Encouraging top line with weak profitability, while Mobility outperforms

AutoWallis posted mixed Q3/24 results this morning. Quarterly revenues
increased by 9% on the year to HUF 96 bn, while 9M revenues are up
3.4% YoY. EBITDA came in at HUF 5 bn, while EBIT reached HUF 3.4 bn.
Results are in line with the dynamics seen in H1, however, below EBIT
level they are missing our current estimates (Concorde FY24 estimated
EPS: HUF 16.5 vs. 9M actual EPS: HUF 8.7). Depressed profitability is
partly due to the weaker performance of the Retail BU, where PBT came
in at only HUF 160 mn, surprisingly outperformed by the Mobility BU,
where PBT reached HUF 410 mn, turning profitable on this level for the
first time. Financial results dragged down earnings, and looking at the
current trend of the EURHUF, we expect another large FX loss in Q4.
Based on the lower profitability and the expected FX loss, we revised our
short-term estimates below EBIT level, changing our FY24 EPS forecast
to HUF 12.2. Nevertheless, we continue to believe in AutoWallis’ longterm strategy and since the changes in our estimates do not affect FCF,
we leave our 12m TP at HUF 230 and our recommendation on Buy.