Original-Research: Swissnet AG (von NuWays AG): BUY

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Original-Research: Swissnet AG - from NuWays AG

02.06.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to Swissnet AG

Company Name: Swissnet AG

ISIN: CH0451123589

Reason for the research: Update

Recommendation: BUY

from: 02.06.2025

Target price: EUR 20.00

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Strong preliminary FY24 highlighted by strong FCF

Swissnet released preliminary FY24 figures showcasing the successful

operational turnaround achieved in FY23 as well as strong growth, even

exceeding the guidance on the top-line. In detail:

FY24p sales increased by 112% YoY to CHF 13.1m (eNuW: CHF 12.8m; eCons: CHF

12.8m), slightly ahead of the company's guidance of CHF 12.9m. The strong

top-line growth was driven by a combination of solid organic momentum and

the full-year contribution from prior acquisitions completed in 2023

(Socialwave, Netopsie, KADSOFT & T2), underscoring the scalability of

Swissnet's platform and the successful integration of acquired entities.

Notably, SaaS revenues rose 55% yoy to CHF 7.0m, while hardware sales surged

270% yoy to CHF 6.1m. Recurring revenues comprised ~77% of total sales,

highlighting the strength and visibility of the group's business model

Accordingly, FY24p adj. EBITDA improved significantly to CHF 2.5m (eNuW: CHF

2.5m; eCons: CHF 2.4m), compared to CHF -0.4m in FY23, thus implying a

margin of 19.2%. This arrived predominantly on the back of scale-driven

operating leverage as well as realized synergies stemming from previous

acquisitions. Notably, FCF came in much stronger than expected at CHF 2.6m

(eNuW: CHF -0.5m, eCons: CHF 0.3m), highlighting the company's cash

conversion ability.

Pro-forma result sets the stage. On a pro-forma basis, accounting for the

full-year contribution of Swissnet AG (incl. Swissnet ICT), the Group would

have generated CHF 21.0m revenues (+25% yoy) and CHF 4.4m EBITDA (+438%

yoy). These figures represent the baseline for FY25e comparables, further

supported by a high degree of operating leverage and synergy realization in

the post-merger structure. Against this backdrop, management's guidance of

CHF 26-28m sales (eNuW: CHF 26.5m, eCons: CHF 27.1m) and c. CHF 6m adj.

EBITDA (eNuW: CHF 6.1m, eCons: CHF 6.2m) appears reasonable.

On top of the strong preliminary release, recent contract wins (e.g., CHF

1.2m IoT deal with a tobacco multinational, EUR6.2m infrastructure contract

with a European drugstore chain) and expansion into Morocco with Aleph

Hospitality added further momentum, which has not yet materialized in the

share price, visible in the undemanding valuation of only 4.4x EV/EBITDA

FY26e.

Reiterate BUY with an unchanged EUR 20 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/32764.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

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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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2148574 02.06.2025 CET/CEST

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