Original-Research: Scandinavian Astor Group AB (von NuWays AG): BUY

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Original-Research: Scandinavian Astor Group AB - from NuWays AG

20.05.2025 / 09:00 CET/CEST

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

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The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Scandinavian Astor Group AB

Company Name: Scandinavian Astor Group AB

ISIN: SE0019175274

Reason for the research: Update

Recommendation: BUY

from: 20.05.2025

Target price: SEK 40.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Two high margin acquisitions and further upside visible

Earnings call highlights further upside to our estimates. CFO Billström

commented that Q1 "could have been higher, but was a fairly good quarter",

emphasizing the seasonality of softer Q1s and Q3s, but stronger Q2s and Q4s.

Mind you, the Q1 EBITDA margin came in at 11%, despite being a "soft

quarter". Against this backdrop, our estimate of a 10% FY'25e EBITDA margin

seems conservative at the moment.

High margin acquisition of "Carbonia Composites". Through its subsidiary

Marstrom, Astor acquired 100% of tier 1 supplier of advanced carbon fiber

and fiberglass components "Carbonia Composites" for SEK 55m ( an option to

acquire Carbonia's real estate for SEK 57m), which implies a superb

acquisition multiple of only 3.9x EV/EBITDA (8x EV/EBITDA incl. RE). The

acquisition will be financed by cash (SEK 11m), debt (SEK 27.5m) and new

shares (SEK 16.5m with a 6-12 month lock up). The acquisition fits

strategically well into Marstrom, filling an important production method gap

that comes with high volumes, but also can use Astor to enter the defence

market, as it currently supplies (civil) automotive OEMs. Moreover, it is

also highly margin accretive with a staggering 27% FY'24 EBITDA margin (vs.

11.5% at Marstrom or 15% at the Astor Industry segment)

At equity investment in "Nordic Shield Group" (NSG) and indirectly in

"Cesium". In a more complex deal, Astor acquired 30% of NSG, a Swedish civil

defence group offering shielded structures like shelters, data centers, and

containers, primarily for civil use. NSG is also in advanced talks to

acquire 100% of "Cesium", a producer of patented MSVs (mobile security

vaults for rapid military deployment, bullet- and explosionproof). Cesium

reported SEK 125m in FY'24 sales with a 26.4% EBITDA margin and has an order

backlog of c. SEK 100m. Astor will support NSG's acquisition by subscribing

to a 30% capital increase (SEK 54.5m in cash), with the option to raise its

stake to 39% (for another SEK 50m) if no other NSG shareholders participate.

Based on this, the standalone acquisition multiple of Cesium is 8.1x

EV/EBITDA, excluding NSG, whose financials are undisclosed. Thus, the

blended multiple (NSG Cesium) should be well below 8x EV/EVITDA. NSG will

be part of the new segment Astor Protect, next to Airsafe (prev. Astor

Tech). Mind you, NSG will not be consolidated, but recorded at equity.

Against this backdrop, we reiterate our BUY recommendation with an unchanged

PT of SEK 40.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32674.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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2141032 20.05.2025 CET/CEST

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