Original-Research: 123fahrschule SE (von NuWays AG): BUY

Einstufung von NuWays AG zu 123fahrschule SE

Unternehmen:	123fahrschule SE
ISIN:	DE000A2P4HL9
Anlass der Studie:	Update
Empfehlung:	BUY
seit:	19.02.2025
Kursziel:	EUR 7.20
Kursziel auf Sicht von:	12 months
Letzte Ratingänderung:
Analyst:	Philipp Sennewald

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
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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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