^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: 29.04.2024Target price: EUR 8.20Target price on sight of: 12 MonatenLast rating change: Analyst: Konstantin VölkMAX achieved attractive sales price for MA micro; chg. est. Topic: MAX Automation has come to an agreement on the divestment of itssubsidiary MA micro with an attractive purchase price, sale of MA microanticipated in the second half of FY24e. MAX Automation announced the sale of MA micro (intention was announced inSeptember 2023), which was already part of discontinued operations at theend of FY23 to the Japanese conglomerate, Hitachi Ltd. The purchase priceof EUR 71.5 - 76.5m is still subject to the FY24e performance of MA micro. After the acquisition is completed, MA micro will join JR AutomationTechnologies, a Hitachi group company, and market leader in providingadvanced automation solutions and digital technologies in the roboticssystems integration business. The transaction is subject to variouscustomary conditions, in particular the granting of merger controlapprovals and is expected to be closed in the second half of FY24e. MAXintends to use the proceeds from the sale primarily to reduce financialliabilities by partially repaying the syndicated loan (end of FY23: EUR120.8m). The sale has no influence on our financial estimates of FY24e as MA microwas already part of discontinued operations. However, as the proceeds willbe used to partially repay the syndicated loan (eNuW: 10% interest rate),annual interest expenses should decline by EUR 7.4m, potentially boosting EPSby 40% (eNuW), not reflected in our estimates until the transaction closed. Taking into account the weak operating performance of MA micro during thelast year (-28% revenue yoy, -17% EBITDA yoy) and a likely furtherdeterioration in FY24 due to the subdued order momentum (eNuW), thepurchase price looks attractive in our view (eNuW FY24e: Sales EUR 40m, EUR6.6m EBITDA). The implied sales multiple of 11x EV/EBITDA is 30% above thegroup's current valuation of 8.5x, which underpins the undervaluation ofthe stock. Mind you, the crown jewel bdtronic and Vecoplan have brightbusiness prospects and should be worth considerably more than 8.0xEV/EBITDA. We reiterate BUY with an unchanged EUR 8.20 PT based on DCF.You can download the research here:http://www.more-ir.de/d/29553.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.°