Original-Research: Einhell Germany AG (von NuWays AG): Buy 
Fr, 15.11.24 09:06· Quelle: dpa-AFX

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Original-Research: Einhell Germany AG - from NuWays AG

15.11.2024 / 09:05 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Einhell Germany AG

     Company Name:                Einhell Germany AG
     ISIN:                        DE000A40ESU3

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        15.11.2024
     Target price:                EUR 86.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Konstantin Völk

Final Q3 results out & guidance confirmed; chg. est.

Topic: Einhell released strong final Q3 numbers in line with preliminary
results. Further, Einhell confirmed its previously increased FY24e guidance
(company news 10 October).

Q3 sales increased 14.5% yoy to EUR 263m thanks to the ongoing strong demand
for the company's Power X-Change products (9M'24: 50% PXC share; +5ppts
yoy). Q3 sales in Western Europe incl. DACH increased 24.7% to EUR 146m, still
making up the bulk of overall revenue with c. 55% of Group sales. Sales in
Eastern Europe came in at EUR 29.8m, a 7.6% increase yoy supported by a strong
demand from Turkey despite the difficult local economic environment.
Overseas and Other Countries showed a flat yoy sales development at EUR 72.8m,
driven by a solid performance of Einhell Australia but offset by top-line
challenges in Einhell Canada and South Africa.

EBT for Q3'24 increased disproportionately by 22.5% to EUR 22.6m with an EBT
margin of 8.6% (+0.6ppts yoy) mainly due to a decreased material cost ratio
and operating leverage leading to a decreased personnel cost ratio. The
ratio of material cost declined 2.1ppts yoy to 58.2% thanks to the
increasing share of PXC products, which tend to deliver higher gross
margins. While personnel costs rose 8.5% yoy to EUR 36.4m due to wage
inflation and higher variable compensation, headcount decreased 2.5% yoy
predominantly due to reductions in Thailand and the sale of Einhell Colombia
on 31 May 2024. However, despite the absolute increase in personnel costs,
the expense ratio decreased 0.8ppts yoy thanks to a higher turnover. On the
other hand, other operating expenses increased disproportionately by 19.5%
to EUR 45.3m (17.2% of sales; +0.7ppts yoy) mainly due to higher advertising
costs.

Einhell confirmed its FY24e guidance of EUR 1,070m sales and an EBT margin in
the range of 8.0-8.5%. In our view, the new guidance looks still plausible
thanks to the strong demand for Einhell's Power XChange products and the
favorable top-line development in 9M. Further, we expect a 0.4ppts yoy
increase in EBT margin to 8.2% as an increasing PXC share and operating
leverage is kicking in. Going forward, we expect the positive momentum to
continue during FY25e (eNuW sales: EUR 1,145m).

Reiterate BUY with an unchanged PT of EUR 86 based on DCF.

You can download the research here: http://www.more-ir.de/d/31321.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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2030709 15.11.2024 CET/CEST

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