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

Classification of NuWays AG to ASMALLWORLD AG

Company Name:	ASMALLWORLD AG
ISIN:	CH0404880129
Reason for the research:	Update
Recommendation:	BUY
Target price:	CHF 2
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

FY25 figures out, new CEO driving transformation; chg. FY25 sales reached CHF 19.1m, down 9% yoy due to the absence of significant one-off sales generated from low-margin event-related activities; Services business -38% yoy to CHF 3.8m while Subscription sales were up 4% to CHF 15.2m thanks to the growing number of paying members despite the introduction of free entry membership. A refocus on profitable services (margin over sales) further impacted the group’s top-line development. EBITDA amounted to CHF 0.9m, broadly in line with guidance. The absolute number is down from CHF 1.4m in 2024. Cost discipline was real: the company conducted a comprehensive review of its activities, exiting non-core and unprofitable projects and streamlining its organisational structure, which also resulted in headcount reductions to lower the operating cost base going into 2026. Related one-off expenses amounted to roughly CHF 0.4m. Beyond the numbers, two strategic pillars stand out. First, B2B distribution: new airline partnerships with Cathay Pacific and Turkish Airlines were added alongside a global alliance with Klarna, which now integrates ASW to provide curated travel and lifestyle benefits to its cardholder and membership offerings. These deals are meaningful because they address ASW's historically high cost of member acquisition by embedding the brand within existing high-affinity ecosystems. Second, ASW launched a multi-year data and AI transformation programme focused on enabling more efficient, data-driven operations, supporting more targeted member acquisition, engagement and cross-selling but also driving cost efficiencies. Strengthened community engagement. 952 events were hosted worldwide in 2025 versus 864 in 2024 and the ASW Collection hotel booking platform grew to nearly 1,800 hotels globally with member bookings up over 15%. Improved balance sheet. The company reduced debt by 25%, to CHF 2.4m. Over two years, ASW has now eliminated the vast majority of its legacy debt burden. With a lean balance sheet and a tighter cost structure, ASW is heading into 2026. FY26 outlook. Management's FY26 guidance is notably conservative and signals a deliberate pivot from growth-at-any-cost to profitable monetisation. Memberships are expected to reach 135-140k, an increase of 12-15%, while total revenue is projected at CHF 17.5-19.5m, flat to down yoy. EBITDA is guided at CHF 0.9-1.1 million suggesting margin stability as cost reductions offset continued investment. All in all, new CEO seems to tackle the right levers to foster a sustainable turnaround in growth and profitability. Against this backdrop, we reiterate BUY with a new PT of CHF 2.00 (old: CHF 2.50), based on DCF. - change of analyst - You can download the research here: asmallworld-ag-2026-04-08-previewreview-en-abff6 For additional information visit our website: https://www.nuways-ag.com/research-feed 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 ++++++++++ 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. ++++++++++