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Original-Research: THE NAGA GROUP AG - von NuWays AG

Einstufung von NuWays AG zu THE NAGA GROUP AG

Unternehmen: THE NAGA GROUP AG
ISIN: DE000A161NR7

Anlass der Studie: Updaate
Empfehlung: HOLD
seit: 17.11.2023
Kursziel: EUR 1,30
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Frederik Jarchow

FY22 out // Short-term remains clouded; Restart with HOLD

Recently, NAGA finally reported its audited FY22 figures, which reflect a
particularly challenging year for the company. In detail:

Sales stand at EUR 57.6m (+9% yoy), above our estimates of EUR 50.1m, as we
have not considered NGC trading revenues of EUR 6.8m. While trading activity
should have declined from 520 to 434 trades per active customer and the
overall number of trades to 8.1m (-19% yoy), number of active customers
should have remained largely stable (-3% yoy; 18.7k at YE). An increased
avg. revenue per trade of EUR 7.10 (+34% yoy) compensated for the weaker
customer activity resulting in a stable top line.

EBITDA came in strongly negative at EUR -13.9m (eNuW: EUR -10.6m), heavily
burdened by marketing expenses of EUR 28.3m that were necessary to keep top
line stable throughout a weak year in the overall brokerage space. Further,
personnel expenses, R&D costs and other operating expenses (i.e.
depreciations of NGC and receivables of EUR 4.9m), drove EBITDA into negative
terrain. EUR 23m of D&A (EUR 15.3m from devalued crypto assets on the balance
sheet) burdened the group's EBIT further, which came in at EUR -36.9m.

In a nutshell, 2022 was terrible year for NAGA and all other players in the
brokerage space as customer activity fell off the cliff and cryptos accross
the board faced sharp corrections.

Looking forward, 2023 can be seen as a transition year for the company and
NAGA should return to annual top line and bottom-line growth from FY24e
onwards due to the strategic shift towards global growth across so far
under-penetrated regions (sales split as of 9MŽ23: Europe: 90%; Other:
10%), new acquisitions, expansion of the license base paired with ongoing
cost discipline, leaner operations and increasing efficiency (i.e.
marketing).

While we see the potential of such a business model, the market environment
is currently not favourable for CFD brokers: Trading activity stabilize on
low levels and regulatory requirements are tightening, especially in
Europe.

We remain cautious, yet restarting coverage with HOLD and a new PT of EUR
1.30 based on DCF. Once the strategic initiatives result in profitable
topline growth, we can return to a more favourable vote.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28317.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.

Kontakt für Rückfragen
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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-------------------übermittelt durch die EQS Group AG.-------------------


Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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Quelle: dpa-AFX