Original-Research: R. Stahl AG (von NuWays AG)

Original-Research: R. Stahl AG - from NuWays AG

Classification of NuWays AG to R. Stahl AG

Company Name: R. Stahl AG
ISIN: DE000A1PHBB5

Reason for the research: Update
Recommendation: Kaufen
from: 18.04.2024
Target price: EUR 29.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Christian Sandherr

Strong FY23 results with a record high in revenue; chg. est.

Topic: R. Stahl confirmed its strong FY23 prelims and released a promising
FY24e guidance supported by a solid preliminary first quarter revenue of €
84.7m.

To recap, FY23 sales increased by 21% yoy to a record high of € 331m,
exceeding the guidance range of € 305-320m. The remarkable increase in
revenue was carried by an unbroken demand for electrical explosion
protection solutions in the LNG and gas industry as well as further
improved supply chains and price increases. The adj. EBITDA grew by 73% to
€ 38.6m, hitting the guidance range of € 35-40m with a significantly
improved margin of 11.7% (+3.6 pp) due to price increases as well as a good
utilization of production capacities and targeted cost management.

What’s new: Free Cashflow improved to € 0.3m (FY23: € -4.4m), due to a
strong operating performance and despite a further expansion of working
capital. For instance, inventories and prepayments rose 30% yoy to € 64m
(FY22: € 37m) due to an increased stock in electronic materials.
Furthermore, R. Stahl recognized a full impairment of the 25% stake in the
Russian company ZAVOD Goreltex as expected (NuWays Update 16.02.2024).
However, the € 10.3m write-off did not affect liquidity and adjusting for
the impairment, EBT would have been € 12.3m (FY22: € 3.9m).

Solid Q1 sales with profitability on a high level: Preliminary sales in the
first quarter came in at € 84.7m (eNuW: € 81m), an 8.5% increase yoy (Q1
FY23: € 78.1m). After a subdued order intake of € 74.5 in the fourth
quarter, due to a soft chemical industry in the DACH region, order intake
came in at € 92.3m, slightly below last year (Q1 2023: € 96.7m). Adj.
EBITDA in the first quarter decreased 19% to € 8.4m (eNuW: € 7.9m), with a
lower but still solid margin of 9.9% (-3.4 pp) due to higher personnel
costs and a € 2m one-off from the implementation of the EXcelerate strategy
program.

Conservative FY24e guidance: Management expects sales in the range of €
335-350m (eNuW: € 347m) and an adj. EBITDA of € 35-45m (eNuW: € 39.7m)
supported by a strong demand from the LNG industry. In our view, the
guidance seems reasonable thanks to R. Stahl having done its homework by
implementing changes on the back of efficiency, structural trends kicking
in and a high preliminary order backlog of € 123m at the end of Q1. We
reiterate our BUY rating with a slightly reduced PT of € 29 (old: € 31),
based on DCF.

You can download the research here:
http://www.more-ir.de/d/29451.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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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.