Classification of East Value Research GmbH to Warimpex Finanz- und Beteiligungs AG
| Company Name: |
Warimpex Finanz- und Beteiligungs AG |
| ISIN: |
AT0000827209 |
| |
| Reason for the research: |
Update |
| Recommendation: |
BUY |
| from: |
03.09.2025 |
| Target price: |
EUR 1.13 |
| Target price on sight of: |
12-Monaten |
| Last rating change: |
|
| Analyst: |
Adrian Kowollik |
1. Warimpex’ (WXF) H1/25 results were significantly above the previous year, however still negative on net income level and below our expectations. Positive was the achieved cost reduction and a generally strong occupancy rate of the Polish and Hungarian office buildings (Mogilska 35, 41 & 43 in Cracow – 100%,
Red Tower in Lodz - 43%, Ogrodowa in Lodz – 81%, Erzsebet in
Budapest – 96%), while the lower occupancy of the fully-owned greet hotel in Darmstadt mainly due to – in our view – cessation of payments from the city of Darmstadt for lodging Ukrainian refugees negatively impacted results. When it comes to the Mogilska 31 residential project in Cracow, for which Warimpex expects to receive the building permit in autumn this year, we estimate the potential total revenue from the sale of the planned 146 apartments (= est. PUM of 7,554 sqm) at c. PLN
122m/EUR 28.6m (we will include the project in our estimates as soon as construction work starts). Despite lower forecasts for 2025E, our 12-months PT for WXF’s stock (50% NNNAV, 50% peer group) goes up from
EUR 1.12 to
EUR 1.13 (upside of 126%) due to a higher peer-group-based FV. We believe that after the building permit has been granted WXF will book a valuation gain for Mogilska 31.
2. In H1/25, Warimpex generated revenues of
EUR 10.2m (-1.2% y-o-y, thereof 66.1% from
Poland), an EBITDA of
EUR 622k (+47.4%) and a net income (excl. one-offs) of
EUR -3m (
EUR -8.8m). The Investment properties segment accounted for
EUR 6.9m (+14.4% y-o-y, EBITDA margin of 44.8% vs. 22.3% in H1/24), the Hotels segment for
EUR 2.3m (-22.9%, -2.6% vs. 18.1%) and Development & Services for
EUR 1m (-24.1%, -242.6% vs. -111.8%). 5.1% lower direct expenses y-o-y resulted in a higher gross margin (45.8% vs. 43.5% in H1/24), which together with an improved net financial result (
EUR -2.9m vs.
EUR -3.9m) following the repayment of debt also positively affected net income. Net gearing (200.6%, 31/12/2024: 187%) and equity ratio (30.3% vs. 31.8%) further deteriorated, which is negative. However, the share of short-term interest-bearing debt remained low (9.5% vs. 13.7%).
3. While after discussions with management we now believe that our previous revenue and net income estimates for 2025E are no longer achievable, we expect that EBIT will be higher due to a likely positive revaluation effect related to the Mogilska 31 project. With unchanged estimates for 2026E-2027E, for 2025E we now forecast revenues of PLN 20.4m (prev. PLN 21.3m), an EBITDA PLN 1.7m (PLN 1.7m), EBIT of PLN 1.2m (PLN 60k) and net income of PLN -4.8m (PLN -3m).
You can download the research here:
Warimpex_Update_03092025
For additional information visit our website:
https://eastvalueresearch.com/
Contact for questions:
Adrian KowollikTel. +49 30 20609082
Email:
ak@eastvalueresearch.com
