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Original-Research: MAX Automation SE - from NuWays AG

05.08.2024 / 09:02 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
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 MAX Automation SE

Company Name: MAX Automation SE
ISIN: DE000A2DA588

Reason for the research: Update
Recommendation: BUY
from: 05.08.2024
Target price: EUR 7.50
Last rating change:
Analyst: Konstantin Völk

Muted Q2 numbers // guidance specified; chg. est. & PT

Topic: MAX released its Q2 numbers on Friday with sales above and EBITDA
below our estimates. Further, the company specified its FY outlook to the
lower end of the guidance range.

Q2 Sales came in at EUR 98m (eNuW: EUR 92m), a 4.4% increase yoy carried by a
strong ELWEMA segment (+39% yoy). EBITDA decreased 28% to EUR 7.6m (eNuW: EUR
7.6m) accompanied by a margin decrease of 3.5pp to 7.8%. Profitability was
impacted by wage inflation, an increase in personnel and the temporary need
for costly external services, especially within the bdtronic segment. Order
intake decreased 3.1% yoy affected by continued investment reluctance from
customers due to macroeconomic uncertainties, which led to a relatively low
order backlog of EUR 184m compared to the previous years (-11% yoy).

Sales within bdtronic declined by 10% yoy in the second quarter to EUR 21m
impacted by a muted order intake since Q4'23. EBITDA decreased 82% to EUR 0.9m
with a margin of 6.9% (-14.3pp). The increase in personnel cost was a main
pressure point, next to a taff comparable base and the top-line decrease.
Driven by extraordinarily strong order intake in H1'23 (EUR 68m; +77% yoy),
bdtronic was working on the edge of its capacity and occupied in addition c.
120 external services on the peak in FY23 to handle the rapidly increased
demand. However, despite the recently lower order intake, bdtronic could
only slowly and successively reduce their number because of the
idiosyncratic know-how of these external services within specific projects.

bdtronic order intake: As the demand for electric vehicles in the US and
Europe calmed down due to affordability concerns, lack of adequate
infrastructure and uncertain economic conditions, OEMs hesitate to expand
their capacity for EVs. Hence, the order intake in the cyclical business
declined significantly by 49% yoy to EUR 12.9m with an order backlog of EUR 34m
(-56% yoy). We expect the situation to remain challenging in the coming
quarters and lower our FY24e sales estimates for bdtronic (eNuW: EUR 85m).

ELWEMA grew its sales by 39% yoy to EUR 18m thanks to a steady stream of
follow-up orders. EBITDA came in at EUR 2.1m, an 11% increase yoy (11.9%
margin). Thanks to the strong order intake of EUR 40m (+32%) in H1'24 and long
lead times of 12-18 months, the company secured already enough projects for
FY25e. -continued-

MA micro: The divestment of MA micro has received its merger control
approval and is expected to be closed in H2'24e. The proceeds will mainly be
used to reduce the interest-bearing debt by partially repaying the
syndicated loan (eNuW interest rate: 7.5%).

Guidance specified: MAX specified its FY24e outlook to the lower end of the
guidance range. The EBITDA target seems plausible to us, however due to the
muted order backlog and intake, we expect sales to come in below the
guidance range (eNuW: EUR 378m). Despite the cyclical headwind in the EV
sector, mid-term prospects remain intact as well as the competitive quality
of the core companies bdtronic and Vecoplan.

Hence, we reiterate our BUY rating with a new PT of EUR 7.50 (old: EUR 8.20)
based on DCF.

You can download the research here: http://www.more-ir.de/d/30361.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
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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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