Original-Research: MAX Automation SE (von NuWays AG)

Original-Research: MAX Automation SE - from NuWays AG

Classification of NuWays AG to MAX Automation SE

Company Name: MAX Automation SE
ISIN: DE000A2DA588

Reason for the research: Update
Recommendation: Kaufen
from: 29.04.2024
Target price: EUR 8.20
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Konstantin Völk

MAX achieved attractive sales price for MA micro; chg. est.
Topic: MAX Automation has come to an agreement on the divestment of its
subsidiary MA micro with an attractive purchase price, sale of MA micro
anticipated in the second half of FY24e.
MAX Automation announced the sale of MA micro (intention was announced in
September 2023), which was already part of discontinued operations at the
end of FY23 to the Japanese conglomerate, Hitachi Ltd. The purchase price
of € 71.5 - 76.5m is still subject to the FY24e performance of MA micro.
After the acquisition is completed, MA micro will join JR Automation
Technologies, a Hitachi group company, and market leader in providing
advanced automation solutions and digital technologies in the robotics
systems integration business. The transaction is subject to various
customary conditions, in particular the granting of merger control
approvals and is expected to be closed in the second half of FY24e. MAX
intends to use the proceeds from the sale primarily to reduce financial
liabilities by partially repaying the syndicated loan (end of FY23: €
The sale has no influence on our financial estimates of FY24e as MA micro
was already part of discontinued operations. However, as the proceeds will
be used to partially repay the syndicated loan (eNuW: 10% interest rate),
annual interest expenses should decline by € 7.4m, potentially boosting EPS
by 40% (eNuW), not reflected in our estimates until the transaction closed.
Taking into account the weak operating performance of MA micro during the
last year (-28% revenue yoy, -17% EBITDA yoy) and a likely further
deterioration in FY24 due to the subdued order momentum (eNuW), the
purchase price looks attractive in our view (eNuW FY24e: Sales € 40m, €
6.6m EBITDA). The implied sales multiple of 11x EV/EBITDA is 30% above the
group’s  current valuation of 8.5x, which underpins the undervaluation of
the stock. Mind you, the crown jewel bdtronic and Vecoplan have bright
business prospects and should be worth considerably more than 8.0x
We reiterate BUY with an unchanged € 8.20 PT based on DCF.

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