Original-Research: 123fahrschule SE (von NuWays AG)
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Original-Research: 123fahrschule SE - von NuWays AG
Einstufung von NuWays AG zu 123fahrschule SE
Fresh capital to fuel strong growth & market share gains; chg. Topic: On Monday evening, 123fahrschule (123f) announced the result of the issuance of the company’s convertible bond. In detail: 100% of the partial bonds offered have been subscribed by existing shareholders or placed with institutional investors at the subscription price of € 3.30. The convertible bond has a duration of 5 years and carries an interest rate of 7.5% per annum. The strike was set at € 3.30. As a result of the placement, 123f will receive gross proceeds of € 3.4m, which will be used to finance sales and earnings growth. In particular, it will be used for necessary investments in the upcoming introduction of legally recognized driver training on driving simulators and online education for theoretical driving license training. Mind you, those legislative changes will come into effect in Q1’26e. Until then, the company will need to adapt its existing branch network to online theory and simulator training. In addition, management recently presented project FIT (driving simulator integrated theory), which will enable large parts of theory and practical training to be shifted to the digital driving instructor in the simulator. The simulator will hereby take over 50% of the practical training and support the theoretical training. With this concept, the company aims to reduce up to 10 hours of learning time in the learning app, as what has been learned can be applied directly on the simulator. Total costs for the adaptation of the branch network and project FIT are estimated at € 3.75m. Moreover, 123f will offer students the chance to conduct the mandatory on-site theory lessons in two one-day seminars, which reduced the trips to the branch to two, thus allowing for a higher catchment area. Next to the time savings for the learner drivers, the inclusion of simulators into the education will allow 123f to offer the driving license class B (car) for up to € 1,000 less than conventional driving schools. Overall, this should enable the company to gain market share in its key regions (i.e. Berlin, Hamburg & Cologne), allowing for increased sales per branch, ultimately leading to significant economies of scale. -continued- Besides this, the company is already putting the proceeds from last year’s cash capital increase to use, as it signed 3 new locations to date. Management targets to add another 17 locations by July. With these new locations, the company will have completely covered the three main locations Berlin, Cologne and Hamburg. That said, 123f looks well on track to be the main beneficiary of the upcoming legislative changes, which soon should become visible via strong margin expansion and increasing returns. We reiterate BUY with an unchanged € 7.20 PT based on DCF. Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/31805.pdf Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: https://www.nuways-ag.com/research-feed Kontakt für Rückfragen: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++
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