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Original-Research: MAX Automation SE - from NuWays AG

22.07.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to MAX Automation SE

Company Name: MAX Automation SE
ISIN: DE000A2DA588

Reason for the research: Update
Recommendation: BUY
from: 22.07.2024
Target price: EUR 8.20
Last rating change:
Analyst: Konstantin Völk

Q2 preview // business climate expected to remain muted

Topic: MAX will release its 2nd quarter on August 2 nd . We expect sales and
margins to remain muted.

Investment reluctance among customers started already in the second half of
FY23 and should improve only modestly for the second quarter this year.
Customers hesitate to place orders due to a challenging macroeconomic
environment, restrictive financing conditions and persistently high price
levels. After three quarters of declining order intake, we saw in Q1 FY24
for the first time a qoq increase to EUR 90m (+26% qoq; -21% yoy). However,
due to partially long lead times and a low order backlog at the end of FY23
(EUR 206m), sales should stay muted in Q2. We expect sales of continued
operations to decline slightly by 1.5% yoy to EUR 92m with an EBITDA margin of
8.2% (- 3.3pp) due to pressure from wage inflation and product mix.

Bdtronic's revenue should increase to EUR 26m (eNuW: +11.5% yoy) due to a
solid order backlog of EUR 52m at the end of FY23 and a strong service
business. However, we expect EBITDA to decrease c. 32% yoy to EUR 3.4m (eNuW:
-8.3pp in margin), due to wage inflation, an increase in personnel and an
extraordinarily strong comparative period. This is also indicated by a 26%
increase in the average number of employees in Q1 to 547 (Q1 FY23: 435) due
to an elevated sales level and a high workload per employee in FY23. In
addition, there should be some pressure on margins driven by an unfavorably
product mix, as the currently fast-growing impregnation business has lower
margins compared to dispensing.

We expect Vecoplan's revenues to decrease by 10% yoy in Q2 to EUR 37m as we
further see investment reluctance in the recycling/waste division. This has
already led to a 15.6% yoy decline in order intake in FY23 and a 35%
decrease in order backlog (EUR 63m end of FY23). EBITDA should come in at EUR
3.7m with a margin of 10.1% (eNuW).

Nevertheless, mid-term prospects remain bright due to the strong competitive
position of its portfolio companies. For instance, Bdtronic is the number
one supplier of impregnation machines in the production of electric drives
and the third largest supplier for dispensing machines in the automotive
market. Driven by its advanced proprietary technology, bdtronic should
largely benefit from the ongoing electrification of cars in the mid- and
long-term, even if it takes place slower than initially expected.

We reiterate BUY with an unchanged PT of EUR 8.20, based on DCF.

You can download the research here: http://www.more-ir.de/d/30263.pdf
For additional information visit our website: www.nuways-ag.com/research

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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1950535 22.07.2024 CET/CEST

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