Classification of NuWays AG to Scandinavian Astor Group AB
| Company Name: |
Scandinavian Astor Group AB |
| ISIN: |
SE0019175274 |
| |
| Reason for the research: |
Update |
| Recommendation: |
BUY |
| from: |
14.05.2025 |
| Target price: |
SEK 40.00 |
| Target price on sight of: |
12 months |
| Last rating change: |
|
| Analyst: |
Henry Wendisch |
Q1 confirms strong organic growth momentum for 2025, PT up
Q1 sales rose by 105% yoy to
SEK 75m, whereof
SEK 24m came from past M&A. More importantly, this implies 38% yoy organic sales growth, showing the strong underlying rise in demand for Astor’s products and services. Against this backdrop, our organic sales growth assumption of 30% yoy (old: 28% yoy) for FY’25e could still turn out to be conservative, also because Q1 is seasonally less strong. On a segmental basis, the Tech segment increased sales from
SEK 0.6m to
SEK 24m, mainly driven by the consolidation of Scandiflash, whereas the Industry segment grew sales by 50% yoy to
SEK 54m.
Order intake grew proportionately to
SEK 67m (0.9x book-to-bill), whose rapid increase should also stem 2/3 from past M&A and 1/3 from organic OI growth. The current order backlog thus stands at
SEK 200m, of which
SEK 150m are due for delivery in FY’25e, providing excellent visibility.
Profitability showed an even stronger performance with group EBITDA expanding by 282% yoy to
SEK 8.1m (11% margin, + 5pp yoy). Key drivers, among other things, were (1) the consolidation of Scandiflash into the Tech Segment, raising the EBITDA margin to 14.1% (vs. negative in Q1’24), (2) a 2.2pp yoy EBITDA margin expansion at the Industry segment to 13.7%, driven by a mix of margin accretive acquisitions and operating leverage and (3) a better coverage and a reduction of overhead holding expenses (
SEK 1.6m in Q1 vs.
SEK 1.7m in Q1’24).
Consequently, CFO expanded to
SEK 6.7m (83% of EBITDA cash conversion) and FCF arrived positive for the first time at
SEK 1.5m and net debt amounted to
SEK 40m (
SEK 84m incl. leases). Mind you, the proceeds of the
SEK 150m capital increase resolved at the end of March have flown in April and will thus will be reflected with Q2 results.
Astor started with strong momentum into FY’25e. With a well filled M&A war chest and plenty of acquisition target in the short-term M&A pipeline with a total size of
SEK 500m in annual revenues, Astor looks set to continue strong inorganic growth. Also, Sweden’s increased defence spending to 3.5% of GDP by 2030 (prev. target: 2.6% by 2030) should also bode well for continuously high organic sales growth. Therefore, we reiterate our BUY recommendation with an increased PT of
SEK 40.00 (old:
SEK 39.00), based on DCF
You can download the research here:
http://www.more-ir.de/d/32596.pdf
For 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 Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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