GBC AG: Avemio AG | Rating: BUY

Classification of GBC AG to Avemio AG

Company Name:	Avemio AG
ISIN:	DE000A2LQ1P6
Reason for the research:	Research study (Anno)
Recommendation:	BUY
Target price:	15.00 EUR
Target price on sight of:	31.12.2026
Last rating change:
Analyst:	Cosmin Filker; Niklas Ripplinger

Transformation into a media technology group with a focus on high-margin digital revenues

AG suffered a decline in business development in the past financial year 2024. Sales fell by 11.4% to € 87.86 million (previous year: € 99.15 million). As a provider of customised solutions for the professional production of film, TV, and video content, the company in particular suffered from customers' continued reluctance to invest due to the economic situation. Furthermore, the manufacturers’ pace of innovation did not accelerate, which meant that customers of Avemio AG lacked incentives to buy.

Looking at the two segments, however, it can be stated that only the retail segment was responsible for the Group-wide decline in sales, with sales totalling € 78.8 million (previous year: € 96.1 million). In the higher-margin digital segment, the company benefited from the first full-year inclusion of sales from MoovIT/MSP, which was acquired in 2023, and reported a significant increase in sales to € 8.5 million (previous year: € 2.9 million). The acquired companies LEA/Infinment, which have been consolidated into Avemio AG since 1 August 2024, only contributed low inorganic growth with a revenue contribution of € 0.8 million.

The reduction in sales is also reflected in a decline in EBITDA to € -0.93 million (previous year: € -0.05 million). On the one hand, gross profit improved significantly due to the higher digital share, while on the other hand, personnel expenses increased due to the full-year inclusion of MoovIT. Avemio AG also reported a decline in earnings after taxes to € -6.54 million (previous year: € -3.45 million). This was largely due to goodwill amortisation with no effect on liquidity, which is recognised as scheduled in accordance with HGB accounting. As a result of M&A activity in recent years, goodwill amounted to € 21.17 million as at 31 December 2024, while total amortisation in the past financial year amounted to € 3.79 million.

For the current financial year 2025, the Avemio Executive Board expects a cautious reversal of the reluctance to invest on the customer side and anticipates growth momentum from the second half of the year in particular. The digital segment, on the other hand, should benefit from the launch of new products. The focus here is on the launch of Cara.One and helmut.cloud, which should also contribute to sales growth from the second half of the year on. Overall, the company anticipates slight sales growth. This should be accompanied by the effects of the cost-cutting programme, which is set to save € 1.5 million annually from 2026. Against this backdrop, EBITDA should already be positive again in the current financial year 2025.

Based on this, we expect sales to increase by 4.1% to € 91.50 million in 2025 and expect sales growth to accelerate in the coming financial years. We are assuming increasing momentum in the retail segment and anticipate strong sales growth in the digital segment. The increasing importance of the digital segment and the complete development of the cost-cutting programme should enable double-digit EBITDA margins again by the end of our forecast period (FY 2027).

As part of our DCF valuation model, we have determined a target price of € 15.00. Based on the current share price, we assign a 'BUY' rating.

You can download the research here: Research

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Disclosure of potential conflicts of interest pursuant to Section 85 WpHG and Art. 20 MAR The company analysed above has the following potential conflict of interest: (5a,7,11); A catalogue of potential conflicts of interest can be found at
https://www.gbc-ag.de/de/Offenlegung
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Date and time of completion of the study: 04.07.2025 (11:15 am)
Date and time of publication of the study: 07.07.2025 (10:00 am)