| Revenues amounted to € 40.90 million, in line with the end of 2022 figure of € 40.83 million, and slightly lower than the € 45.50 million estimated in our previous report. EBITDA, at € 6.18 million, saw a growth of 24.2% compared to the € 4.98 million of the previous year, in line with our previous estimate of € 6.18 million. The EBITDA margin, equal to 15.1%, was higher than both the previous year’s figure (12.2%) and our estimate (13.2%). EBIT, after depreciation and amortization of € 2.26 million (€ 1.68 million in FY22A), came in at € 3.92 million (€ 3.30 million in FY22A), compared to our estimate of € 3.80 million. Net Income stands at € 2.04 million (€ 2.01 million in FY22A), in line with the € 2.10 million of our previous estimate. In light of the results published in the FY23A annual report, we have adjusted our estimates for both the current and the following years. In particular, we now estimate FY24E Revenues of € 50.00 million, and an EBITDA of € 7.60 million, corresponding to a margin of 15.2%. In the following years, we expect Revenues to reach € 77.00 million (CAGR 23A-27E: 17.1%) in FY27E, with EBITDA equal to € 12.35 million (corresponding to a margin of 16.0%), up from € 6.18 million in FY23A (corresponding to an EBITDA margin of 15.1%). On the balance sheet, on the other hand, we have adjusted our previous NFP estimate for FY24E, arriving at a value of approximately € 22.44 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. |