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Original-Research: Warimpex Finanz- und Beteiligungs AG - from East Value

Research GmbH

03.09.2025 / 08:30 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.

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Classification of East Value Research GmbH to Warimpex Finanz- und

Beteiligungs AG

Company Name: Warimpex Finanz- und Beteiligungs AG

ISIN: AT0000827209

Reason for the research: Update

Recommendation: BUY

from: 03.09.2025

Target price: EUR 1.13

Target price on sight of: 12-Monaten

Last rating change:

Analyst: Adrian Kowollik

1. Warimpex' (WXF) H1/25 results were significantly above the previous year,

however still negative on net income level and below our expectations.

Positive was the achieved cost reduction and a generally strong occupancy

rate of the Polish and Hungarian office buildings (Mogilska 35, 41 & 43 in

Cracow - 100%, Red Tower in Lodz - 43%, Ogrodowa in Lodz - 81%, Erzsebet in

Budapest - 96%), while the lower occupancy of the fully-owned greet hotel in

Darmstadt mainly due to - in our view - cessation of payments from the city

of Darmstadt for lodging Ukrainian refugees negatively impacted results.

When it comes to the Mogilska 31 residential project in Cracow, for which

Warimpex expects to receive the building permit in autumn this year, we

estimate the potential total revenue from the sale of the planned 146

apartments (= est. PUM of 7,554 sqm) at c. PLN 122m/EUR 28.6m (we will

include the project in our estimates as soon as construction work starts).

Despite lower forecasts for 2025E, our 12-months PT for WXF's stock (50%

NNNAV, 50% peer group) goes up from EUR 1.12 to EUR 1.13 (upside of 126%)

due to a higher peer-group-based FV. We believe that after the building

permit has been granted WXF will book a valuation gain for Mogilska 31.

2. In H1/25, Warimpex generated revenues of EUR 10.2m (-1.2% y-o-y, thereof

66.1% from Poland), an EBITDA of EUR 622k (+47.4%) and a net income (excl.

one-offs) of EUR -3m (EUR -8.8m). The Investment properties segment

accounted for EUR 6.9m (+14.4% y-o-y, EBITDA margin of 44.8% vs. 22.3% in

H1/24), the Hotels segment for EUR 2.3m (-22.9%, -2.6% vs. 18.1%) and

Development & Services for EUR 1m (-24.1%, -242.6% vs. -111.8%). 5.1% lower

direct expenses y-o-y resulted in a higher gross margin (45.8% vs. 43.5% in

H1/24), which together with an improved net financial result (EUR -2.9m vs.

EUR -3.9m) following the repayment of debt also positively affected net

income. Net gearing (200.6%, 31/12/2024: 187%) and equity ratio (30.3% vs.

31.8%) further deteriorated, which is negative. However, the share of

short-term interest-bearing debt remained low (9.5% vs. 13.7%).

3. While after discussions with management we now believe that our previou

revenue and net income estimates for 2025E are no longer achievable, we

expect that EBIT will be higher due to a likely positive revaluation effect

related to the Mogilska 31 project. With unchanged estimates for

2026E-2027E, for 2025E we now forecast revenues of PLN 20.4m (prev. PLN

21.3m), an EBITDA PLN 1.7m (PLN 1.7m), EBIT of PLN 1.2m (PLN 60k) and net

income of PLN -4.8m (PLN -3m).

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=7837eed03e77010d096d02cf3be74753

For additional information visit our website: https://eastvalueresearch.com/

Contact for questions:

Adrian Kowollik

Tel. +49 30 20609082

Email: ak@eastvalueresearch.com

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2192326 03.09.2025 CET/CEST

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