Original-Research: ASMALLWORLD AG (von NuWays AG): Buy

Classification of NuWays AG to ASMALLWORLD AG

Company Name:	ASMALLWORLD AG
ISIN:	CH0404880129
Reason for the research:	Update
Recommendation:	Buy
from:	14.03.2025
Target price:	CHF 2.80
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch

FY'24 out, focus on member growth; chg. est & PT

Topic: ASW reported mixed FY'24 results and provided a guidance for FY'25e which is below market expectations due to the delayed launch of its rebranding and the free membership option. In detail:

FY'24 results weaker on sales, better on EBITDA. The completion of its business model transformation to a free membership and an expansion of offerings, has become visible in FY'24 results. Sales arrived
at CHF 20.9m, below expectations (eNuW: CHF 23.5m) and the ASW's guidance (CHF 23-25m) due to a delayed launch of the new brand and the free membership option in H2, which was originally intended
for early Q3 but launched in Nov'24 and led to less growth than expected. As this is only a periodic effect, FY'24 sales nevertheless declined slightly by 2% yoy (H2: -7% yoy). This goes hand in hand with a delayed marketing campaign, which was the reason why EBITDA came in at CHF 1.4m (6.6% margin, -3.2pp yoy), better than our estimate (eNuW: CHF 1m) and the guidance (CHF 1-1.2m).

Membership growth ahead of plan and with strong momentum. ASW reported 18k net additions to now 88.2k members, largely exceeding the guidance (73-74k) and our estimate (eNuW: 73.7k) following the free membership option launched in Nov'24. Despite it being delayed, the member intake has shown to be very successful. One of the companies main objectives is to scale the member base first and monetize them afterwards with their highly curated luxury travel offerings, such as hotel bookings, private community events, air mile plans & optimizations and bespoke travel services. However, at the expense of temporarily muted growth and profitability. Member intake seems to remain strong with ongoing momentum, as the company expects an additional 32-37k members during FY'25e, expanding the member base to 120-125k by Y/E'25e.

Guidance below expectation: Following the delay and with still additional services to be offered, it also needs some time for members to become acquainted with the community and ASW's services. Consequently, the monetization takes more time than expected, which is why ASW guides for 5-10% yoy sales growth and EBITDA expansion by 2-10% yoy, which is below our old estimates.

In sum, ASW's business transformation remains in full swing, however at a slower speed than initially anticipated. Consequently, we reduce our estimates, but maintain a positive view on the stock. BUY with new PT of CHF 2.80 (old: CHF 4.00), based on DCF.

You can download the research here: http://www.more-ir.de/d/31974.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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