^

Original-Research: 123fahrschule SE - from NuWays AG

29.04.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to 123fahrschule SE

Company Name: 123fahrschule SE

ISIN: DE000A2P4HL9

Reason for the research: Update

Recommendation: BUY

from: 29.04.2025

Target price: EUR 7.90

Target price on sight of: 12 month

Last rating change:

Analyst: Philipp Sennewald

Superb preliminary Q1 sales and profitability

Topic: 123fahrschule provided strong Q1 preliminary figures, both on the

top- and bottom-line. In detail:

Q1 preliminary sales came in at EUR 6.6m, marking an 18% yoy improvement. Thi

was mainly driven by the Private Customer segment, where some of the newly

opened branches had a first positive impact. Notably, registration

increased substantially by 41% yoy in the first quarter, indicating strong

market share gains across key regions. In our view, this should bode well

for further strong growth in the coming quarters. This comes mainly on the

back of an improved marketing strategy, which was implemented during H2'24

including new hires.

Despite higher marketing spending, 123fahrschule was able to improve EBITDA

significantly to EUR 0.65m (Q1'24: EUR - 0.05m), implying a 9.8% margin. In our

view, this clearly underpins the operational improvements and scalability of

the business.

Important to note, the major simulator order (EUR 1m volume) that wa

communicated in January, is not yet reflected in the numbers, as delivery i

scheduled for Q2.

Against the backdrop of the strong Q1 prelims, management reiterated the

FY25 guidance of EUR 28-30m (eNuW: EUR 28.7m) in sales and EUR 1.5-2.5m (eNuW: EUR

2.5m) in EBITDA. In our view, the company looks well on track to achieve

those targets, especially after the strong first quarter of the year.

Taking a look beyond FY25e, 123fahrschule is poised for continuous strong

growth, which should be driven by the ongoing expansion of the branch

network as well as the new driving school legislation (re-introduction of

online-theory & inclusion of simulators into education plan), which is seen

to come into effect in Q1'26. Thanks to its scale, 123fahrschule should be

able to significantly capitalize on those changes in the form of an

increased catchment area as well as pricing advantages, which should allow

for market share gains. Moreover, 123fahrschule will be able to offer an

education with a much higher quality and convenience for students compared

to peers, making it the driving school of choice for upcoming learner

drivers.

Against this backdrop and the continuously undemanding valuation, we confirm

BUY with an unchanged PT of EUR 7.90 based on DCF.

You can download the research here: http://www.more-ir.de/d/32364.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

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 Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2125950 29.04.2025 CET/CEST

°