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Original-Research: Deutsche Beteiligungs AG - from NuWays AG

29.09.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Deutsche Beteiligungs AG

Company Name: Deutsche Beteiligungs AG
ISIN: DE000A1TNUT7

Reason for the research: Update
Recommendation: BUY
from: 29.09.2025
Target price: EUR 39.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Successful exit despite challenging markets

DBAG announced the disposal of its investment in duagon, a provider of
embedded hardware and software solutions for safety-critical rail
applications. The stake held by DBAG Fund VII and DBAG (co-investment) was
sold to Knorr-Bremse AG, the global market leader in braking systems and
rail technology. Completion is subject to regulatory approval. The
Enterprise Value of duagon excluding potential performance based earn-outs
stands at EUR 500m, or roughly 18x EV/op. EBIT. While concrete financials were
not published, we estimate the MOIC to be around 3x.

duagon was acquired by DBAG Fund VII in 2017 and has since developed into a
leading platform in embedded rail electronics, benefiting from strong
secular trends including digitalisation, automation, and predictive
maintenance in the rail sector. DBAG supported growth through a
buy-and-build strategy, integrating MEN Mikro Elektronik (2018), OEM
Technology Solutions (2019), and TechOnRails (2020), broadening its product
scope and international reach. Sales grew from roughly EUR 20m in 2017 to an
expected EUR 175m in FY25e.

The duagon disposal confirms DBAG's strong positioning in the European
mid-market and its ability to realise value from IndustryTech assets despite
a slow exit environment. We view the transaction as strategically and
operationally positive, reinforcing DBAG's reputation as a disciplined value
creator and supporting visibility on NAV development. In fact, we expect the
mid-points of the NAV and NAV per share guidance (EUR 625-665m and EUR 35-38) to
be well in reach. Based on our calculations, DBAG should be able to record a
EUR 25-35m gain from realizing its co-investment. Hitting the upper ends of
the guidance should require one additional successful exit until the end of
the year, in our view.

Shares remain attractively valued, supported by shareholder friendly capital
allocation (dividends and share buybacks on top of ongoing investments
alongside its funds). We confirm our BUY rating with an unchanged EUR 39 PT
based on SOTP (DCF for Fund Services + discount to our NAV per share
estimate at year-end).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=c7427c8530056f270f0281f1c82071da
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
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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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2204780 29.09.2025 CET/CEST

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