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Original-Research: MAX Automation SE - from NuWays AG

11.11.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to MAX Automation SE

Company Name: MAX Automation SE
ISIN: DE000A2DA588

Reason for the research: Update
Recommendation: Buy
from: 11.11.2024
Target price: EUR 7.00
Target price on sight of: 12 months
Last rating change:
Analyst: Konstantin Völk

Muted Q3 numbers due to investment reluctance; chg. est.

Topic: MAX released its Q3 numbers last Friday with sales below but EBITDA
above our estimates.

Q3 sales came in at EUR 85m (eNuW: EUR 90m), a 15% decrease yoy due to a soft
order backlog and investment reluctance across all portfolio companies
except ELWEMA. EBITDA increased 17% to EUR 9.3m (eNuW: EUR 7.1m) due to a EUR 4.5m
profit from a litigation in connection with the sale of NSM Packtec in 2018.
However, adjusted by the effect from NSM Packtec, EBITDA would have been 39%
lower yoy with a 2.3ppts margin decrease, impacted by economies of scale,
wage inflation and product mix effects.

Order intake decreased 13% yoy to EUR 67m, leading to a low order backlog of EUR
165m (vs. EUR 206m in Q3'23). Major contributor to the reduction in order
backlog was bdtronic with a sharp decline to EUR 30m in Q3'24 (vs. EUR 76m in
Q3'23).

Bdtronic's sales decreased 15% yoy to EUR 22m in Q3 and EBITDA came in at EUR
-0.1m (EUR 3.8m in Q3'23) due to a low order intake in H1'24 affected by the
EV sales crisis. While bdtronic had to expand its capacities to handle the
rapid demand increase during FY23, they are now suffering from a higher cost
base and external personnel, which could only slowly be reduced to c. 30 end
of Q3'24 from c. 120 at the peak in FY23. Further, the company still has
impregnation orders from FY23 in the backlog with lower profitability that
will also have a negative impact in Q4'24e. Having said that, bdtronic is
still a leading expert in its field and once the cyclical demand recovers,
we expect profitability to normalize.

Vecoplan showed a flat sales development in Q3 (EUR 46m) but decreased its
EBITDA by 40% to EUR 3.4m due to a less favorable product mix, a higher
headcount and wage inflation. Order intake decreased by 8.9% attributable to
postponements from US customers related to the election (North America: 43%
of sales). We expect demand to increase in Q4'24e and modest growth for
FY25e.

MA micro: MAX Automation received c. EUR 70m cash inflow for the sale of MA
micro of which c. EUR 60m was used to reduce debt, lifting the equity ratio to
a healthy 51% (vs. 30% in Q3'23). This should lead to an interest expense
reduction of EUR 4-5m in FY25e (eNuW). Considering the recent deterioration of
MA micro's operating business, we don't expect significant earn-out
payments.

Reiterate BUY with an unchanged PT of EUR 7.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31253.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
++++++++++
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.
++++++++++

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