Market weakness weighs on profitability, outlook raises our TP
AutoWallis posted FY/24 results this morning. Revenues came perfectlyin line with our estimates at HUF 398.5 bn, increasing 8.8% YoY.
Profitability shrunk significantly last year, as the European automotive
industry struggled with weak demand globally. Despite this, earnings
came ahead of our estimates, as EBITDA reached HUF 20.2 bn (vs.
Concorde: HUF 18,7 bn), while EPS resulted in HUF 12,8 (vs. Concorde:
HUF 12,2). The difference is mainly due to the stronger Q4 results, which
makes us believe that earnings dynamics may pick up in 2025, as the
acquisitions carried out last year will start to significantly boost results.
We reviewed and updated our financial model, to better reflect the state
of the European market, while taking last year’s acquisitions into account.
Based on these changes, we reiterate our Buy recommendation and set
our 12m TP at HUF 235.
AutoWallis Nyrt Formerly known as Altera Vagyonkezelo Nyrt. AutoWallis Nyrt, formerly known as Altera Vagyonkezelo Nyrt, is a Hungary-based investment company, with a focus on the automotive sector. The Company is engaged in retail and wholesale trade, service, short and long-term car rental. The Company is active in Central and Southeast Europe.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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