Nabaltec: Q2 preview: Passed the trough, returning to growth - NuWays AG Research
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Nabaltec: Q2 preview: Passed the trough, returning to growth - NuWays AG Research

Nabaltec will publish its H1 figures on August 20. Following a soft Q1 (sales -2.7% yoy), management guided for a gradual return to revenue growth starting from Q2, driven by a broad- based demand pick-up. The release should hence serve as the first proof point for the implied acceleration (6.6-9.3% yoy growth required for the remainder of the year to reach the 4-6% FY guidance).

Q2 group sales are seen to increase 6.2% yoy to € 55m (eNuW), implying H1 sales of € 108m
(+1.6% yoy).

Attractive long-term set-up. Nabaltec is a globally leading player in the market for environmentally friendly flame retardants, which is driven by tight regulations and structurally growing demand, especially in the area of data centres. New products such as VH add additional growth levers. Despite the currently challenging specialty chemicals market, Nabaltec stands out with a strong balance sheet, still good margins and plenty of capacity (€ 300m revenue potential, eNuW) to be utilized during the mid- to long-term, not adequately reflected by the current valuation.

We confirm our BUY rating with an unchanged € 16 PT based on FCFY26e.
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