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Original-Research: The Platform Group AG - from NuWays AG

29.08.2025 / 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 The Platform Group AG

Company Name: The Platform Group AG
ISIN: DE000A2QEFA1

Reason for the research: Update
Recommendation: Buy
from: 29.08.2025
Target price: EUR 19.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

Topic: Last week, TPG released a solid set of H1 results, clearly confirming
the growth path and showing the profitability expansions. In detail:

H1 sales are up 48% yoy to EUR 343m (Q2: +47% yoy), driven by recent M&A (20%
yoy inorganic growth), but more importantly carried by a strong organic
development, with sales being up organically by an impressive 28% yoy. This
showcases the success of TPG's unique platform business model, connecting a
growing number of partners (15,781, up 26% yoy) and thus product offering,
to a growing number of customers (6.2m, up 29% yoy) which clearly serves a
key differentiator against the classical e-commerce sector. Sales of the
largest segment Consumer Goods increased by 72% to EUR 217m (63% of sales),
followed by growth across all remaining segments between 17% and 22% yoy.

Adj. EBITDA saw an even better development in H1, jumping by 89% yoy to EUR
33m (9.7% margin, up 2.1pp yoy). This should stem from a mix of (1) margin
accretive past acquisitions (visible in a stronger gross margin, up 5.2pp
yoy) and (2) an improving fixed cost coverage following strong organic sales
growth (e.g. visible in a personnel cost ratio decline by 0.4pp yoy).

TPG raised its guidance and 2026 mid-term targets for the 2nd time (see
bottom right), following 7 acquisitions this year. Especially the move into
Optics & Hearing (and the subsequent formation of a new segment as of Q3'25)
is seen as an extremely margin accretive addition, given the 25% EBITDA
margin of the acquired companies, which is in line with peers like Fielmann.
In light of this, we regard the guidance as well in reach.

Moreover, TPG is currently in advanced negotiations to acquire three B2B
pharmaceutical companies. It's holdings like ApoNow and Doc.Green (online
platform for offline pharmacies) have not only developed well in the last
years, but also have an important reach into more than 41k pharmacies, but
also into 350 pharmaceutical producers. Further acquisitions in this field
could hence serve as vertical and horizontal integration into TPG's existing
pharma business. The to-be-acquired companies together have a low
triple-digit EUR m sales with 4-6% EBITDA margins. Additionally, TPG is
currently looking into a B2B furniture platform as well as a B2B bike
platform.

Financing for all 50.1% acquisitions should stem from FCFs (EUR 10m in H1'25),
but also by taking on further debt by tapping the existing 24/28 bond, but
without endangering over leveraging (Net Debt / LTM adj. EBITDA of 2.0x per
H1, flat yoy).

Non-operatively, TPG's AGM agreed to the change in legal structure from AG
to SE & Co. KGaA, making TPG more resilient against takeovers and ensure a
long-term framework with CEO Benner as an anchor shareholder.

All in all, TPG remains in full swing and the shares remain undervalued, in
our view, trading at only 4.9x FY'25e PE (4.3x FY'26e) for a quickly growing
e-commerce platform. We raise our estimates as we include most recent
closings in our models. Consequently, our DCF-based PT increases to EUR 19.00
(old: EUR 18.00).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=ce0fe402051e64d96ebcfb42a3ab26b2
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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2190418 29.08.2025 CET/CEST

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