Original-Research: Cantourage Group SE - from NuWays AG 27.01.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

27.01.2025 - 09:01:25

Original-Research: Cantourage Group SE (von NuWays AG): Buy

Original-Research: Cantourage Group SE - from NuWays AG

27.01.2025 / 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.

---------------------------------------------------------------------------

Classification of NuWays AG to Cantourage Group SE

     Company Name:                Cantourage Group SE
     ISIN:                        DE000A3DSV01

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        27.01.2025
     Target price:                EUR 12.50
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

FY24 with explosive growth // new high(t)s in sight; PT Up

Topic: Following the regulatory changes in April, sales growth has been
stellar throughout the remainder of FY24. Thanks to various de-bottlenecking
measures and unbroken demand, Cantourage looks poised for new operational
highs.

Based on preliminary figures, Cantourage ended FY24 with EUR 51.4m sales, a
118% yoy increase, beating the guidance that the company raised to EUR 46-50m
at the beginning of December. The fourth quarter alone accounted for EUR
21.4m, 185% above previous year's level of EUR 7.5 and only slightly less than
to the whole year 2023. With EUR 8.5m sales, December beat the previous
monthly high of EUR 7.5m. The strong sequential increases throughout the year
were carried by successful de-bottlenecking efforts at processing sites and
an increase of supplier depth.

Importantly, with a scaling top-line, we also expect Cantourage to have
reached EBITDA profitability for the first time; eNuW: 7.5% margin. The
expected gross margin of above 37% underpins the margin potential with
growing sales volumes.

What to expect from FY25: In light of the favorable market dynamics, notably
increased processing capacities (>14t annually), the Polish market entry at
the end of last year and the relaunch of its own telemedicine platform,
telecan

, strong growth is out of the question. We currently model a 67% yoyincrease to roughly EUR 86m despite an FY run rate of slightly more than EUR100m, based on the December sales figure to account for weaker summer monthsand a margin of safety. With this, the EBITDA margin is seen to furtherincrease to 10%, in our view.

Threats from political uncertainties limited. As more conservative partiesare likely to gain power in the upcoming election in Germany (end of Feb.),which have historically opposed a broader cannabis legalization, we see thepotential of re-regulation on the recreational side, i.e. cannabis clubs andgrowing own plants. Importantly, Cantourage is only active in the medicalspace, we hence regard the risks to its business model as limited.

Taking into account the strong growth during recent years and the prospectsstemming from growing patient numbers at its 'home-turf' Germany and theongoing regional expansion, the current valuation seems undemanding at 6.3xEV/EBITDA FY25e. BUY with a new EUR 12.50 PT (old: EUR 12) based on DCF.

You can download the research here: http://www.more-ir.de/d/31663.pdfFor additional information visit our website:https://www.nuways-ag.com/research-feed

Contact for questions:NuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: research@nuways-ag.comLinkedIn: https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlussbestimmter Börsengeschäfte.Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim obenanalysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Archive at www.eqs-news.com

---------------------------------------------------------------------------

2074779 27.01.2025 CET/CEST