Update Q1 2025

Recommendation: Buy

from: 19.05.2025

Target price: 32,25 Euro

Target price on sight of: 12 month

Last rating change: no change

Analyst: Daniel Großjohann, Thomas Schießle

Q1 2025 impacted by economic environment - indirect consequences of US

tariff policy lead to forecast adjustment

The Q1 figures reflected economic and seasonal effects. Sales (EUR402.4

million; -1.9%) and adjusted EBITA (EUR24.9 million; -21%) were weaker than in

Q1 2024, as expected. A few days before the figures were published, INDUS

had already referred in an ad hoc announcement to supply chain problems

indirectly attributable to US tariff policy. While INDUS is protected

against US tariffs by a local-to-local strategy, Chinese countermeasures -

specifically export controls on tungsten - have caused uncertainty regarding

future tungsten deliveries at its highest-revenue subsidiary, BETEK. We

continue to expect an economic recovery in the second half of the year, but

are adjusting our revenue forecast for 2025. Even based on the updated

estimates, INDUS is attractively valued with a 2025 P/E ratio of 9.9 and a

dividend yield of over 5%.

Both order intake (EUR455.1 million; .6%) and order backlog (EUR664.5 million;

.4%) showed growth at Group level in Q1. However, these are mainly

attributable to two subsidiaries in the Engineering segment and are

therefore of limited significance. Nevertheless, the sales guidance for the

Infrastructure segment has already been raised slightly following a good

sales performance in Q1.

INDUS strengthened its position in the second tier in Q1 with three

acquisitions (HBS, Kettler and Electro Trading), investing a total of EUR11.2

million. The balance sheet remains solid, with an equity ratio of 38.8% as

of 31 March 2025.

Q1 EPS of EUR0.63 (Q1 24: EUR0.38) was positively influenced by a one-off tax

effect.

Outlook: For the 2025 financial year, INDUS is planning sales of between

EUR1.70 billion and EUR1.85 billion (previously EUR1.75 billion to EUR1.85 billion),

with adjusted EBITA now expected to be between EUR130 million and EUR165 million.

This corresponds to an adjusted EBITA margin of between 7.5% and 9%

(previously: 8.5% to 10%).

DISCLAIMER

LEGAL NOTICE

This research report ('Investment Recommendation') was prepared by

Parmantier & Cie. Research, with contributions from Mr. Grossjohann, and is

distributed solely by Parmantier & Cie. Research. It is intended only for

the recipient and may not be shared with other entities, even if they are

part of the same corporate group, without prior written consent. The report

contains selected information and makes no claim to completeness. The

investment recommendation is based on publicly available information

('Information'), which is considered correct and complete. However,

Parmantier & Cie. Research does not verify or guarantee the accuracy or

completeness of this information. Any potential errors or omissions do not

create liability for Parmantier & Cie. Research, which assumes no liability

for direct, indirect, or consequential damages.

In particular, Parmantier & Cie. Research accepts no responsibility for the

accuracy of statements, forecasts, or other content in this investment

recommendation concerning the analyzed companies, their subsidiaries,

strategies, economic conditions, market and competitive positions,

regulatory frameworks, and similar factors. While care has been taken in

preparing this report, errors or omissions cannot be excluded. Parmantier &

Cie. Research, including its partners and employees, accepts no liability

for the accuracy or completeness of statements, estimates, or conclusions

derived from the provided information in this investment recommendation.

To the extent this investment recommendation is provided as part of an

existing contractual relationship (e.g., financial advisory services),

Parmantier & Cie. Research's liability is limited to cases of gross

negligence or intentional misconduct. In cases of breach of essential

obligations, liability is limited to simple negligence but is restricted to

foreseeable and typical damages in all cases. This investment recommendation

does not constitute an offer or solicitation to buy or sell securities.

Partners, managing directors, or employees of Parmantier & Cie. Research or

its subsidiaries may hold responsible positions, such as supervisory board

mandates, in the companies mentioned in this report. The opinions expressed

in this investment recommendation may change without notice and reflect the

personal view of the research analyst. Unless otherwise stated, no part of

the research analyst's compensation is directly or indirectly related to the

recommendations or opinions contained in this report. All rights reserved.

You can download the research here: http://www.more-ir.de/d/32656.pdf

Contact for questions:

Kontakt:

PARMANTIER & Cie. GmbH

info@parmantiercie.com

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2140610 19.05.2025 CET/CEST

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