Original-Research: CEOTRONICS AG (von NuWays AG): BUY

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Original-Research: CEOTRONICS AG - from NuWays AG

04.11.2026 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to CEOTRONICS AG

Company Name: CEOTRONICS AG

ISIN: DE0005407407

Reason for the research: Initiation

Recommendation: BUY

Target price: EUR 17

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

The upside signal is loud and clear; INITIATE with BUY

CEOTRONICS has already delivered what investors pay a premium for elsewhere

in defence: 23% historical sales CAGR and a 21% EBITDA margin, close to

INVISIO's 22%. SmG-related orders of c. EUR 103m have turned a longstanding

Bundeswehr relationship into business at scale. CT-ComLink helps protect

that position: software updates let users retain their control units as

radios and headsets evolve. Backlog of EUR 77.6m covers 1.4x annual sales, the

strongest coverage among its direct peers. The next stage of growth comes at

a substantial valuation discount.

The next SmG order alone could exceed last year's sales. Our base case is a

single call-off of the remaining 81k systems within the next six months. At

EUR 58-76m (eNuW), this would exceed FY 25/26 sales of EUR 56.3m and support

deliveries into FY 30/31, before any programme expansion. Phased call-offs

remain possible and would leave total order potential and delivery timing

unchanged, in our view.

The current SmG framework falls short of the Bundeswehr's longer-term

equipment needs. Its 191k systems broadly match today's active force.

Equipment reserves, reservists and planned personnel expansion all create

additional requirements. Germany is already ordering for a larger force:

>700k helmets and 351k protective vests demonstrate the scale of procurement

across other categories of personal equipment. We expect an expanded SmG

framework covering at least 261k systems in total (an additional 70,000

systems), supported by equipment reserves alone, before allowing for

additional soldiers or reservists (total order potential: c. 644,000

systems, eNuW).

The Bundeswehr is also a reference that travels. International sales grew at

a 41% CAGR from FY 23/24 to FY 25/26 to EUR 12.3m, nearly doubling in two

years. Broad Bundeswehr deployment should strengthen CEOTRONICS' credentials

in further European tenders. Its growing presence in air defence highlights

the potential to expand into communication systems for vehicles, ships and

aircraft. The opportunity is expanding across both customers and

applications, in our view.

The valuation has room to catch up. At c. 7x EV/EBIT, CEOTRONICS trades

against 17x for INVISIO and 12x for Savox (2027e; eNuW calculated). Our

forecasts imply 13.5% annual EBIT growth to EUR 12m by FY 28/29. Strong order

coverage and competitive profitability make this discount look excessive, in

our view, while further SmG expansion and vehicle programmes offer

additional potential.

A soft H1 could provide a misleading first impression. While H1 results are

likely to look weak against a demanding prior-year comparison, third-batch

SmG deliveries should drive a stronger H2. In fact, the FY 26/27 net profit

guidance looks conservative: our EUR 6.8m estimate is c. 10% above guidance of

EUR 6.2m, despite allowances for relocation and ramp-up costs. The

non-recurrence of last year's impairment charges provides further support.

The next major order and a potential guidance upgrade are catalysts for the

valuation to catch up.

INITIATE with BUY, with a PT of EUR 17, based on DCF.

You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=5448b2d9de01347bbf4d4eb1da39a01d

For additional information visit our website:

https://www.nuways-ag.com/research

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 Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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