^ 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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Quelle: dpa-Afx