THE NAGA GROUP AG (from NuWays AG): BUY

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Original research: THE NAGA GROUP AG – by NuWays AG

19.09.2024 / 09:00 CET/CEST

Dissemination of a survey, broadcast by EQS News – a service of EQS

Group AG.

The publisher is solely responsible for the content of this research.

the results of this research do not constitute investment advice or a

invitation to conduct certain stock exchange transactions.

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Classification of NuWays AG to THE NAGA GROUP AG

Company Name: THE NAGA GROUP AG

ISIN code: DE000A161NR7

Reason for the investigation: Update

Recommendation: BUY

from: 19.09.2024

Target price: EUR 1.20

Last review change:

Analyst: Frederik Jarchow

Collaboration with BVB to increase reach

Subject: NAGA recently entered into a sponsorship partnership with Borussia

Dortmund for the current and upcoming Bundesliga season. In detail:

This partnership now makes NAGA one of the official

partner of BVB. This gave NAGA exclusive rights to the team’s

BVB partner logo in multiple markets and the rights to use the club player logo

image in branding materials. In addition, NAGA’s brand will be present at

the LED advertising boards at home games on the Borussia Signal stadium

Iduna Park. With this, NAGA wants to increase its brand awareness in

Germany, which is the most important core market and attracts new target groups

groups. Since BVB also plays in the Champions League, the collaboration would

also increase brand awareness in other key regions worldwide.

We believe that this is a sensible sponsorship partnership, as BVB is not only a

huge worldwide fan community, but also enjoys high likeability ratings from

fans of other clubs. The price per year is expected to be quite moderate

with less than 1 million euros (eNuW) and should already be considered in marketing

budget for this year and next year.

In a larger context, the collaboration with BVB is only one part of it.

paving the way for the 2026 vision of USD 250 million in revenue and 40%

EBITDA. While we consider this view to be quite optimistic, the past has

has already shown that a gradual positive change in sentiment could

have a huge impact on NAGA’s profit and loss account. The leverage of the combined Group

could even scale this effect. Yet, in our base case scenario

conservative, with only a turnover of 90 million euros and an EBITDA of 19 million euros (22%) expected

EBITDA margin), leaving room for positive surprises. Looking to 2024,

Estimated 15.9 million transactions on the back of a slowly revitalizing retail sector

The brokerage should increase its turnover to 71.8 million euros, based on an average turnover per

trading of EUR 5.0. Synergy effects and continued disciplined spending are

also expected to increase EBITDA, which is expected to amount to EUR 11.5 million.

Overall, the recovery in client activity in the brokerage sector,

in combination with the cross-selling and synergy effects resulting from the merger,

fuel for NAGA’s growth. Details of the growth plan will be presented during our

roundtable discussion, today at 10:00 CEST.

BUY with an unchanged PT of EUR 1.20 based on DCF

You can download the study here: http://www.more-ir.de/d/30819.pdf

For more information, please visit our website: www.nuways-ag.com/research

Contact us for questions:

NuWays AG – Equity Research

Website: www.nuways-ag.com

Email address: [email protected]

LinkedIn: https://www.linkedin.com/company/nuwaysag

Address: Mittelweg 16-17, 20148 Hamburg, Germany

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This notification is not an anlageberatung or aufforderung zum Abschluss

best listed companies.

Possible consequences for conflict of interest according to § 85 WpHG in the case of above

Analyze analyses that occur in the full analysis.

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1991057 19.09.2024 Central European Time/Central European Time

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