Original-Research: Flughafen Wien AG (von NuWays AG): HOLD

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Original-Research: Flughafen Wien AG - from NuWays AG

Classification of NuWays AG to Flughafen Wien AG

Company Name: Flughafen Wien AG
ISIN: AT00000VIE62

Reason for the research: Update
Recommendation: HOLD
from: 14.03.2024
Target price: 58.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

Upbeat traffic results - demand for air travel remains strong; chg.

Topic: Yesterday, FWAG released better-than-expected Feb'24 traffic results
showing that air travel demand remains unbroken.

Last month, Group passengers rose by a strong 18% yoy to 2.38m passengers
(eNuW: 2.21m). While Vienna grew strongly by 17% yoy to 1.88m passengers
(eNuW: 1.75m), strong growth was also maintained at Malta (+25% yoy). This
strong growth is partly attributable to the additional leap day on Feb 29
(i.e. additional 0.08m passengers for Feb'24; +14% yoy excl. the leap day),
but the general trend of growing air travel remains fully intact, also
witnessed by the peer group. (see p. 2 for details)

Unbroken demand meets growing supply: With inflation easing down in Austria
(4.3% in Feb'24; lowest figure since Dec'21) and nominal wage increases of
7.6% in FY'24e (Source: Statista), the subsequent increase in disposable
income should lead to unbroken demand for leisure travel, especially in the
upcoming summer. Moreover, the post-COVID recovery of physical meetings,
conventions & exhibitions is ongoing, thus leading to increased demand for
business travel, particularly in Vienna (Europe's #2 for conventions, 237
international companies' HQs & international organizations such as OPEC,
UN, OSCE, etc.). As a result, the airlines receive increased bookings and
respond by increasing supply, but also by continously increasing aircraft
utilization (i.e., seat-load-factor).

Rising airport charges: On top of the continuous growth of passengers, FWAG
can rely on the statutory increase of airport charges by 9.7% yoy,
effective as of Jan'24. Hence, we estimate Q1'24e passenger and aircraft
fees to increase by 20% yoy to EUR 85m, making up c. 42% of Group sales.

Strong Q1'24e ahead: The above-mentioned effects should lead to a strong
first quarter. We expect sales of EUR 210m (+17% yoy) with an EBITDA of EUR 86m
(41% EBITDA margin, +3.9pp yoy), based on Q1'24e group passengers of 7.51m
(eNuW; +13% yoy). Further down the road, Q2 & Q3'24e's top line should come
in even stronger, as the current summer flight plan as well as airline
booking data indicate an even better summer than last year.

Against this backdrop, we stick to our HOLD recommendation but raise our PT
of EUR 58.00 (old: EUR 57.00, based on DCF), as the company's stellar
operations are well reflected in its current valuation.

You can download the research here:
http://www.more-ir.de/d/29153.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.
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 Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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-------------------transmitted by EQS Group AG.-------------------

The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.

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