| In the half year results as of June 30, 2023, NVP reported revenues of € 12.74 million, marking a clear increase compared to the 1H22A result of € 8.18 million (+55.7%). EBITDA, consequently, rose by € 3.71 million, up 21.4% compared to € 3.06 million in 1H22A, with an EBITDA Margin of 29.2%. EBIT came in equal to € 1.69 million, up 229.4% compared to € 0.51 million in 1H22A. Net Income was also positive, amounting to € 0.39 million. In light of the 1H23A half-year results, we have slightly adjusted our estimates for both the current year and the coming years. In particular, we estimate an FY23E value of production of € 26.50 million, with an EBITDA of € 8.00 million, corresponding to a margin of 32.7%. In the following years, we expect the value of production to rise to € 35.00 in FY25E, with EBITDA equal to € 11.55 million (corresponding to an EBITDA Margin of 35.0%), up from € 5.61 million in FY22A (corresponding to an EBITDA Margin of 32.2%). We conducted our valuation of the equity value of NVP based on the DCF method and 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 € 73.1 million. Using market multiples, the equity value of NVP is € 46.2 million (including a 25.0% discount). The results give an average equity value of approximately € 59.6 million. The target price is € 7.85, with a BUY rating, and MEDIUM risk. |