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

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Original-Research: Rosenbauer International AG - from NuWays AG

08.11.2024 / 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 Rosenbauer International AG

Company Name: Rosenbauer International AG

ISIN: AT0000922554

Reason for the research: Update

Recommendation: Buy

from: 08.11.2024

Target price: EUR 50.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Solid Q3 preview and positive cross read; chg. est.

Topic: Rosenbauer will release its Q3 report on November 15. We expect the

positive development after a strong H1 to continue.

Revenues are seen increasing 13.6% yoy to EUR 271m (eNuW) driven by (1)

largely restored supply chains, and (2) substantial price increases, which

are successively reflected in sales. This should also lead to a 0.8ppts

increase in EBIT margin up to a healthy 5.2% (eNuW) and an EBIT of EUR 14.1m

(% yoy). We expect this positive trend to continue for Q4'24e and thus a

further improvement in profitability for FY24e after the transition year

FY23 (eNuW EBIT margin FY24e: 5.2%; FY23: 3.5%; FY22: -1.1%).

Price increases should be a major growth driver: vehicle sales increased

14.8% yoy in H1, which includes a yoy price increase of c. 6%. We expect to

see a similar magnitude of price increases in Q3. Once Rosenbauer lifts its

vehicle prices, it takes usually 6-12 months to be reflected in the order

intake. Hence, the price increases in FY23 are now cooked into the order

book and should have a positive impact well into FY25e. Remind you, the

order book end of Q1'24 had a 20% higher average price per firetruck than in

the previous year. Consequently, price increases should be a major

contributor to sales growth in the coming quarters, even if we don't expect

Rosenbauer to raise its prices in the near term.

Demand expected to remain strong: in addition to price increases, further

growth should be supported by a strong demand that shows up in a solid order

intake (H1'24: EUR 744m; % yoy) and is driven by structural trends such as

increasing extreme weather events caused by climate change and the

electrification of fire trucks. With a record high in order backlog of EUR

2.02bn, Rosenbauer is set for continuous growth in the coming quarters.

Positive cross read: Rosenbauer's largest competitor Pierce which belongs to

the American conglomerate Oshkosh, released last week its Q3 numbers.

Revenue within the "Fire apparatus" segment came in at $ 340m, a 13%

increase yoy thanks to restored supply chains as well as price increases.

Operating income in Vocational came in at $ 100m (% yoy) with a solid

margin increase of 4.7ppts yoy due to improved price/cost dynamics. The

positive development of Oshkosh Pierce gives us additional confidence for

Rosenbauer's Q3 figures next week.

We reiterate BUY with an unchanged EUR 50.00 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/31229.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

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2025455 08.11.2024 CET/CEST

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