| In the consolidated financial statements for the year ended December 31, 2023, Redelfi reported sales revenues of € 10.74 million, almost tripling the 2022 balance sheet value of € 3.96 million. The value of production came in equal to € 10.91 million, up 141.6% from the total of € 4.51 million for the previous financial year. EBITDA for the period amounted to € 5.06 million, marking a growth of 296.7% compared to the figure as of December 31, 2022, which came in at € 1.68 million. EBIT, after amortization and depreciation of € 0.49 million, amounted to € 4.57 million, up from the FY22A value of € 1.14 million, and with an EBIT margin of 42.5%. Net Income was also positive, amounting to € 3.03 million. In light of the results published in the annual report for 2023, and the continuing trend along the lines of the 2023-2026 Business Plan, we can confirm our estimates for both the current year and the following years. In particular, we can confirm our expectation of an FY24E value of production of € 18.25 million, and EBITDA equal to € 6.65 million, corresponding to a margin of 36.7%. In the following years, we expect the value of production to reach € 34.85 million (CAGR FY23A – FY26E: 47.3%) in FY26E, with EBITDA equal to € 24.15 million (corresponding to a margin of 69.6%), up from € 5.06 million in FY23A (corresponding to an EBITDA margin of 47.0%). We conducted our evaluation of the equity value of Redelfi 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 € 95.8 million. Using market multiples, the equity value of Redelfi is € 98.8 million (including a 25.0% discount). The result is an average equity value of approximately € 97.3 million. The target price is € 11.50, with a BUY rating and MEDIUM risk. |