Märkte & Kurse

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Original-Research: Flughafen Wien AG - from NuWays AG

13.08.2024 / 09:06 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 Flughafen Wien AG

     Company Name:               Flughafen Wien AG
     ISIN:                       AT00000VIE62

     Reason for the research:    Update
     Recommendation:             HOLD
     from:                       13.08.2024
     Target price:               EUR 59.00
     Last rating change:
     Analyst:                    Henry Wendisch

Q2 preview: Record top line and proportionate EBITDA growth

Topic: On Tueday, 20th Aug. 2024, FWAG will release Q2 results, which we
expect to come in strong and mark new records, showing a strong demand for
air travel in 2024 thus far.

Sales growth driven by price and pax inrease: Based on a rising demand for
air travel (Q2 group passengers: +8% yoy) coupled with the statutory
increase in airport charges (c. 40% of sales) of up to 9.7% yoy as of 1st
Jan. 2024, we consequently expect group sales to grow by 10.4% yoy to EUR 273m
(eCons: EUR 277m). In detail, we expect the segment 'Airport' to grow sales by
14% yoy driven by the effects mentioned above, followed by 'Malta' (eNuW:
+12% yoy to EUR 39m) driven by Q2 solid passenger growth in Malta of 14% yoy
and 'Retail and Properties' (eNuW: EUR 52m, + 9% yoy) which should have
capitalized on Vienna's passenger growth of 6% yoy in Q2.

EBITDA expansion to new records: Due to FWAG's business model with
relatively low operating leverage, we an expect an increase in OPEX (eNuW: +
8% yoy) largely in line with sales growth. Here, the largest cost item
should be personnel expenses (eNuW: + 12% yoy to EUR 103m) driven by a
seasonal increase of employees (eNuW: +6%) as well as wage inflation (eNuW:
+6%), but also material expenses (eNuW: +12% yoy to 12.6m) like energy,
materials and third-party services. Consequently, Q2 EBITDA should grow
proportionately to sales by 13% yoy to EUR 125m (eCons: EUR 124m), which should
mark another Q2 record. Here, the segments 'Airport' (eNuW: EUR 60m), 'Retail
and Properties' (eNuW: EUR 29m) and 'Malta' (eNuW: EUR 27m) should be the main
EBITDA drivers.

D&A higher due to CAPEX cycle: Following last year's start of the terminal 3
southern expansion, we expect a slight rise in D&A by 9% to EUR 36m.
Consequently, EBIT is seen at EUR 89m, +14% yoy.

Upbeat cash generation: Despite elevated CAPEX (eNuW: EUR 68m in Q2), FCF
should remain strong at EUR 44m for Q2 (i.e., EUR 75m in H1; 37% FCF/EBITDA),
according to our estimates. This highlights FWAG's strong ability to
generate cash even after CAPEX and dividends (EUR 111m; paid in Q2). Thus, we
expect the net liquidity to come in at EUR 353m (vs. EUR 362m per Y/E'23).

In sum, FWAG's remains an attractive stock to HOLD on, as its monopolistic
nature with continuous cash flows allows for steady and slightly growing
dividends going forward. But with only 14% upside to our PT of EUR 59.00
(based on DCF), we do not expect substantial share price reactions in the
near-term.

You can download the research here: http://www.more-ir.de/d/30439.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
++++++++++
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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1966371 13.08.2024 CET/CEST

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