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Original-Research: EV Digital Invest AG - from NuWays AG

Classification of NuWays AG to EV Digital Invest AG

Company Name: EV Digital Invest AG
ISIN: DE000A3DD6W5

Reason for the research: Update
Recommendation: Kaufen
from: 26.04.2024
Target price: EUR 3.60
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Better than feared FY23; New product launch; chg

Topic: EVDI reported better than feared final FY23 figures and published a
guidance for FY24. Further, the company announced the launch of a new
attractive call money product for both, existing and new clients. In
detail:

Sales of EUR 4.1m (-20% yoy) stemming from 13 financed projects (vs eNuW: 14)
with an aggregated financed volume of EUR 39m (vs eNuW: EUR 39m) is below
previous years figure (FY22: EUR 5.2m) due to the overall weak industry, but
better than expected (eNuW: EUR 3.5m). Positively, the number of projects and
average volume per project improved significantly in H2 (vs H1) resulting
in EUR 2.6m sales (vs EUR 1.5m in H1), clearly demonstrating the ability to
deliver in challenging times.

EBITDA came in at negative EUR 3.9m (vs EUR -3.4m in FY22), slightly better
than expected (eNuW: EUR -4.2m), thanks to the stronger than anticipated
topline and lower personnel expenses, compensating for higher other
operating expenses that were burdened by one-offs stemming from
insolvencies and delays.

Attractive new product. Apart from FY23 figures, EVDI announced to have
launched a new call money account for new and existing customers with a
very attractive interest rate of 3.2% for up to EUR 5m per customer. This
offering is by far better than the comparable offering of most online banks
and brokers, especially for wealthy customers. Even better, we expect EVDI
to earn 0.2-0.25% on the volume (eNuW). With the new product, the company
is adding a low-risk alternative to its overall offering consisting of
property and ETF investments as well as wealth management. Due to the
attractiveness of the call-money offering, we expect significant customer
and asset inflows within the next quarters, allowing for a promising
cross-selling and conversion potential.

For FY24, management expects a revitalizing real-estate market mainly
driven by the anticipated reduction of interest rates. Due to the
uncertainty around that topic, management provides a rather conservative
guidance of EUR 4.9-5.8m in op. income (vs eNuW old: EUR 6.3m) and up to EUR
-1.9m EBITDA, (eNuW old: EUR -2m in EBITDA).

BUY (old: HOLD) on valuation with a reduced PT of EUR 3.60 (old: EUR 4.80),
based on DCF.

You can download the research here:
http://www.more-ir.de/d/29533.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
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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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The result of this research does not constitute investment advice
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