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Original-Research: INDUS Holding AG - from NuWays AG

15.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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 INDUS Holding AG

Company Name: INDUS Holding AG
ISIN: DE0006200108

Reason for the research: Update
Recommendation: BUY
from: 15.05.2025
Target price: EUR 34.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Soft start into the year // order intake better than expected

Topic: INDUS released mixed Q1 figures with sales and adj. EBITA below our
expectations. However, a soft start into the year was already largely
anticipated and a solid order intake gives confidence for H2'25e.

Sales came in at EUR 402m (eNuW: EUR 409m), 1.9% below last year due to a
challenging economic environment. While sales in Infrastructure grew by 3.4%
to EUR 136m partly due to the acquisition of GRIDCOM, sales in Engineering
declined by 4.8% to EUR 123m, primarily as a result of lower sales in sorting
systems, clean room systems and measurement technology for vehicles.
Materials Solutions sales decreased by 4.1% to EUR 143m mainly due to the
discontinuation of IMECO.

Order intake increased 2.6% yoy to EUR 455m with a strong demand in
Engineering (+19.5% yoy) thanks to major long-term plant engineering orders
(automotive and logistics) compensating for a softer Infrastructure (-7.8%
yoy) and Materials Solution segment (-2.9% yoy). Order backlog increased by
4.4% yoy to EUR 665m but remains at a relatively low level.

Adj. EBITA came in at EUR 24.9m (eNuW: EUR 28.8m), a 21% decrease yoy with a
6.2% margin (-1.5pp yoy) mainly due to a weak Engineering segment.
Nonetheless, like last year, a gradual improvement throughout the year with
a strong Q4 is expected for Engineering. Overall, higher personnel costs
despite a lower number of employees as well as a slightly higher material
cost ratio (44.4% of sales vs. 44.1% in Q1'24) weighed on profitability in
the first quarter.

FCF decreased to EUR -23.6m from EUR 6.1m last year, due to a EUR 14.3m higher
seasonal increase in working capital but also higher investments.

FY'25e outlook: Last week, INDUS reduced its FY'25e guidance, especially due
to export controls on tungsten compounds from China, which puts pressure on
the supply chain of INDUS' largest holding BETEK (16% of FY'24 sales).
Management now expects sales in the range of EUR 1.70-1.85bn (eNuW: EUR 1.74bn)
and adj. EBITA between EUR 130-165m (eNuW: EUR 143m), which looks plausible to
us, as we already conservatively account for a tungsten carbide shortage in
H2'25e.

Reiterate BUY with an unchanged PT of EUR 34 per share, based on FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32610.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

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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2138010 15.05.2025 CET/CEST

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