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

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 € 278m, +12% yoy (eNuW: € 273m; eCons: € 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 € 125m (eNuW: € 125m; eCons: € 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 € 4.7m (vs. eNuW: € 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 € 68m (eNuW: € 44m; H1'24: € 99m) implying 25% FCF margin, thanks to a strong CFO  of €  110m (eNuW: € 112m) and lower than expected, but still expanded CAPEX of € 42m (+222% yoy; eNuW: € 68m) due to the terminal 3 expansion. Given that FWAG expects > € 200m in CAPEX for FY'24e (H1'24: € 79m), the second half of the year should see higher CAPEX (eNuW: € 131m in H2) and thus a lower FCF (eNuW: € 52m in H2). Nevertheless, as of H1'24, net liquidity grew by 42% yoy to € 349m (eNuW: € 353m), showing that despite (1) a dividend payment of € 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 € 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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