^Original-Research: Einhell Germany AG - von NuWays AGEinstufung von NuWays AG zu Einhell Germany AGUnternehmen: Einhell Germany AGISIN: DE0005654933Anlass der Studie: Q3 ReviewEmpfehlung: BUYseit: 23.11.2023Kursziel: EUR 225,00Kursziel auf Sicht von: 12 MonatenLetzte Ratingänderung: Analyst: Christian SalisFinal Q3 slightly better than expected // Bottom-line stays strong Einhell released better-than-expected final Q3 results, reflecting that thecompany executes tight cost control amid a challenging market environment.Q3 sales decreased by 5% yoy to EUR 230m (prelim: EUR 225m). While EasternEurope showed strong growth of 30% yoy, DACH decreased by 8% yoy as DIYpartners remained cautious to buy inventories. Positively, however, thePower X-Change trend remained fully intact, growing by 3pp yoy to 45% ofgroup sales. Einhell confirmed its adjusted FY 23 guidance of EUR1.0bn revenue. This implies an 8% sales growth yoy in Q4, which we considerambitious and therefore sit a notch lower at EUR 991m, implying 4% salesgrowth against an easier comparable base. Importantly, profitability remained at a healthy level. A significantlyimproved gross margin of 39.7% (+3.7pp yoy) on the back of favorable mix(i.e. higher share of PXC) and price increases almost fully compensated fornegative operating leverage and cost inflation. Hence, EBT margin decreasedby only 0.7pp yoy to 8.0%, still significantly exceeding pre-pandemiclevels (Q3 19: 4.5%). This also explains why Einhell confirmed its FY 23bottom-line range of 8.0-8.5% ("low end", eNuW: 8.0%) despitethe weaker top-line. In Q4, Einhell is seen to show a gradual recovery on both top- andbottom-line. During our recent roadshow, CFO Teichert indicated thatdiscussions with DIY partners indicate a recovery in DACH while Einhellcontinues to gain market share. In FY 24e, Einhell should return to growthon the back of easier comps, sustained market share gains, positive M&A andFX effects. Hence, we model 6% sales growth yoy to EUR 1,050m in FY 24e andEBT margin is seen to recover slightly by 0.2pp yoy to 8.2% thanks to lowerinput costs, positive mix effects and FX, which should turn into a tailwindlatest in H2 2024e. Strategically, the US market should provide an attractive growthopportunity. Following its successful international expansion in e.g.Australia and Canada, a potential market entry could happen already in FY24 via Einhell's proven success model: Gaining market access through theacquisition of a small- to mid-sized local DIY brand and graduallyreplacing the assortment with best-in-class price/value PXC products. TheUS market looks attractive given that it is by far the largest DIY marketglobally and Einhell's major rival Ryobi seems to neglect the onlinechannel as well as Tier-2/3 DIY stores, which Einhell aims to tackle.Against this backdrop, valuation looks undemanding, trading at 8.9x PER 24eand an 11.4% FCF yield. BUY, PT EUR 225.00, based on DCF.Die vollständige Analyse können Sie hier downloaden:http://www.more-ir.de/d/28379.pdfDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloadenwww.nuways-ag.com/research.Kontakt für RückfragenNuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: research@nuways-ag.comLinkedIn: https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++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.++++++++++-------------------übermittelt durch die EQS Group AG.-------------------Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatungoder Aufforderung zum Abschluss bestimmter Börsengeschäfte.°