^Original-Research: MAX Automation SE - from NuWays AGClassification of NuWays AG to MAX Automation SECompany Name: MAX Automation SEISIN: DE000A2DA588Reason for the research: UpdateRecommendation: BUYfrom: 13.03.2024Target price: 8.20Target price on sight of: 12 MonatenLast rating change: Analyst: Konstantin VölkExcellent growth and profitability, soft order intake; chg. Topic: MAX released strong FY23 results, with sales and EBITDA in line withexpectations and the company's guidance. The sales process of thesubsidiary MA micro, which is now recognized as discontinued operations, isstill ongoing. FY23 sales (incl. MA micro) rose by 8.3% to EUR 443m (eNuW: EUR 444m), in linewith the guidance range of EUR 410-470m due to a strong contribution frombdtronic (+59% yoy), offsetting the weaker Vecoplan, NSM + Jücker and MAmicro. Q4 sales grew slightly by 3.2% yoy to EUR 117m (eNuW: EUR 117m). FY23EBITDA (incl. MA micro) came in at EUR 43.2m (eNuW: EUR 43.9m) a 28% increaseyoy, hitting the upper end of the guidance range of EUR 38-44m. This impliesa 9.8% margin, up 1.5pp yoy due to normalized material prices and strongperformance of bdtronic. Q4 EBITDA increased 155% yoy to EUR 6.2m (eNuW: EUR6.9m) with a margin of 5.3% (+ 3.2pp yoy) due to a weak Q4 in FY22. Group order intake from continued operations decreased by 16% to EUR 341m,leading to an order backlog of EUR 206m (-21% yoy), impacted from investmentreluctance due to the ongoing economic uncertainty and higher interestcosts. Mind you, FY22 benefited from COVID-19 catch-up effects and FY23order intake and backlog are still on a historical high level. Outlook for FY24e for continuing operations: MAX guides for sales of EUR390-450m, in line with eNuW (EUR 425m), carried by a EUR 206m group backlog anda healthy order pipeline. FY24e EBITDA should come in between EUR 31-38m(eNuW: EUR 32.7m). Despite the lower order backlog, the guidance seems to bein reach due to the postponement of some larger orders from Q4 FY23 intoFY24e as well as improving supply chains and material prices. bdtronic showed a dynamic top- and bottom-line development (see page two),as a result of the fulfillment of the high order backlog and continuedstrong demand for dispensing and impregnation. Sales increased 59% yoy to EUR104m (eNuW: EUR 94.7m) and EBITDA rose by 58% with a flat development inmargins at 14%, due to large investments into growth (e.g. personell, PPE).Order intake rose by 11% yoy to a new record high of EUR 104m, flagging thetechnological leadership and ongoing structural trends such aselectrification of the automotive industry. Order intake in Q4 came inrather weak at EUR 11m compared to EUR 29m in Q4 FY22, due to the postponementof a major order to FY24e. We expect bdtronic to deliver another year of double-digit growth in FY24e(eNuW: 12%). Vecoplan delivered low-single-digit growth in sales and EBITDA, whilemargins remained roughly unchanged at 11.5% (FY22: 11.3%). Order intakefell by 15.6% yoy to EUR 145m, due to investment reluctance in Europe and USand the postponement of orders. However, the highly profitable servicebusiness, which accounts for c. 1/3 of sales, recorded significant growthduring FY23. In addition to the improving operating performance, a successful divestmentof the subsidiary MA micro (company news 08.09.2023) should be a notableshare price catalyst. This would reveal, that the value of the "parts"clearly exceeds the current Enterprise Value of the MAX Automation group,in our view. We reiterate our BUY rating with an unchanged EUR 8.20 PT based on DCF.You can download the research here:http://www.more-ir.de/d/29133.pdfFor additional information visit our websitewww.nuways-ag.com/research.Contact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.NuWays 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.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.°