Topic: With 26.2bn assets under administration (AuA) and € 3.3bn assets under management (AuM), Netfonds reached new record levels being well above our estimates. In detail:

Steep growth trajectory to continue. With an absolute growth of € 2.6bn in AuA YTD (+10%; 15% yoy) to € 26.2bn in Q2, Netfonds is well above our estimates of € 25.7bn and should easily reach our estimates for FY24 of € 27bn. Even better, the high margin AuM increased to € 3.3bn end of Q2 (20% YTD; 18% yoy), in line with our estimates for Q2 of € 3.2bn and on track for the anticipated € 4.0bn in FY24.

Strong H1 figures ahead: After the record Q1 figures with AuA of € 25.1bn and gross sales of € 56m Netfonds hit new all-time highs in Q2 and should also have continued its sales growth additionally fueled by 1) value accretive smaller transactions (i.e. MFK and Comfort Finance) for very reasonable prices (eNuW: 4-8x EBITDA) for its advisor network VB-Select, 2) the initiation of an own money market fund with already above € 75m end of Q2 and 3) the acquisition of an umbrella in Luxembourg. We conservatively expect € 56m in gross sales (20% yoy), € 10.5m in net sales (10% qoq, 9% yoy) and € 1.6m in EBITDA (78% qoq; 10% yoy). Q2 figures should come out end of August.

Consolidation of the insurance brokerage market in full swing. Apart from the strong operating performance, the Groups proprietary, 360° finfire platform is seen to fuel the market consolidation especially in the insurance broker market that is, in contrary to the investment adviser market, still highly fragmented. Thanks to finfire, the selling and managing of insurance products is much easier, unlocking enormous cross-selling potentials, as the already onboarded investment adviser can additionally offer a wide range of insurance products to its customers. finfire hence remains the company´s key mid- to long-term growth and scalability driver. The expected strong organic growth momentum is seen to be accompanied by further value-accretive M&A deals that should come at very reasonable prices.

Overall, we see Netfonds well on track to reach its mid-term target of € 59m net sales (vs eNuW: € 59m) and € 23m EBITDA (vs eNuW: € 20m) by FY26.

BUY with an unchanged PT of € 74.00, based on DCF.