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

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

17.06.2025 / 09:00 CET/CEST

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

Group.

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: 17.06.2025

Target price: 54.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Another deal unlocks opportunities in the Baltics, PT up.

Yesterday, Astor announced the acquisition of AMMUNITY and with that the

market entry into the Baltics.

Astor has yet again pulled off a strong M&A deal by acquiring AMMUNITY for

only 4.4x EV/EBITDA. The company is based in Riga and is Latvia's only

manufacturer of military small arms ammunition and a leading provider of

fine caliber ammunition in the Baltics (all NATO standard) for Armed

Forces/procurement

agencies in the Baltics. With FY'24 sales of SEK 103m (% yoy) and a 21%

EBITDA margin, the company shows a strong growth and profitability profile,

underpinned by a standing contract with the Latvian government worth SEK

400m coupled with an option for further SEK 400m. Moreover, it has

additional

request for ammunition worth SEK 360m from a third customer, thus leading to

a total soft order backlog of SEK 1.16bn (i.e. >10x FY'24 sales), creating a

strong visibility on demand, in our view.

Perfect strategic fit and door opener into the Baltics. Next to strong

fundamentals, this acquisition looks set to perfectly fit into Astor's

product portfolio. By now serving ammunition (next to drone and radar

jammers, composite parts and various other high-tech equipment), it

diversifies the revenue mix and gives it a slightly more recurring touch.

More importantly, Astor now has a foot in the door at the Baltic Armed

Forces/procurement agencies and thus enters the Baltic defence market by

potentially up-selling all of Astor's product portfolio. Also, the other

way, Astor can now also offer the Scandinavian Armed Forces/procurement

agencies with supply of ammunition from the close neighbor Latvia, which

currently mostly rely on the Norwegian company 'Nammo' for their ammunition

supply.

Astor to fund growth investments. The strong demand for ammunition directly

creates the need to expand, whose expenses are likely to be financed by the

parent company Astor, given that further debt intak at AMMUNITY (200% net

debt/equity, based on acquisition value of equity) should not be healthy. In

our view, this should also explain the comparably low acquisition multiple,

as it does not contain the upcoming growth investments.

Against this backdrop, we confirm our BUY recommendation. We now incorporate

the recent M&A (100% of Carbonia; 39% of NSG/Cesium, recorded at equity and

now 100% of AMMUNITY) in our estimates, as we assume the closings to go

through as announced. Therefore, we raise our estimates accordingly and

arrive at a new PT of SEK 54 (old: SEK 40), based on DCF.

You can download the research here: http://www.more-ir.de/d/32862.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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2156164 17.06.2025 CET/CEST

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