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: Kaufen from: 21.05.2024 Target price: EUR 50.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Christian Sandherr

Solid start into the year // record order backlog; chg. est.

Topic: Rosenbauer released solid Q1 figures with sales above but EBIT below our estimates. The demand for firefighting vehicles is unbroken supported by several structural trends, leading to a strong order intake and a new record high in order backlog.

Q1 sales grew by 17.7% yoy to EUR 226m (eNuW: EUR 215m) thanks to the company's strong order backlog of EUR 1.79bn at the end of FY23 and an average price increase of 8% yoy per fire truck delivered in Q1. On a regional level, growth in the Europe (+67% yoy to EUR 106m) and the Americas area (+6.0% yoy to EUR 80m) compensated for a weaker Asia-Pacific (-51% yoy to EUR 12.4m) and Middle East & Africa area (-9.0% yoy to EUR 17.1m).

EBIT improved by EUR 5.2m yoy to EUR 0.3m (eNuW: EUR 4.4m) backed by further stabilization of supply chains but also substantial price increases. The reported EBIT includes a negative one-off effect of EUR 2.3m due to the departure of a member of the Executive Board and the realization of a new banking agreement. The fact that EBIT in the first quarter was positive for the first time in two years, despite negative one-offs, underpins the successful operational turnaround of the company.

Unbroken strong demand. Q1 order intake stood at EUR 362m (+24% yoy), implying a book-to-bill ratio of 1.6x. Coupled with the strong demand during the past quarters and supply chain issues, the group's order backlog grew again to a new record high of EUR 1.94bn (+20% yoy). Rosenbauer intends to reduce the book-to-bill ratio to a level of 1x to decrease lead times and with that the implied risk in the order book of increases on the cost side like in FY21 & FY22.

FY guidance reiterated. For FY24e, management expects sales of EUR 1.2bn (+ 12.7% yoy) and an EBIT margin of 5%. While we are slightly more cautious (eNuW: Sales EUR 1.18bn, EBIT margin 4.7%), we expect further sequential improvements throughout FY24e after the transition year FY23. FY24e should benefit from (1) price increases which are successively reflected in sales (2) a further improving supply chain and (3) internal efficiency measures.

As the supply chain situation further improves and with a record high in order backlog, shares look poised for a re-rating. Reiterate BUY with an unchanged EUR 50.00 PT based on DCF.

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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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May 21, 2024 03:01 ET (07:01 GMT)