Original-Research: Netfonds AG (von NuWays AG): Buy

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Original-Research: Netfonds AG - from NuWays AG

24.06.2025 / 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 Netfonds AG

Company Name: Netfonds AG

ISIN: DE000A1MME74

Reason for the research: Update

Recommendation: Buy

from: 24.06.2025

Target price: EUR 78.00

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Strong start into FY25 // Guidance upgrade; chg

Netfonds reported promising Q1 figures indicating that the com<pany is well

on track to achieve its FY25 guidance. In detail:

Gross sales came in at EUR 64.5m (% yoy), above our estimate of EUR 62,9m.

Key driver was again the AuA growth that stood at EUR 28.5bn after Q1 (vs EUR

28.3bn in FY24) in line with our estimates (eNuW: EUR 28.5bn). Thanks to scale

effects, material expenses should have declined relatively to sales to 81.4%

(vs 83.1% in Q1´24) resulting in net sales of EUR 12.0m (26% yoy vs eNuW: EUR

11.6m).

EBITDA stood at EUR 2.8m (211% yoy), above our estimates of EUR 2.4m, mainly

driven by the sound topline development. OPEX should have come in as

expected (eNuW: EUR 6.0m personnel expenses and EUR 3.2m other OPEX. EBT came in

at EUR 1.4m (vs EUR -0.4 in Q1´24y vs eNuW: EUR 1.1m) as a result of stable D&A

(eNuW: EUR 1.0m) and a financial result that is burdened by the interest for

the bond (eNuW: EUR -0.4m).

Overall, Q1 figures mark a strong start into the year. On the back of EUR

28.5bn AuA in Q1´24, topline should continue to grow in Q2 as AuA growth

usually materializes with a delay of one quarter. Even better, Netfonds

announced that AuA reached a new record level of EUR 29.3bn, which gives us

already visibility into Q3. As we expect the more profitable AuM to grow

more dynamically, this alone should expand EBITDA margins.

As the anticipated growth should be strongly supported by Netfonds

proprietary 360° finfire platform, Netfonds should enjoy the typical scale

effects of a growing platform business. Moreover, finfire is seen to fuel

the consolidation of the insurance broker market that is, in contrary to the

investment adviser market, still highly fragmented. Consequently, we

continue to consider finfire to remain the Groups key mid- to long-term

growth and scalability driver.

For FY25 we still expect EUR 263m gross sales, EUR 54.7m net sales and an EBITDA

of EUR 16.2m. While the renewed topline guidance of EUR 260-270m gross sales and

EUR 52.5-54m net sales is broadly in line we consider the EBITDA guidance of EUR

12-13.5m that is not meeting our expectation, as rather conservative with

room for an update until eoy.

BUY with an unchanged PT of EUR 78.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32902.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2159332 24.06.2025 CET/CEST

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