Original-Research: Scandinavian Astor Group AB - from NuWays AG 14.05.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: Scandinavian Astor Group AB - from NuWays AG

14.05.2025 / 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 Scandinavian Astor Group AB

     Company Name:                Scandinavian Astor Group AB
     ISIN:                        SE0019175274

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        14.05.2025
     Target price:                SEK 40.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

Q1 confirms strong organic growth momentum for 2025, PT up

Q1 sales rose by 105% yoy to SEK 75m, whereof SEK 24m came from past M&A.
More importantly, this implies 38% yoy organic sales growth, showing the
strong underlying rise in demand for Astor's products and services. Against
this backdrop, our organic sales growth assumption of 30% yoy (old: 28% yoy)
for FY'25e could still turn out to be conservative, also because Q1 is
seasonally less strong. On a segmental basis, the Tech segment increased
sales from SEK 0.6m to SEK 24m, mainly driven by the consolidation of
Scandiflash, whereas the Industry segment grew sales by 50% yoy to SEK 54m.

Order intake grew proportionately to SEK 67m (0.9x book-to-bill), whose
rapid increase should also stem 2/3 from past M&A and 1/3 from organic OI
growth. The current order backlog thus stands at SEK 200m, of which SEK 150m
are due for delivery in FY'25e, providing excellent visibility.

Profitability showed an even stronger performance with group EBITDA
expanding by 282% yoy to SEK 8.1m (11% margin, + 5pp yoy). Key drivers,
among other things, were (1) the consolidation of Scandiflash into the Tech
Segment, raising the EBITDA margin to 14.1% (vs. negative in Q1'24), (2) a
2.2pp yoy EBITDA margin expansion at the Industry segment to 13.7%, driven
by a mix of margin accretive acquisitions and operating leverage and (3) a
better coverage and a reduction of overhead holding expenses (SEK 1.6m in Q1
vs. SEK 1.7m in Q1'24).

Consequently, CFO expanded to SEK 6.7m (83% of EBITDA cash conversion) and
FCF arrived positive for the first time at SEK 1.5m and net debt amounted to
SEK 40m (SEK 84m incl. leases). Mind you, the proceeds of the SEK 150m
capital increase resolved at the end of March have flown in April and will
thus will be reflected with Q2 results.

Astor started with strong momentum into FY'25e. With a well filled M&A war
chest and plenty of acquisition target in the short-term M&A pipeline with a
total size of SEK 500m in annual revenues, Astor looks set to continue
strong inorganic growth. Also, Sweden's increased defence spending to 3.5%
of GDP by 2030 (prev. target: 2.6% by 2030) should also bode well for
continuously high organic sales growth. Therefore, we reiterate our BUY
recommendation with an increased PT of SEK 40.00 (old: SEK 39.00), based on
DCF

You can download the research here: http://www.more-ir.de/d/32596.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
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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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2136870 14.05.2025 CET/CEST