Challenges remain, margins in focus

We cut our TP to HUF 200 and reiterate our Buy recommendation
on AutoWallis as we forecast margins to remain depressed in 2025. Top-line
growth supported by acquisitions remains solid, as revenues came in at HUF
128bn (+20.9% YoY). However, margin pressures remain, as transaction
costs and the pricing power of the OEMs weigh on profitability. Quarterly
EBITDA increased by 14% YoY to HUF 4.8bn compared to the low base of
Q2/24, while EPS came in at HUF 3.38, down -2.5% on the year. The
company sold 14,500 vehicles in Q2 and a total of 26,314 vehicles in H1.
Distribution revenues increased by 2.7% YoY to HUF 62.8bn, while volumes
decreased by -2.5%. The BU’s EBITDA margin came in at 2.7%.
Retail revenues nearly matched the Distribution BU, coming in at HUF 62.8bn,
up by 46.4% YoY. Margins slightly recovered within the Retail segment in Q2,
with EBITDA margin reaching 3.2%.
Mobility efficiency further increased as Sixt boosted earnings. EBITDA came
in at HUF 1.1bn while PBT reached positive figures again at HUF 45mn