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Original-Research: Hoenle AG - from NuWays AG

03.12.2025 / 09:00 CET/CEST
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Classification of NuWays AG to Hoenle AG

Company Name: Hoenle AG
ISIN: DE0005157101

Reason for the research: Update
Recommendation: BUY
Target price: EUR 15
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

FY24/25e to come in as expected // FY25/26 with growth; chg.

Following recent conference attendances, we are under the impression that
Hoenle is well on track to reach its current FY guidance and gradually gain
traction across several new application areas. Here are the key take aways:

Decent current trading. Hoenle looks set to report preliminary FY24/25
figures next week (final figures due on January 29th). For Q4, we expect
sales to come in at EUR 23.2m with and EBITDA of EUR 2.2m, ultimately meeting
the mid to upper ends of the company's FY guidance (EUR 92-94m sales and EUR
5-6m EBITDA) at EUR 93m (-5.8% yoy) and EUR 5.8m EBITDA, eNuW. In particular,
the implied margin of above 9% underpins the company's successful efforts to
right-size expenses but it also reflects the business' seasonality. The FY
margin looks set to improve by 3.1pp yoy to 6.2% despite challenging end
markets with cautious order behaviour, the key reason for the full year's
lower top line figure.

FY25/26 to return to growth. Despite ongoing uncertainties across the
group's key end markets, we expect Hoenle to grow sales by 8% yoy to roughly
EUR 100m next year. With this, the company would return to growth following
three consecutive years with a declining top line. This should be carried by
further improvements of the Disinfection business, which already grew 6%
during 9M 2024/25 thanks to good demand from several product groups,
including ballast water and food industry. Further, across the group new
product offerings, such as ultra-pure water (Disinfection), LED-based UV
curing, In-situ UV dosage measurement (both Curing) should continue to gain
traction.

At the same time, the EBITDA margin should also further improve (+1.2pp yoy
to 7.4%) thanks to an improving product mix, a better fix cost coverage and
the recent cost saving initiatives. However, this margin increase looks set
to be slower than we had initially expected (eNuW old: 9.9%) as Hoenle is
seen to face higher initial expenses (vs. our expectations) related to those
new products, e.g. R&D, sales, etc.

Importantly, the mid- to long-term prospects remain unchanged. Until
2029/30e, we expect the EBITDA margin to gradually increase to 15% with
sales of EUR 137m (6% CAGR).

Conclusion: Hoenle's mid-term prospects remain bright, carried by the
already ongoing strategic transformation. Mind you, the company already
successfully divested the unprofitable sun simulation business, reduced SG&A
expenses and is beginning to gain traction with new solutions. We hence
confirm our BUY rating with a new EUR 15 PT (old: EUR 16) based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=fc41bf5daaecbe078aabbf7288dccd92
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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2239370 03.12.2025 CET/CEST

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