Company Announcements

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:	17.06.2025
Target price:	54.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch

Another deal unlocks opportunities in the Baltics, PT up.

Yesterday, Astor announced the acquisition of AMMUNITY and with that the market entry into the Baltics.

Astor has yet again pulled off a strong M&A deal by acquiring AMMUNITY for only 4.4x EV/EBITDA. The company is based in Riga and is Latvia’s only manufacturer of military small arms ammunition and a leading provider of fine caliber ammunition in the Baltics (all NATO standard) for Armed Forces/procurement
agencies in the Baltics. With FY’24 sales of SEK 103m (+80% yoy) and a 21% EBITDA margin, the company shows a strong growth and profitability profile, underpinned by a standing contract with the Latvian government worth SEK 400m coupled with an option for further SEK 400m. Moreover, it has additional
request for ammunition worth SEK 360m from a third customer, thus leading to a total soft order backlog of SEK 1.16bn (i.e. >10x FY’24 sales), creating a strong visibility on demand, in our view.

Perfect strategic fit and door opener into the Baltics. Next to strong fundamentals, this acquisition looks set to perfectly fit into Astor’s product portfolio. By now serving ammunition (next to drone and radar jammers, composite parts and various other high-tech equipment), it diversifies the revenue mix and gives it a slightly more recurring touch. More importantly, Astor now has a foot in the door at the Baltic Armed Forces/procurement agencies and thus enters the Baltic defence market by potentially up-selling all of Astor’s product portfolio. Also, the other way, Astor can now also offer the Scandinavian Armed Forces/procurement agencies with supply of ammunition from the close neighbor Latvia, which currently mostly rely on the Norwegian company 'Nammo' for their ammunition supply.

Astor to fund growth investments. The strong demand for ammunition directly creates the need to expand, whose expenses are likely to be financed by the parent company Astor, given that further debt intak at AMMUNITY (200% net debt/equity, based on acquisition value of equity) should not be healthy. In our view, this should also explain the comparably low acquisition multiple, as it does not contain the upcoming growth investments.

Against this backdrop, we confirm our BUY recommendation. We now incorporate the recent M&A (100% of Carbonia; 39% of NSG/Cesium, recorded at equity and now 100% of AMMUNITY) in our estimates, as we assume the closings to go through as announced. Therefore, we raise our estimates accordingly and arrive at a new PT of SEK 54 (old: SEK 40), based on DCF.

You can download the research here: http://www.more-ir.de/d/32862.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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