FY‘22 results were in-line with guidance, which the company raised back in November 2022 due to (1) a strong performance of Vecoplan and (2) favourable mix effects from high-margin medical project wins of MA micro. FY’22 sales rose by 17% yoy to € 402m (eNuW: € 420m), vs. guidance of € 400-440m and an initial outlook of € 360-420m. Vecoplan performed best, growing sales by 37% yoy to € 174m, driven by strong demand across end-markets Recycling / Waste and Wood / Biomass in the USA and Germany.

Elwema and bdtronic also showed a dynamic top-line development (see page two). For Elwema, this was driven by sound automotive demand in the USA, while bdtronic experienced strong demand for its dispensing technology, targeting end-markets eMobility, medical and telecom, amongst other.

FY‘22 group EBITDA rose disproportionately by 27% yoy to € 32.7m (eNuW: € 33.6m), vs. guidance of € 30-34m and an initial outlook of € 23-29m. The group‘s bottom-line mostly benefitted from MA micro winning high-margin medical projects. Consequently, the subsidiary‘s EBITDA soared by 62% yoy to € 11.2m despite muted top-line growth of only 3% yoy to € 64m. 

Elwema achieved the operational turnaround, growing FY’22 EBITDA to € 2.9m from € -0.4m a year ago, which reflects better fixed cost coverage amidst dynamic top-line growth and cost savings measures. The remaining subsidiaries mostly experienced margin deterioration due to input cost inflation, which was passed on to customers, leaving EBITDA unaffected but diluting profitability.

FY‘22 order intake came in basically flat yoy at € 425m, largely due to MA micro‘s high customer concentration and large ticket sizes, which tend to result in lumpy order intake. Accordingly, MA micro‘s bookings were down c. 74% yoy to € 21m, following a strong FY’21, as clients should be busy digesting the recent capacity additions. bdtronic, Elwema, and NSM showed excellent order intake on the back of automotive strength and secular trends such as eMobility, while Vecoplan’s bookings were flat yoy at € 171m as a cooling down period followed the strong investment activity seen in 2021.

For FY’23e, MAX guides for sales of € 410-470m, in line with eNuW (€ 451m), carried by a € 303m group backlog (+6% yoy) and a healthy order pipeline. FY‘23e EBITDA should improve further to € 35-41m,

- continued -

despite less favourable mix effects, as restructuring case iNDAT will be closed down. Mind you, the entity was responsible for negative EBITDA of € -8.4m in FY‘22e; for FY‘23e we expect a final burden of € -1m.

With the winding down of ailing subsidiary iNDAT and a much stronger balance sheet following the cap raise, MAX is turning from a restructuring case into a growth play, which should drive a re-rating. Slight est. changes mostly reflect a better financial result post capital raise. Reiterate BUY with an unchanged PT of € 6.50 (DCF).