Appealing value chain generation
Given Newag's business model, it is worth noting that the company generates value added not only by integrating rolling stock’s components delivered by external suppliers, but also making its own sizable contribution to the design, production, service and maintenance of the rolling stock. The company's expertise in the area of control software development needs to be highlighted as well. We believe such a production value chain gives the company a market leverage and drives up the quality of end products.
Dividend policy
Newag has a history of sharing profits with shareholders long enough to expect such a policy to be maintained in the future. Given that the baseline scenario assumes that the financials are already bottoming out, we estimate that in the years 2023-25E Newag may pay out a total of approx. PLN47mn in dividends.
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