Original-Research: Flughafen Wien AG (von NuWays AG): HOLD
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Original-Research: Flughafen Wien AG - from NuWays AG
21.08.2024 / 09:02 CET/CEST
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Classification of NuWays AG to Flughafen Wien AG
Company Name: Flughafen Wien AG
ISIN: AT00000VIE62
Reason for the research: Update
Recommendation: HOLD
from: 21.08.2024
Target price: EUR 59.00
Last rating change:
Analyst: Henry Wendisch
Q2 review: sound results and upbeat cash generation
Topic: Yesterday, FWAG released sound Q2 results in which sales growth and
cash generation remained upbeat while EBITDA margins have reached cruising
altitude.In detail:
Sales came in at EUR 278m, +12% yoy (eNuW: EUR 273m; eCons: EUR 277m) mostly
driven by airport charges (+15% yoy; 43% of sales) but also by a strong
contribution of Malta (+12% yoy; 14% of sales).
EBITDA arrived in line with expectations at EUR 125m (eNuW: EUR 125m; eCons: EUR
124m), up 13% yoy with an almost constant margin of 45.1%, +0.5pp yoy, due
to low operating leverage. On a positive note, the segment 'Handling &
Security Services' surprised positively with a better than expected EBITDA
of EUR 4.7m (vs. eNuW: EUR 0.7m) due to a more favorable shift towards cargo
(YTD cargo volume: +18% yoy). - see p. 2 for details
FCF arrived better than expected at EUR 68m (eNuW: EUR 44m; H1'24: EUR 99m)
implying 25% FCF margin, thanks to a strong CFO of EUR 110m (eNuW: EUR 112m) and
lower than expected, but still expanded CAPEX of EUR 42m (+222% yoy; eNuW: EUR
68m) due to the terminal 3 expansion. Given that FWAG expects > EUR 200m in
CAPEX for FY'24e (H1'24: EUR 79m), the second half of the year should see
higher CAPEX (eNuW: EUR 131m in H2) and thus a lower FCF (eNuW: EUR 52m in H2).
Nevertheless, as of H1'24, net liquidity grew by 42% yoy to EUR 349m (eNuW: EUR
353m), showing that despite (1) a dividend payment of EUR 118m in Q2'24, (2)
complete debt repayment in Q4'23 and (3) the new CAPEX cycle, FWAG can
nonetheless expand its already strong net cash position.
Furterhmore, July passenger numbers were released and amounted to 4.4m
(+7.7% yoy) on group level, exceeding our expectation of 4.3m and implying a
YTD growth of +10% yoy which is on a similar level to European peers (see p.
2). Consequently, FWAG slightly raised its passenger guidance from 'around'
39m (3% yoy) to 'more than' 39m on group level (eNuW: 40.7m, +7% yoy), but
left the financial guidance unchanged which remains in line with our
estimates.
All in all, solid release. FWAG remains a highly cash generative,
monopolistic business with a healthy balance sheet, providing stable and
slightly growing dividends for mid- and longterm investors. Nevertheless, we
do not see share price triggers in the near-term and reiterate our HOLD
recommendation with unchanged PT of EUR 59.00, based on DCF. Get in touch with
management
You can download the research here: http://www.more-ir.de/d/30577.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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1971881 21.08.2024 CET/CEST
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