Original-Research: THE NAGA GROUP AG (von NuWays AG): BUY

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Original-Research: THE NAGA GROUP AG - from NuWays AG

11.06.2025 / 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 THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG

ISIN: DE000A161NR7

Reason for the research: Update

Recommendation: BUY

from: 11.06.2025

Target price: EUR 1.20

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Final FY24 above prelims // Solid Q1 figures; chg

Last week, NAGA reported final FY24 figures that came in slightly above

prelims on top and bottom line.Further, the company reported preliminary Q1

figures.

* FY24 Sales came in at EUR 63.2m (-18% yoy), above preliminary sales of EUR

62.3m. The decline compared to the previous year is mainly coming from

the closure of loss-making non-core subsegments. FY24 EBITDA stood at EUR

9.0m (6% yoy vs EUR 8.5m preliminary EBITDA) resulting in an EBITDA-margin

of 14.3% (vs 11.5% in FY23), thanks to higher synergy effects from the

merger and increasing operational and marketing efficiency.

After the transition year 2024 that was mainly characterized by integration,

automation and efficiency processes, NAGA restarted its growth engine in

2025. First measures such as the cooperation with BVB and Mike Tyson were

already taken in Q4´24 and Q1´25. First effects on the topline were already

visible in Q1 figures:

* Q1´25 sales of EUR 16.4m (7% yoy) carried by increased avg daily trades

per customer of 2.31 (vs 2.09 in Q1´24) and an increased CLV of EUR 3,290

(vs EUR 2,880 in Q1´24). EBITDA came in at EUR 1.0m, burdened by increased

marketing spending that should start to materialize within the next

quarters, visible in growing topline and scale effects.

In order to fuel topline growth, NAGA is expected to further ramp-up

marketing expenses (according to the guidance by >50% yoy in FY25e and

another 18% yoy to EUR 39m in FY26e). As a result, management is expecting

topline growth of 19% to EUR 74m in FY25 (eNuW: EUR 77.3m) and another 32% to EUR

97.8m in FY26 (vs eNuW: EUR 92.7m). Thanks to expected further synergies,

efficiency and scale effects, EBITDA should increase to EUR 12.5m in FY25 (vs

eNuW: EUR 12.4m) and EUR 27.6m in FY26 (vs eNuW: EUR 19.1m) implying margins of

17% and 28%.

With Q1 figures the company delivered a solid start into the year.

Nevertheless, it needs further sequential improvement to achieve the

guidance. We are convinced that the management took the right measures and

see the company on track to deliver.

BUY with an unchanged PT of EUR 1.20 based on DCF.

You can download the research here: http://www.more-ir.de/d/32830.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

ﯯ뻻

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.

ﯯ뻻

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2153434 11.06.2025 CET/CEST

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