| Revenues amounted to € 39.41 million, compared to a value of € 23.97 million recorded at the end of 2021 (+64.4%), and to the € 32.30 million estimated in our previous report. EBITDA, equal to € 3.92 million, recorded an increase of 52.5%, compared to the € 2.57 million of the previous year, and slightly down on our previous estimate of € 4.50 million. The EBITDA Margin, equal to 9.7%, came in lower than the figure of the previous year (10.5%) and of our estimate (13.5%). EBIT stands at € 3.14 million (€ 2.09 million in 2021), compared to our estimate of € 3.90 million. Net Income stands at € 2.11 million (€ 1.45 million in 2021), a slight decrease from the € 2.70 million of our previous estimate. In light of the results published in the FY22A annual report, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate an FY23E value of production equal to € 52.50 million, and an EBITDA equal to € 6.05 million, corresponding to a margin of 11.5%. In the following years, we expect the value of production to rise up to € 65.50 million (CAGR 22Y-25E: 17.6%) in FY25E, with EBITDA equal to € 8.30 million (corresponding to a margin of 12.7%), up from € 3.92 million in FY22A (corresponding to an EBITDA margin of 9.7%). We conducted our valuation of the equity value of FAE Technology based on the DCF method and on multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 65.7 million. Using market multiples, the equity value of FAE Technology is € 57.1 million (including a 25% discount). The result is an average equity value of approximately € 61.4 million. The target price is € 4.00, BUY rating and MEDIUM risk. |