Original-Research: Rosenbauer International (von NuWays AG): Kaufen
Source: EQSClassification of
Company
ISIN: AT0000922554
Reason for the research: Update
Recommendation: Kaufen
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
Refinancing agreement with lenders and capital increase
Topic: Rosenbauer reached a multilateral refinancing agreement with its major lenders and promissory note holders. Further, the Austrian vehicle manufacturer announced to be planning a capital increase of at least 3.4m shares to strengthen its balance sheet.
Successful refinancing: During FY23, Rosenbauer had difficulties meeting
its covenants of an equity ratio above 20% and a net debt to EBITDA ratio
below 6. At the end of 9M FY23, the equity ratio stood at 14.3% and the net
debt to EBITDA ratio at 15. The company now announced a refinancing
agreement, which runs until
Material capital increase: Rosenbauer intends to issue at least 3.4m new shares (50% increase) during 2024 to strengthen its balance sheet and paying bondholders. Assuming a 30% discount to yesterday’s closing price of € 27.60, potential gross proceeds could reach roughly € 66m. € 35m of the proceeds and additionally any excess cash in 2025 (cash sweep) shall be used for repayments.
Healthy operating business: Rosenbauer has largely overcome the challenging supply chain situation in FY22 & FY23 and showed a successive improvement in its profitability during FY23. The EBIT margin in Q1 came in at -2.6% and climbed to 2.1% in Q2, 4.4% in Q3 and 7.2% in the preliminary final quarter, which was seasonally the strongest quarter. Due to largely normalized chassis lead times and significant price increases from Rosenbauer, we expect an EBIT margin of 4.6% in FY24e (FY23: 3.5%). Further FY23 order intake increased 18% yoy to € 1.45bn, leading to a record high order backlog of € 1.79bn. Backed by restored profitability, continued strong demand and an improved supply chain, Rosenbauer should be able to deliver solid FY24e results (eNuW FY24e: Sales € 1.16bn/+8.6% yoy; EBIT € 53m/ +41% yoy).
Despite the high debt ratio and stock dilution, Rosenbauer’s operating business remains intact. The agreement with bondholders and the capital increase are necessary steps to secure the future financing of the company. Thus, the fact that the company has come to a solution with its bondholders can be interpreted as positive news flow. Reiterate BUY with an unchanged € 54.00 PT, based on DCF.
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