^Original-Research: MAX Automation SE - from NuWays AGClassification of NuWays AG to MAX Automation SECompany Name: MAX Automation SEISIN: DE000A2DA588Reason for the research: UpdateRecommendation: Kaufenfrom: 19.04.2024Target price: EUR 8.20Target price on sight of: 12 MonatenLast rating change: Analyst: Konstantin VölkPositive long-term prospects for Vecoplan and bdtronic Topic: In recent years, two of the current six portfolio companies(continuing operations only) became increasingly important. These twocompanies, bdtronic and Vecoplan, accounted for 71% of FY23 sales.Enough reason to have a closer look at their prospects.Vecoplan: As a global specialist for shredding, conveying, and processingof raw materials in the recycling industry, Vecoplan can benefit from thelatest EU regulation. Until today, a lot of waste in the EU is exported tothird countries like Turkey, Indonesia, and Malaysia. In February 2024, theEuropean Parliament adopted tougher rules for waste shipments. Plasticwaste exports to non-OECD countries will be prohibited, while those to OECDcountries will be subject to stricter conditions. This forces EU membercountries to adopt better recycling strategies benefiting demand forVecoplan's products. Vecoplan showed a dynamic revenue growth of 10% p.a.over the last five years. We expect sales to grow by 6.0% p.a. until 2030ewith low double-digit EBITDA margins (eNuW), outpacing the growth of theglobal waste management market of 5% according to Polaris Market Research. Bdtronic: In 2023, the EU banned the sale of new CO2-emitting cars by 2035,including petrol and diesel-driven cars, which increases the demand forelectric vehicles. In addition, major automotive manufacturers set internalelectrification targets. For instance, Volkswagen aims for a fully electricproduction by 2033 within Europe. With 2/3 of bdtronic's sales coming fromthe EU, this could have a material impact on its impregnation segment.Bdtronic's trickle impregnation machines used for the impregnation ofelectric motors are sold to Tier1-suppliers and OEMs and are suited forlarge scale production. The strong demand for bdtronic's products hasalready shown up in the numbers with a five-year revenue CAGR of 14% and asimilar development in order intake. We expect bdtronic to grow by 9.4%p.a. until 2030e with EBITDA margins north of 15% (eNuW). Mind you, in addition to the positive operating performance, a successfuldivestment of the subsidiary MA micro, which is part of discontinuedoperations (company news 08.09.2023) should be a notable share pricecatalyst, as it is seen to underpin that the value of the "parts" clearlyexceeds the current Enterprise Value of the group (eNuW). A strategic buyercould be willing to pay at least 10x EBITDA for this highly profitable andreturn-rich speciality business, implying a purchase price of more than EUR93m (eNuW). Reiterate BUY with an unchanged EUR 8.20 PT based on DCF.You can download the research here:http://www.more-ir.de/d/29465.pdfFor additional information visit our websitewww.nuways-ag.com/research.Contact for questionsNuWays 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.°