| Revenues came in at € 21.70 million in 1H23A, compared to € 21.53 million reported at the end of the first half-year of 2022, marking a slight growth of 0.8%. EBITDA for the first half of 2023, equal to € 3.02 million, saw an increase of 16.2%, compared to € 2.60 million in 1H22A. The EBITDA margin, equal to 13.9%, came in higher than the figure for the first half of 2022 (12.1%). EBIT stands at € 2.02 million, thus marking a growth of 2.9% compared to the € 1.97 million reported for 1H22A. Finally, the NFP rose from approximately € 15.39 million of debt in FY22A to € 21.49 million, also of debt, in 1H23A. In light of the publication of the 1H23A half-year results, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate a FY23E value of production of € 46.00 million, and an EBITDA of € 6.00 million, corresponding to a margin of 13.2%. In the following years, we expect the value of production to rise to € 70.00 million (CAGR 22A-26E: 13.4%) in FY26E, with EBITDA equal to € 9.35 million (corresponding to a margin of 13.5%), up from € 4.98 million in FY22A (corresponding to an EBITDA margin of 12.2%). On the balance sheet, however, we estimate an NFP for FY23E equal to € 21.98 million of debt. We conducted our valuation of the equity value of G.M. Leather based on the DCF method. The DCF method (including, for prudential purposes, a specific risk of 2.50% in the calculation of the WACC) returned an equity value of € 59.5 million. The target price is € 5.30, with a BUY rating, and MEDIUM risk. |