Original-Research: Scandinavian Astor Group AB - from NuWays AG 20.05.2025 / 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

20.05.2025 / 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:                        20.05.2025
     Target price:                SEK 40.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Henry Wendisch

Two high margin acquisitions and further upside visible

Earnings call highlights further upside to our estimates. CFO Billström
commented that Q1 "could have been higher, but was a fairly good quarter",
emphasizing the seasonality of softer Q1s and Q3s, but stronger Q2s and Q4s.
Mind you, the Q1 EBITDA margin came in at 11%, despite being a "soft
quarter". Against this backdrop, our estimate of a 10% FY'25e EBITDA margin
seems conservative at the moment.

High margin acquisition of "Carbonia Composites". Through its subsidiary
Marstrom, Astor acquired 100% of tier 1 supplier of advanced carbon fiber
and fiberglass components "Carbonia Composites" for SEK 55m (+ an option to
acquire Carbonia's real estate for SEK 57m), which implies a superb
acquisition multiple of only 3.9x EV/EBITDA (8x EV/EBITDA incl. RE). The
acquisition will be financed by cash (SEK 11m), debt (SEK 27.5m) and new
shares (SEK 16.5m with a 6-12 month lock up). The acquisition fits
strategically well into Marstrom, filling an important production method gap
that comes with high volumes, but also can use Astor to enter the defence
market, as it currently supplies (civil) automotive OEMs. Moreover, it is
also highly margin accretive with a staggering 27% FY'24 EBITDA margin (vs.
11.5% at Marstrom or 15% at the Astor Industry segment)

At equity investment in "Nordic Shield Group" (NSG) and indirectly in
"Cesium". In a more complex deal, Astor acquired 30% of NSG, a Swedish civil
defence group offering shielded structures like shelters, data centers, and
containers, primarily for civil use. NSG is also in advanced talks to
acquire 100% of "Cesium", a producer of patented MSVs (mobile security
vaults for rapid military deployment, bullet- and explosionproof). Cesium
reported SEK 125m in FY'24 sales with a 26.4% EBITDA margin and has an order
backlog of c. SEK 100m. Astor will support NSG's acquisition by subscribing
to a 30% capital increase (SEK 54.5m in cash), with the option to raise its
stake to 39% (for another SEK 50m) if no other NSG shareholders participate.
Based on this, the standalone acquisition multiple of Cesium is 8.1x
EV/EBITDA, excluding NSG, whose financials are undisclosed. Thus, the
blended multiple (NSG + Cesium) should be well below 8x EV/EVITDA. NSG will
be part of the new segment Astor Protect, next to Airsafe (prev. Astor
Tech). Mind you, NSG will not be consolidated, but recorded at equity.

Against this backdrop, we reiterate our BUY recommendation with an unchanged
PT of SEK 40.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/32674.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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2141032 20.05.2025 CET/CEST