Original-Research: MAX Automation SE (von NuWays AG): Kaufen

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Original-Research: MAX Automation SE - from NuWays AG

Classification of NuWays AG to MAX Automation SE

Company Name: MAX Automation SE

ISIN: DE000A2DA588

Reason for the research: Update

Recommendation: Kaufen

from: 29.04.2024

Target price: EUR 8.20

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Konstantin Völk

MAX achieved attractive sales price for MA micro; chg. est.

Topic: MAX Automation has come to an agreement on the divestment of its

subsidiary MA micro with an attractive purchase price, sale of MA micro

anticipated in the second half of FY24e.

MAX Automation announced the sale of MA micro (intention was announced in

September 2023), which was already part of discontinued operations at the

end of FY23 to the Japanese conglomerate, Hitachi Ltd. The purchase price

of EUR 71.5 - 76.5m is still subject to the FY24e performance of MA micro.

After the acquisition is completed, MA micro will join JR Automation

Technologies, a Hitachi group company, and market leader in providing

advanced automation solutions and digital technologies in the robotics

systems integration business. The transaction is subject to various

customary conditions, in particular the granting of merger control

approvals and is expected to be closed in the second half of FY24e. MAX

intends to use the proceeds from the sale primarily to reduce financial

liabilities by partially repaying the syndicated loan (end of FY23: EUR

120.8m).

The sale has no influence on our financial estimates of FY24e as MA micro

was already part of discontinued operations. However, as the proceeds will

be used to partially repay the syndicated loan (eNuW: 10% interest rate),

annual interest expenses should decline by EUR 7.4m, potentially boosting EPS

by 40% (eNuW), not reflected in our estimates until the transaction closed.

Taking into account the weak operating performance of MA micro during the

last year (-28% revenue yoy, -17% EBITDA yoy) and a likely further

deterioration in FY24 due to the subdued order momentum (eNuW), the

purchase price looks attractive in our view (eNuW FY24e: Sales EUR 40m, EUR

6.6m EBITDA). The implied sales multiple of 11x EV/EBITDA is 30% above the

group's current valuation of 8.5x, which underpins the undervaluation of

the stock. Mind you, the crown jewel bdtronic and Vecoplan have bright

business prospects and should be worth considerably more than 8.0x

EV/EBITDA.

We reiterate BUY with an unchanged EUR 8.20 PT based on DCF.

You can download the research here:

http://www.more-ir.de/d/29553.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

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