Original-Research: Nabaltec AG - from NuWays AG 07.05.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: Nabaltec AG - from NuWays AG

07.05.2025 / 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 Nabaltec AG

     Company Name:                Nabaltec AG
     ISIN:                        DE000A0KPPR7

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        07.05.2025
     Target price:                EUR 24.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

FY24 marked by strong op. CF; soft start into FY25

2024 figures inline with prelims. To recap: FY24 sales grew by 1.7% yoy to EUR
203.6m, largely driven by higher sales volumes of fine hydroxides and
viscosity optimized hydroxides (sales +100% yoy to EUR 10.2m), which
compensated for weaker demand for boehmite (-25% yoy to only EUR 12.5m due to
lacklustre EV demand across Europe and the absence of notable cell and
separator production capacities) and Specialty Alumina (41% refractory
share, 11% on group level) as well as generally lower sales prices. While
Functional Fillers grew its top-line by 4%, Specialty Alumina recorded a
3.8% decline.

At 10.8%, the EBIT margin increased by 1.7pp yoy; EUR 22.3m absolute EBIT.
Thanks to the good operational performance coupled with working capital
improvements (wc/sales -3.4pp to 17.8%), the operating cash flow stood at EUR
35.2m, sufficient to cover the company's growth investments (EUR 32m capex).

Soft start into the year. Nabaltec also released Q1 prelims with sales
growing 1.2% yoy to EUR 54.7m and an EBIT of EUR 4m, a 7.5% margin (-1.8pp yoy)
as higher input costs (gas, electricity and labour) weighed on
profitability. Yet, improvements are seen to gradually materialize
throughout the year thanks to the announced selling price increases that
will be implemented from Q2 onwards (eNuW: ~ 3.5%).

Cautious FY25 guidance. Due to the expected gradual improvements outlined
above, management's expectations of 3-5%
FY25 sales growth (eNuW: 5.7%) and an EBIT margin of 7-9% (eNuW: 9.7%) look
conservative.

Potential tailwinds from Germany's EUR 1tn spending bazooka. On March 4th,
election winner Friedrich Merz from the Christian Democrats (CDU) as well as
the Bavarian Christian Social Union (CSU) and the Social Democrats (SPD)
discussed a EUR 500bn special fund for infrastructure investments over the
coming 10 years, next to a sizeable fund for defense. With 25% of group
sales being directly tied to Germany (Europe 76%) and construction being the
most important end market, this could turn into a notable tailwind.

Valuation remains low. Nabaltec is trading at a 12% discount to its book
value, while the company offers a strong balance sheet and good free cash
flow yield, even in a macro-economically challenging year. We continue to
regard to stock to be mispriced and confirm our BUY rating with a EUR 24 PT
(old: EUR 25) based on FCFY 2025.

You can download the research here: http://www.more-ir.de/d/32486.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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2131580 07.05.2025 CET/CEST