Original-Research: THE NAGA GROUP AG - from NuWays AG 20.08.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: THE NAGA GROUP AG - from NuWays AG

20.08.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to THE NAGA GROUP AG

     Company Name:                THE NAGA GROUP AG
     ISIN:                        DE000A161NR7

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        20.08.2025
     Target price:                EUR 1.10
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Frederik Jarchow

Growth momentum intact despite soft H1 figures

Last week, NAGA reported preliminary H1 figures that fell slightly short of
expectations on both, top- and bottom-line. In detail:

H1 sales came in at EUR 32.2m (+2% yoy), which is below our estimate of EUR
35.7m and should be driven by lower customer activity. No. of transactions
should have decreased to 3.8m (-5% yoy, eNuW) with an average revenue per
transaction that grew to EUR 8.50 (7% yoy, eNuW). Gross sales (sales after
execution and liquidity costs) increased to EUR 28.9m (+14% yoy, vs eNuW: EUR
30.5m)

H1 EBITDA stands at EUR 3.0m (+8% yoy) and hence lower than anticipated (eNuW:
EUR 4.0m), mainly due to lower topline. Positively, lower OPEX on the back of
higher efficiency and scale effects, partially compensated for the weaker
top-line.

After the transition year 2024 that was mainly characterized by integration,
automation and efficiency processes, the growth engine that was restarted in
early 2025 with measures such as the cooperation with BVB (Q4Ž24) and Mike
Tyson (Q1Ž25) is still sputtering a little. Nevertheless, we expects the
measures to bear fruit going forward resulting in an acceleration of growth
that should additionally be fueled by the assumed high marketing spendings
in H1 (eNuW: EUR 16.1m, +45% yoy). First effects should become visible in
higher H2 sales figures and exponential bottom line growth.

While management is still expecting top-line growth of 19% to EUR 74m in FY25
and another 32% to EUR 97.8m in FY26, we take a more conservative stance here
and slightly trimmed our estimates to EUR 70m in FY25 and EUR 79m in FY26
(eNuW). Thanks to expected further synergy, efficiency and scale effects,
management still expects EBITDA to increase to EUR 12.5m in FY25 and to EUR
27.6m in FY26, while we reduced our estimates to EUR 10m in FY25 and EUR 14.9m
in FY26. Keep in mind that even minor fluctuations of market volatility
could result in significantly higher revenues. That said, the topline
guidance is still in reach in our view, while the bottom line guidance looks
too ambitious.

We are convinced that the management took the right measures and see the
company on track to deliver further solid growth.

We reiterate BUY with a reduced PT of EUR 1.10 based on DCF.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=afa6526312913e5473c64733b655661d
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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2186120 20.08.2025 CET/CEST