Original-Research: Einhell Germany AG - from NuWays AG 27.02.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
27.02.2025 - 09:01:28Original-Research: Einhell Germany AG (von NuWays AG): BUY
Original-Research: Einhell Germany AG - from NuWays AG
27.02.2025 / 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 Einhell Germany AG
Company Name: Einhell Germany AG
ISIN: DE000A40ESU3
Reason for the research: Update
Recommendation: BUY
from: 27.02.2025
Target price: EUR 90.00
Target price on sight of: 12 months
Last rating change:
Analyst: Konstantin Völk
Strong prel. FY24 and promising FY25e guidance; chg. est. & PT
Topic: Einhell released strong preliminary FY24 numbers above our estimates
and the company's guidance. Further, Einhell announced a promising FY25e
guidance.
Preliminary FY24 sales increased 14.1% yoy to EUR 1,109m, beating our
estimates (eNuW: EUR 1,080m) and the company's guidance of EUR 1,070m. Q4 sales
came in at EUR 269m, up 24.8% from last year.
Sales developed positively across all geographic regions, especially within
Western and Eastern Europe. Moreover, sales were driven almost exclusively
from higher volumes as price increases for FY24 were not material. Like in
the previous quarters, a major driver was the strong demand for Einhell's
Power X-Change products, which share increased to c. 50% of total sales for
FY24 (vs. 44% in FY23).
The strong preliminary figures also are a further confirmation that
Einhell's strategic focus on cordless battery-powered tools is paying off
thanks to the high value for its customers (e.g. flexibility, less noise &
maintenance). Further, brand partnerships with FC Bayern and Mercedes AMG
Petronas F1 clearly strengthened Einhell's brand perception and helped
becoming the strongest battery platform in the German market.
Preliminary FY24 EBT increased disproportionately by 30.6% yoy to EUR 98.5m
(eNuW: EUR 88.0m), leading to a solid 8.9% margin, up 1.1ppts yoy (guidance
8.0-8.5%). Q4 EBT doubled yoy to EUR 25.8m with a 3.7ppts yoy margin increase
to 9.6%. Next to the operating leverage a higher share of PXC products was
also beneficial for the enhanced profitability.
FY25e guidance out: As already flagged in our recent update, FY25e is likely
to be another successful year for Einhell. Management expects sales to come
in between EUR 1,150-1,175m with an EBT margin between 8.5-9.0% in FY25e,
which looks plausible to us.
We continue to like the stock and confirm Einhell as one of NuWays' Alpha
Picks. Reiterate BUY with a new PT of EUR 90 (old: EUR 86) based on DCF.
You can download the research here: http://www.more-ir.de/d/31861.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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2092407 27.02.2025 CET/CEST
