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

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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: Upadte
Recommendation: Halten
from: 14.05.2024
Target price: EUR 58.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

Q1 preview: record top and bottom line ahead

Topic: FWAG's Q1 results are due on Thursday, May 16th and we expect solid
top-line growth and proportionate EBITDA growth, while EBIT and net income
should show disproportionate growth and should mark new record levels. In
detail:

Sales should grow by 17% yoy to EUR 212m (eCons: EUR 212m), driven by a
combination of passenger growth (+14% yoy on group level, + 11% yoy in
Vienna) and an increase in airport charges of 9.7% yoy (c. 40% of sales;
effective as of Jan'24).

Accordingly, EBITDA is seen to grow by 18% yoy to EUR 79m (37.4% margin;
eCons: EUR 79.5m) due to FWAG's low operating leverage with OPEX increasing
proportionate to sales by +16% yoy EUR 135m. While the largest part of OPEX
should stem from rising personnel costs (eNuW: EUR 90m, +18% yoy), FWAG
usually incurrs higher material costs (mostly energy costs and de-icing
liquids; eNuW: EUR 20m, +13% yoy) for its operations during winter.

Assuming constant D&A of EUR 34.4m (Q4'23: EUR 34.4m) EBIT should arrive at EUR
45m (+29% yoy; eCons: EUR 46m). Following the repayment of all of its debt in
Q4'23 coupled with a strong net cash position of EUR 362m , which yields
solid interest income, FWAG should report a positive financial result of EUR
3.7m, implying EBT to grow by 43% yoy to EUR 48m (eCons: EUR 48m). With our
effective tax rate estimate of 26%, net income before minorites should thus
arrive at EUR 36m (+43% yoy; eCons: EUR 36m). Noteworthy, figures mentioned
above would mark new all-time records for FWAG, highlighting its sound
operating turnaround after the COVID pandemic.

Futhermore, we expect a busy summer ahead, as the current summer flight
plan looks set to outperform even the busy summer from last year.
Therefore, Q2 and Q3 (FWAG's most important quarters) should also come in
well above last year. With the Q1 release FWAG will also publish Apr'24
traffic results, which we expect to come in at 3.4m (+6% yoy) passengers on
group level (2.59m in VIE; 0.78 in MAL; 0.04m in KSC) and kick off the busy
summer ahead (see p. 2 for FY'24e passenger development).

Albeit sound operating performance, FWAG's shares only show only a 16%
catch-up potential to our PT of EUR 58.00 (based on DCF). Thus, we reiterate
our HOLD recommendation, while on the other hand, existing investors should
continue to benefit from growing and stable dividends.

You can download the research here:
http://www.more-ir.de/d/29733.pdf
For additional information visit our website
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 Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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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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