Märkte & Kurse

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Original-Research: 123fahrschule SE - from NuWays AG

24.07.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of 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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Classification of NuWays AG to 123fahrschule SE

     Company Name:               123fahrschule SE
     ISIN:                       DE000A2P4HL9

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       24.07.2024
     Target price:               EUR 7.20
     Last rating change:
     Analyst:                    Philipp Sennewald

Preliminary H1 in line with estimates / chg.

Yesterday, 123fahrschule released preliminary H1 sales and EBITDA figures,
which were in line with our expectations (click here for preview).

According to the release, H1 sales came in at EUR 11.0m (eNuW: EUR 11.1m),
implying a yoy growth of 5%. As anticipated, H1 EBITDA arrived slightly

softer compared to last year at EUR 0.1m (H1 '23: EUR 0.2m; eNuW: EUR 0.1m). Yet,

this was due to several accounting changes during the first half of the
year, making the yoy comparison less meaningful. The changes relate to (1)
optimizations in the accounting system, which improved accruals during the
year rather than once in December as well as (2) the write-off of customer
receivables at an accelerated rate following the streamlining of the
collection process. To allow for a better comparison, the company thus
provided an adjusted EBITDA figure of EUR 0.5m, implying a margin of 4.5%.
Thanks to the mentioned changes, the seasonally weaker December should show
efficiency improvements compared to previous years. Hence, we adjusted our
bottom-line estimates accordingly.

Besides the preliminary figures, the company also provided a target for FY
'24e, as management aims to achieve an EBITDA of EUR 0.5m (adjusted: EUR 1m),
which looks ambitious but achievable in our view (eNuW: EUR 0.4m EBITDA).

On top of this, management also provided a strategy update, stating the
intention to introduce additional locations to the cities of Berlin, Cologne
and Hamburg. According to the company, opening new stores in cities with
existing locations has proven to be the most efficient way to accelerate
growth and increase market share. In order to finance the expansion,
management is currently considering several options, including a further
cash capital increase of up to 10% of the existing share capital. Along with
the reintroduction of online theory lectures starting 2025 and the scaling
up of the driving simulator business, this should poise 123f for dynamic
top-line growth from 2025e onwards thanks to a significant increase of
driving instructor capacities.

Moreover, 123f's in-house driving instructor education centers should allow
for further organic growth, whereas the vast majority of competitor will
face succession problems in the coming years given the age structure of the
industry (avg. age around 55 years).

The stock remains a BUY with an unchanged PT of EUR 7.20 based on DCF.

You can download the research here: http://www.more-ir.de/d/30281.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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1952641 24.07.2024 CET/CEST

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