| The Company generated a value of production equal to € 14.86 million, a considerable increase (+ 662.2%) compared to the previous period, which closed with a value of € 1.95 million. This growth is the result of the acquisition of new orders made between the end of 2021 and the beginning of 2022 in Italy (EPC business unit) and abroad (System Integrator business unit) for the construction of mini-grid and photovoltaic plants commissioned by International Development Funds. EBITDA stood at € 0.78 million, showing significant growth compared to € 0.16 million in the previous fiscal year. The EBITDA margin, on the other hand, was equal to 5.3%. Net Income is also growing and equal to € 0,34 mln. In light of the results published in the half-yearly report for 1H22A, we modify our previous estimates both for the current year and for the coming years. In particular, we estimate FY22A value of production equal to € 25.50 million and EBITDA of € 2.30 million, corresponding to a marginality of 9.0%. For subsequent years, we expect the value of production to increase up to € 35.50 million (CAGR 21A-24E: 86.65%) in FY24E, with EBITDA of € 4.10 million (corresponding to an EBITDA margin of 11.5%), up from € 0.08 million in FY21A (corresponding to an EBITDA margin of 1.4%).We have conducted the valuation of ESI equity value based on the DCF methodology and market multiples of a comparable companies sample. The DCF method (which in the calculation of the WACC includes for prudential purposes a specific risk of 2.5%) provides an equity value of € 45.6 million. The equity value of ESI using market multiples is equal to € 24.3 million (with a 25% discount). The result is an average equity value of € 34.9 million. The target price is € 5.00 (prev. € 6,00 mln), BUY rating and MEDIUM risk. |