Inbox: RCB kürzt Kursziel für KapschTrafficCom

Crucial contracts at risk: On December 8, 2017 the lower house of the Polish parliament approved an amended act on public roads which transfers duties related to collecting electronic fees from road authority GDDKia to state administration authority GITD. This means that Polish policymakers are aiming to nationalise it and have cancelled the tender for the prolongation of electronic toll collection services accordingly in recent days. Given this latest development in Poland we have now lowered our sales and earnings estimates for this contract from early 2019e onwards. At the same time, we now assume that Kapsch is likely to succeed in the upcoming tender for the prolongation of the Czech nationwide e-tolling operations business from 2020e.
 
Prospects of new businesses: Over the last four months the group won two remarkable contracts for the installation and operation of country-wide ITS systems in Bulgaria and Zambia. The biggest business opportunities for the group are currently offered in Germany, which decided to introduce a country-wide tolling system including enforcement for passenger vehicles in 2019. Moreover Germany is also tendering the huge nationwide truck tolling system for renewal for the first time since 2005. We assume that the decisions for all three German tenders will be made by the summer months and that they may create important news-flow and triggers for Kapsch.