Original-Research: 123fahrschule SE (von NuWays AG): BUY

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Original-Research: 123fahrschule SE - from NuWays AG

26.03.2025 / 09:06 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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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: 26.03.2025

Target price: EUR 7.90

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Final FY EBITDA even ahead of prelims; Chg.

Topic: 123f released a strong set of FY24 results, where sales were slightly

lower but EBITDA ahead of the preliminary figures published in January. In

detail:

FY24 sales came in at EUR 22.5m (FY24p: EUR 22.8m), implying a 9.2% improvement

yoy. Sales were again driven by the Private Customers segment, were top-line

improved by 11.1% yoy to EUR 17.3m caused by both price and volume effects. On

the other hand, the Driving Instructor Training segment also saw a 9.5%

increase in sales to EUR 3.0m, while the Professional Driver Segment however

declined by 17.5% yoy to EUR 1.9m. The initial contribution from the Simulator

segment amounted to EUR 0.3m sales. Not considering the simulator business,

sales growth stood at 7.7%. Mind you, that during the first months of the

year, 123f received a significantly increased demand für simulators,

especially in the truck segment, leading to orders of already EUR 1m. For

FY25e, we thus estimate a strong increase to EUR 2.5m sales.

FY24 EBITDA turned positive for the first time, coming in at EUR 0.5m (FY24p:

EUR 0.4m), implying a 2.4% margin. In our view, this is clearly displaying the

ongoing operational improvements as well as scale effects starting to kick

in. The clear highlight of the release however, was the operating cash flow,

which came in at EUR 1.3m (FY23: EUR 0.4m), underpinning 123f's cash generation

ability.

Overall, the results fully underpin our positive view on the company. Going

forward, 123f is seen to substantially benefit from the upcoming regulation

changes (e.g. re-introduction of online theory & inclusion of simulators

into driving education). Besides this, the proceeds from the recent capital

measures are seen to also be used to expand the branch network. In fact,

management aims to increase to 70 branches until YE25 (57 as of FY24).

Against this backdrop, the company's guidance of EUR 27-29m sales looks well

in reach (eNuW new: EUR 28.7m). So does the EBITDA guidance of EUR 1.5-2.5m

(eNuW new: EUR 2.3m), especially given the strong simulator business, which is

characterized by higher margins.

In light of this, the current valuation continues to appear undemanding

given an FY25e EV/EBITDA of 7.1x (FY26e: 3.1x). We hence reiterate BUY with

an increased PT of EUR 7.90 (old: EUR 7.20) based on DCF.

You can download the research here: http://www.more-ir.de/d/32058.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2106402 26.03.2025 CET/CEST

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