From tests to brands, revamping NanoRepro; INITIATE with BUY

The anchor asset is ZuhauseTEST, Germany’s broadest OTC rapid testing brand with 16 CE-certified products spanning fertility, infections and nutritional deficiencies, available across a large number of retailers such as Müller, Budni and COOP. It is a resilient, cash-generative business, operating in a market growing at a 12.4% CAGR in the OTC channel, backed since April 2025 by full IVDR certification, a meaningful regulatory moat. Building on such, NanoRepro is increasingly focusing on growing its white label customer base as seen with dm (Mivolis brand). The company is expected to pursue further partnerships with retail chains for similar white label offerings.

Sitting above ZuhauseTEST is a portfolio that most investors have not yet priced in. Paedi Protect AG (50.05% stake) is a € 11.7m (eNuW) revenue baby and family skincare brand with PETA certification, dermatological approval, and shelf space at dm, Rossmann, REWE, EDEKA and Globus. It consolidates into the NanoRepro group accounts for the first time in FY25, more than doubling group revenues at a stroke. Deutsche Kosmetikwerke AG (21.27% stake) brings the newkee active skincare brand, co-founded with Manuel Neuer and Angelique Kerber. hyped about science GmbH (33% stake) houses the Phlas cold plasma device, launched February 2026, a Max Planck Society-derived technology that treats acne and blemishes without chemicals, backed by clinical data and a digital treatment platform with recurring-revenue potential.

The investment case has three layers. First, a step-change in reported revenues as Paedi Protect consolidates, creating a group that looks nothing like what the current share price implies. Second, near-term catalysts, like Paedi Protect’s first summer under NanoRepro ownership and early Phlas device sell-through data both of which de-risks the case incrementally. Third, embedded option value in the hyped about science majority option: NanoRepro can acquire 50.001% for € 5.5m before the option lapses, at a 100% implied valuation of € 11m.

At a roughly € 20m market cap and net cash, investors are paying close to zero for Paedi Protect’s skincare revenues, nothing for the hyped about science option, and nothing for the embedded operational synergies to be realized across the group, in our view. We hence initiate NanoRepro with BUY and a price target of € 4.3 based on DCF.