Buy
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Original-Research: Swissnet AG - from NuWays AG
Classification of NuWays AG to Swissnet AG
Merger finalized / Strong current trading Topic: In January, Swissnet finalized the merger and rebranding into Swissnet Group. Moreover, the company reported strong new orders at the start of the year. In detail: At the Extraordinary General Meeting on January 20, the shareholders of beaconsmind AG unanimously voted for the renaming into Swissnet AG as well as the merger between Swissnet and beaconsmind. In our view, this marks an important milestone in the company’s transformation into a market leader in IT infrastructure, cloud-based communication and AI-driven hospitality solutions. Moreover, the EGM approved the introduction of a capital range between CHF 850k and CHF 1.27m. With this, the company has the flexibility to actively respond to arising opportunities in accordance with its targeted growth strategy. In our view, this is a clear sign the management is continuing to screen the market, which is in turn offering a certain upside to our estimates in the form of future M&A activites. Strong current trading. In January, the company received two major orders underscoring its growth trajectories while also confirming Swissnet’s market leading position in hospitality and IT infrastructure. First, Swissnet announced a new project with long-standing customer Vitanas, one of Germany’s larges nursing home operators. The project includes the modernization of the communication infrastructure at Vitanas’ Peine Hospital and has a volume of € 0.8m. This was followed by the announcement, that the company extended its partnership with Philip Morris, including advancing the digitalization of the customers’ PoS systems in Germany and Austria as well as providing 11k IoT SIM cards for digital signage monitors. According to management, the project will generate sales to the tune of almost € 1.3m. Overall a strong start into the year, showing that the company is on track to deliver on its growth and profitability targets. For FY25e, management is targeting sales in the range of CHF 26-28m (eNuW: CHF 26.5m) and an EBITDA in the range of CHF 6-7m (eNuW: CHF 6.1m), implying a margin of 24.1% at mid-point (eNuW: 23.0%). In our view, this is currently not well reflected in the share price, given a valuation multiple of 9.7x EV/EBITDA FY25e (4.9x FY26e). We hence reiterate BUY with an unchanged € 20 PT based on DCF. +++ LINK to register for digital roundtable with CEO on February 11 +++ You can download the research here: http://www.more-ir.de/d/31699.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 ++++++++++ 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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2079353 03.02.2025 CET/CEST
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