Original-Research: EV Digital Invest AG (von NuWays AG)
Original-Research: EV Digital Invest AG - from NuWays AG
Classification of NuWays AG to EV Digital Invest AG
Company Name: EV Digital Invest AG
ISIN: DE000A3DD6W5
Reason for the research: Update
Recommendation: Kaufen
from: 26.04.2024
Target price: EUR 3.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow
Better than feared FY23; New product launch; chg
Topic: EVDI reported better than feared final FY23 figures and published a
guidance for FY24. Further, the company announced the launch of a new
attractive call money product for both, existing and new clients. In
detail:
Sales of € 4.1m (-20% yoy) stemming from 13 financed projects (vs eNuW: 14)
with an aggregated financed volume of € 39m (vs eNuW: € 39m) is below
previous years figure (FY22: € 5.2m) due to the overall weak industry, but
better than expected (eNuW: € 3.5m). Positively, the number of projects and
average volume per project improved significantly in H2 (vs H1) resulting
in € 2.6m sales (vs € 1.5m in H1), clearly demonstrating the ability to
deliver in challenging times.
EBITDA came in at negative € 3.9m (vs € -3.4m in FY22), slightly better
than expected (eNuW: € -4.2m), thanks to the stronger than anticipated
topline and lower personnel expenses, compensating for higher other
operating expenses that were burdened by one-offs stemming from
insolvencies and delays.
Attractive new product. Apart from FY23 figures, EVDI announced to have
launched a new call money account for new and existing customers with a
very attractive interest rate of 3.2% for up to € 5m per customer. This
offering is by far better than the comparable offering of most online banks
and brokers, especially for wealthy customers. Even better, we expect EVDI
to earn 0.2-0.25% on the volume (eNuW). With the new product, the company
is adding a low-risk alternative to its overall offering consisting of
property and ETF investments as well as wealth management. Due to the
attractiveness of the call-money offering, we expect significant customer
and asset inflows within the next quarters, allowing for a promising
cross-selling and conversion potential.
For FY24, management expects a revitalizing real-estate market mainly
driven by the anticipated reduction of interest rates. Due to the
uncertainty around that topic, management provides a rather conservative
guidance of € 4.9-5.8m in op. income (vs eNuW old: € 6.3m) and up to €
-1.9m EBITDA, (eNuW old: € -2m in EBITDA).
BUY (old: HOLD) on valuation with a reduced PT of € 3.60 (old: € 4.80),
based on DCF.
You can download the research here:
http://www.more-ir.de/d/29533.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
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.