Original-Research: Cantourage Group SE - from NuWays AG Classification of NuWays AG to Cantourage Group SE Company Name: Cantourage Group SE ISIN: DE000A3DSV01 Reason for the research: Update Recommendation: Kaufen from: 28.05.2024 Target price: EUR 10.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Christian Sandherr Debottlenecking production capacities Topic: Cantourage and Portocanna entered into a strategic partnership which offers Cantourage a capital light way to increase its production capacities significantly amid the surging demand for medical cannabis in Germany.

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

Original-Research: Cantourage Group SE - from NuWays AG

Classification of NuWays AG to Cantourage Group SE

Company Name: Cantourage Group SE
ISIN: DE000A3DSV01

Reason for the research: Update
Recommendation: Kaufen
from: 28.05.2024
Target price: EUR 10.00
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Christian Sandherr

Debottlenecking production capacities
 
Topic: Cantourage and Portocanna entered into a strategic partnership which
offers Cantourage a capital light way to increase its production capacities
significantly amid the surging demand for medical cannabis in Germany.
 
Legalization light is transforming the market. As of the beginning of
April, cannabis is no longer being considered a narcotic in Germany,
notably simplifying dispensing by pharmacies and prescriptions by doctors.
Receiving a prescription for medical cannabis has become as easy as for
ibuprofen 600. With its own telemedicine platform, telecan

, and the globalsupplier network consisting of more than 60 grower partners, Cantourage iswell positioned to benefit from it. This change can also be seen in salesgrowth figures.

While Q1 (on preliminary basis) started out with "only" 26% yoy salesgrowth to EUR 6.2m, growth in April (the first month following the changesfrom the Cannabis Act) has already shown a significant acceleration to 160%compared to last year. While we do expect growth to somewhat slow down, itis seen to remain in the high double-digits throughout the remainder of theyear; eNuW FY24e sales +81% yoy. As a result, EBITDA should turn positivefollowing last year's EUR 500k loss (eNuW EUR 1.8m).

In order to facilitate the surged demand, Cantourage entered into astrategic agreement with Portocanna,a Portuguese medical cannabis processor. Thanks to its state-of-the-artproduction facility, Cantourageis increasing its annual processable capacities from currently 7-8t toroughly 14t without having to significantly invest. Assuming an averageselling price of EUR 7.5 per gram, this should enables Cantourage to processproducts worth more than EUR 100m p.a., in our view. Importantly, thisagreement also provides the company with additional flexibility in regardsto further scaling production capacities if needed during the next fewyears.

Besides the additional production capacities, Cantourage is also able toexclusively distribute Portocanna's own production line 'Hexacan', underwhich Portocanna brings together the products of numerous growers fromPortugal and Spain.

Cantourage remains a BUY with an unchanged EUR 10 PT based on DCF.

You can download the research here:http://www.more-ir.de/d/29917.pdfFor additional information visit our websitewww.nuways-ag.com/research.

Contact for questionsNuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: [e-mail]: https://www.linkedin.com/company/nuwaysagAdresse: 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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The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.

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