Original-Research: Rosenbauer International AG (von NuWays AG): BUY

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Original-Research: Rosenbauer International AG - from NuWays AG

Classification of NuWays AG to Rosenbauer International AG

Company Name: Rosenbauer International AG

ISIN: AT0000922554

Reason for the research: Update

Recommendation: BUY

from: 08.07.2024

Target price: EUR 50

Target price on sight of: 12 Monate

Last rating change:

Analyst: Christian Sandherr

Global warming drives demand in the firefighting industry

Topic: Global warming has caused a severe rise in natural disasters such as

floods, wildfires and storms in the last decades. The research institute

"Our World in Data" by the University of Oxford indicates an increase from

83 recorded natural disaster events in 1970 to 410 in 2023. This fuels the

demand for Rosenbauer's innovative firefighting solutions.

Wildfires require a different set of products: During recent years,

Rosenbauer has already launched a variety of products reared towards the

use in wildfires. This use case differs from operations in urban areas, as

the mission usually extends over a longer time frame and under extremely

high temperatures, increasing the physical burden for firefighters. For

instance, Rosenbauer offers the lightweight fire protection suit GAROS G10.

In addition to reduced weight, the suit offers optimized heat and moisture

dissipation. Another example is the FFFT 3500/100 firetruck, developed for

operations in forest fires. The truck has a weight-optimized

superstructure, which enables a good performance on the soft forest floor.

Early detection of wildfires: Rosenbauer has been cooperating with the

German Aerotech start-up OroraTech since the start of 2022 to detect

wildfires early using satellite systems. The aim of the strategic

partnership is to provide current and historical satellite data to

emergency services on the ground via the RDS Connected Command software.

Digital Solutions are part of Rosenbauer's Customer Service segment, which

has been responsible for 9.7% of total revenues in FY23 and recently

experienced a strong growth of 35% yoy in Q1 FY24.

Order intake remains strong: Order intake in Q1 2024 came in at EUR 362m, an

increase of 24% yoy supported by structural trends such as global warming

and the electrification of fire trucks. Furthermore, order backlog rose to

a record high of EUR 1.94bn, giving Rosenbauer enough fuel for future growth.

After the transition year FY23, we expect further profitability

improvements throughout FY24e thanks to (1) price increases which are

successively reflected in sales, (2) an improving supply chain, and (3)

internal efficiency measures.

Further, with the upcoming capital increase, the current balance sheet

issues should be resolved by the end of FY24e. As the supply chain

situation improves and order backlog reaching a record high, shares look

poised for a re-rating. BUY with an unchanged EUR 50.00 PT based on DCF.

You can download the research here:

http://www.more-ir.de/d/30155.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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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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