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:	15.11.2024
Target price:	EUR 61.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch

Q3 review: strong FCF despite CAPEX cycle

Topic: FWAG released solid Q3 results, in line with our estimates. Moreover, FCF remained upbeat despite the current CAPEX cycle kicked-off at the end of last year, highlighting the company's strong operative cash generation. In detail:

Q3 sales arrived at € 304m, +12% yoy (eNuW: € 306m; eCons: € 305m), particularly on the back of risen passenger numbers (+6% yoy) leading to an increase in airport charges by 11% yoy to € 130m (+43% of sales). Moreover, the Retail and Properties segment benefited disproportionately to passenger growth and expanded sales by 13% yoy to € 58m (19% of sales), followed also by a 13% increase to € 49m in Handling & Security (16% of sales). Elsewhere, the segment Malta also showed a strong passenger growth of 12% yoy which materialized in sales growth of 14% yoy to € 43m (14% of sales).

Q3 EBITDA came in 5% higher than last year at € 163m (eNuW: € 160m; eCons: € 165m), however at a slightly lower, but still very comfortable margin of 53.7%, -3.4pp yoy (9M: 46.5% margin, -1.0pp). In particular, the risen personnel expenses (+ 17% yoy to € 92m), but also other OPEX of € 46m (+43% yoy) contributed to the EBITDA expansion below sales growth.

The key highlight was a strong FCF. It increased by 77% yoy to € 99m (eNuW: € 42m; 9M: € 198m, -12% yoy), despite substantially higher CAPEX of € 45m, up 40% yoy (eNuW: € 75m). This stems from a superb CFO expansion by 63% yoy to € 144m (eNuW: € 117m; 9M: € 322m, up 13% yoy), which in turn was positively affected by € 40m reversals of provisions.

Consequently, net cash expanded by 46% yoy to € 435m (eNuW: € 390m) and should keep on building into FY'25e. Mind you, the company keeps on storing cash until a final decision on the 3rd runway is reached (eNuW: end of ’25 until mid ’26).

Moreover, October passenger numbers of 3.8m (+8% yoy) arrived in line with our expectation of 3.8m and show a solid start into Q4.

In sum, FWAG remains fully on track to deliver another record year. We regard the company as a highly stable dividend payer, but on the other hand, the shares seem to be valued accordingly, which is why we reiterate our HOLD recommendation with unchangend PT of € 61.00, based on DCF.

You can download the research here: http://www.more-ir.de/d/31327.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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