INITIATION OF COVERAGE – 31.08.2023

E-Globe SpA is an Italian company, established by the Scilanga family and active, since 2009, in the value-added resale and marketing sector for innovative and eco-sustainable air-conditioning, heating and plumbing systems, appliances and accessories. The Company studies, designs and distributes air-conditioning, heating and renewable energy systems through its own platform, Climamarket.it, and its own store, in Cirò Marina (KR), Italy, diversifying its distribution channel with two main B2B and B2C sales models. Furthermore, E-Globe offers an integrated logistics service, from warehousing to installation at the customer’s premises, making use of a wide warehouse space in Cirò Marina and Longiano that guarantees the immediate availability of over 10,000 catalog items. The Company’s business is mainly focused on the marketing of products purchased directly from national and international original equipment manufacturers (OEMs) of air-conditioning, heating and plumbing systems and accessories, distributed through physical channels (the Cirò Marina own store) and online (the Climamarket.it own platform), with a clearly targeted marketing and service strategy.  E-Globe is a company active in the air-conditioning, heating and plumbing market, oriented in particular to the value-added resale and marketing of air-conditioning, boilers, biomass and renewable energy systems, accessories and services. The Italian air-conditioning market, in 2021, exceeded € 2.26 billion, recording a growth of 42.5% compared to 2020. The geographical breakdown of Italian turnover in 2021, in detail, saw the Lombardy region leading the market, with an incidence on the annual turnover of 20.1%, followed by Emilia-Romagna (11.2%), and then Veneto (10 .79%). Among the regions with the lowest contribution were Valle d’Aosta (0.2%), Molise (0.2%), and Basilicata (0.7%). Given the lack of companies comparable with E-Globe, we conducted the valuation of the Company’s equity value based solely on the DCF methodology. The equity value resulting from the application of the DCF method (which in the calculation of the WACC also includes a specific risk of 2.5% for prudential purposes) is € 62.5 million. Therefore, the target price is equal to € 3.50, rating BUY, risk MEDIUM.

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