BUY
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Original-Research: Einhell Germany AG - from NuWays AG
Classification of NuWays AG to Einhell Germany AG
Strong prel. FY24 and promising FY25e guidance; chg. est. & PT Topic: Einhell released strong preliminary FY24 numbers above our estimates and the company’s guidance. Further, Einhell announced a promising FY25e guidance. Preliminary FY24 sales increased 14.1% yoy to € 1,109m, beating our estimates (eNuW: € 1,080m) and the company’s guidance of € 1,070m. Q4 sales came in at € 269m, up 24.8% from last year. Sales developed positively across all geographic regions, especially within Western and Eastern Europe. Moreover, sales were driven almost exclusively from higher volumes as price increases for FY24 were not material. Like in the previous quarters, a major driver was the strong demand for Einhell’s Power X-Change products, which share increased to c. 50% of total sales for FY24 (vs. 44% in FY23). The strong preliminary figures also are a further confirmation that Einhell’s strategic focus on cordless battery-powered tools is paying off thanks to the high value for its customers (e.g. flexibility, less noise & maintenance). Further, brand partnerships with FC Bayern and Mercedes AMG Petronas F1 clearly strengthened Einhell’s brand perception and helped becoming the strongest battery platform in the German market. Preliminary FY24 EBT increased disproportionately by 30.6% yoy to € 98.5m (eNuW: € 88.0m), leading to a solid 8.9% margin, up 1.1ppts yoy (guidance 8.0-8.5%). Q4 EBT doubled yoy to € 25.8m with a 3.7ppts yoy margin increase to 9.6%. Next to the operating leverage a higher share of PXC products was also beneficial for the enhanced profitability. FY25e guidance out: As already flagged in our recent update, FY25e is likely to be another successful year for Einhell. Management expects sales to come in between € 1,150-1,175m with an EBT margin between 8.5-9.0% in FY25e, which looks plausible to us. We continue to like the stock and confirm Einhell as one of NuWays’ Alpha Picks. Reiterate BUY with a new PT of € 90 (old: € 86) based on DCF. You can download the research here: http://www.more-ir.de/d/31861.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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