| In the half-yearly report as of June 30, 2024, the Company reported sales revenues of € 14.42 million and a production value of € 14.53 million, marking a growth of 44.5% compared to the same period in 2023, € 10.05 million. The growth in business activities is clearly reflected in EBITDA, which reached € 8.20 million in 1H24A, representing an increase of 58.7% compared to € 5.17 million in the same period last year, with an EBITDA margin of 56.4% (up from 51.4% in 2023). EBIT also improved, standing at € 8.04 million after depreciation and amortization of € 0.16 million, marking an increase of 58.2% compared to € 5.08 million in the first half of 2023. Consequently, the EBIT Margin rose from 50.6% in 2023 to 55.4% in 1H24A. In line with this trend, Net Income reached € 5.32 million, compared to € 3.46 million recorded in 1H23A. In light of the results published in the 2024 half-year report, we confirm our estimates for both the current year and the coming years, making slight adjustments. Specifically, we confirm the FY24E production value at € 31.00 million, while revising the EBITDA estimate to € 18.15 million, corresponding to a margin of 58.5%. For the following years, we expect the production value to increase to € 54.40 million (CAGR 23A-26E: 46.4%) in FY26E, with EBITDA reaching € 33.20 million (EBITDA margin of 61.0%), up from € 7.26 million in FY23A (EBITDA margin of 41.9%). On the balance sheet side, we expect the NFP to reach a cash-positive value of € 42.54 million in FY26E, which the Company will use to accelerate the development of its owned photovoltaic plants and the production and sale of electricity. We conducted our valuation of the equity value of Altea Green Power 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 € 278.8 million. Using market multiples, the equity value of Altea Green Power is € 216.4 million. The results give an average equity value of € 247.6 million. The target price is € 14.30 (prev. € 14.30). We confirm a BUY rating and MEDIUM risk. |