Original-Research: Dr.

Original-Research: Dr. Hönle AG - from NuWays AG

12.08.2025 / 09:00 CET/CEST
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Classification of NuWays AG to Dr. Hönle AG

     Company Name:                Dr. Hönle AG
     ISIN:                        DE0005157101

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        12.08.2025
     Target price:                EUR 16.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Mixed Q3, FY guidance lowered but prospect remain attractive

Dr. Hönle reported Q3 figures, following a downward revision to their
full-year guidance earlier last week. The company's operations continue to
be burdened by weak demand across its key markets, particularly in adhesives
and curing systems. While internal measures are helping to stabilize
earnings, the top line remains under pressure due to delayed investments in
key customer industries. In detail:

Q3 revenue fell 5.5% yoy to EUR 22.4m on the back of weak Adhesives business
(-14.6% yoy to EUR 7.8m; Q1-3: -10.5% yoy to EUR 24.9m) as the unit struggled
with persistent weakness in the automotive sector and shifting Asian
electronics supply chains, which drove notable sales declines, delayed new
projects, and slowed development momentum.

Positively, Curing showed further stabilization with sales down only 0.6%
yoy to EUR 8.7m (Q1-3: -1.3% yoy) while Disinfection remained on a modest
growth path (Q3: +1.7% yoy to EUR 6.1m; Q1-3: +5.5% yoy). This reflects
restructuring measures in Curing, including a focus on core competencies,
discontinuation of unprofitable product lines such as solar simulation (~ EUR
2m sales p.a.), and cost reductions, while Disinfection benefited from
higher UV lamp and component sales, especially for ballast water systems.

EBITDA for the quarter came in at EUR 0.5m, down from EUR 1.4m last year (margin
-3.4pp yoy to 2.3%). The decline mainly reflects soft order intake, and
underutilization in parts of the business. This was particularly visible
within Adhesives, which recorded a 7.9pp margin decline to 6.9%. With higher
sales, the Disinfection margin climbed to 10.8% (+4.4pp yoy).

Net financial debt decreased further to EUR 42.7m (vs. EUR 46m at the end of Q3
2023/24) thanks to a solid operating cash flow (Q1-3: EUR 3.7m) on the back of
reduced working capital but also the sale of a non-core property (EUR 1.3m
proceeds). Worth highlighting, the majority of the financial debt (eNuW: EUR
30m running until mid 2038) is related to investments and loans for the
group's corporate buildings.

New FY24/25 guidance. Early last week, management already cut its guidance
to now EUR 92-94m sales (old: EUR 95-105m) and EBITDA of EUR 5-6m (old:
significantly higher than the adj. EBITDA of the previous year of EUR 5.5m) as
a result of the above described cautiousness across key end markets but also
FX headwinds.

Prospects remain promising. As outlined during the CMD at the beginning of
the year, Hönle targets EUR 175m sales and a 20-25% EBITDA margin by 2030
carried by the already ongoing strategic transformation, visible in the
divestment of the unprofitable sun simulation business, reduced SG&A and
more importantly new solutions gaining traction (e.g. first EUR 250-300k sales
of UV disinfection for ultra-pure water). For the time being, we remain more
cautious (eNuW: EUR 137m sales, 6% CAGR 2024/23-2029/30e with 15% EBITDA
margin)

BUY with a EUR 16 PT based on DCF.



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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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2182502 12.08.2025 CET/CEST