Märkte & Kurse

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Original-Research: Rosenbauer International AG - from NuWays AG

02.08.2024 / 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
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Classification of NuWays AG to Rosenbauer International AG

     Company Name:               Rosenbauer International AG
     ISIN:                       AT0000922554

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       02.08.2024
     Target price:               EUR 50.00
     Last rating change:
     Analyst:                    Christian Sandherr

Solid Q2 preview & positive cross read

Topic: Rosenbauer will release its half year report on August 9 th . We
expect the positive trend in topand bottom-line in the second quarter to
continue after a solid Q1.

Revenues are seen increasing 11% yoy to EUR 297m (eNuW) driven by (1) further
improvement in the supply chain, and (2) substantial price increases, which
are successively reflected in sales. This should also lead to a 1.8pp
increase in EBIT margin up to 3.9% (eNuW) and an EBIT of EUR 11.5m (+104%
yoy). We expect this positive trend to continue for the remainder of FY24e
and thus further improvements in profitability after the transition year
FY23 (eNuW EBIT margin FY24e: 4.7%; FY23: 3.5%; FY22: -1.1%).

We expect price increases to be responsible for c. 8% of sales increase in
the second quarter. Once Rosenbauer lifts its vehicle prices, it takes
usually 6-12 months to be reflected in the order intake. Hence, the price
increases in FY23 are now cooked into the order book, which had at the end
of Q1 a 20% higher average price per firetruck than in the previous year. As
a result, price increases should be the major contributor to sales growth in
the coming quarters, even if we don't expect further price increases in the
near term.

In addition to price increases, further growth should be supported by a
strong demand that shows up in solid order intake numbers (FY23: EUR 1.45bn;
+18% yoy) and is driven by structural trends such as climate change and
population ageing.

Positive cross read: Rosenbauer's largest competitor Pierce which belongs to
the American conglomerate Oshkosh, released on Wednesday evening its Q2
numbers. Revenues within the "Fire apparatus" segment came in at $ 355m, a
20% increase yoy thanks to a restored supply chain as well as price
increases. Order intake in "Vocational", which comprehends in addition to
"Fire apparatus", vehicles for refuse and recycling collection, continued to
be strong and increased 5.4% yoy (book-to-bill 1.01). Operating income in
Vocational came in at $ 107m (+ 76% yoy) with a solid margin increase of
2.3pp yoy. The positive development of Oshkosh Pierce gives us additional
confidence in the continuation of Rosenbauer's operating turnaround.

We reiterate BUY with an unchanged EUR 50.00 PT based on DCF

You can download the research here: http://www.more-ir.de/d/30349.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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1959569 02.08.2024 CET/CEST

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