| In the press release dated October 14th, 2024, Vimi Fasteners SpA, the parent company of the VIMI Group, a leader in the design and production of high-engineering fastening systems for the industrial, automotive, oil & gas, aerospace, and other sectors, listed on the Euronext Growth Milan multilateral trading system, shared its consolidated data on sales revenue and NFP as of September 30th. Revenues for the first nine months of the year amounted to € 43.10 million, marking a -3.6% decline compared to the consolidated figure for the previous year, which was € 44.66 million. The percentage change compared to 2023 aligns with the results from the half-year data approved at the end of September, which showed a slight drop in sales volumes due to a slowdown in industrial and automotive production in Europe, especially in Germany. However, the Group’s resilience, evident in its effective geographic and product diversification, has helped minimize exposure to these dynamics and sustain its revenue even in challenging macroeconomic conditions. The quarterly figure aligns with the year-end forecast shared in the last report, which projected revenues of € 59.50 million. However, we see a reduction in the backlog, decreasing from € 25.19 million as of September 30th, 2023, to € 18.94 million in 2024. This is attributed to a shift in industry operators’ preference for short-term, well-defined orders over medium- to long-term planning, in order to optimize stock management. The NFP for the period, € 22.33 million, remains in line with the half-year figure of € 22.04 million and represents an improvement compared to the previous year’s figure of € 23.88 million. The figure includes € 3.71 million from the accounting of lease and rental contracts under IFRS 16 and € 3.70 million related to the outstanding payment to the sellers for the acquisition of Filostamp Srl. The results for 3Q suggest that Vimi Fasteners is effectively navigating a complex economic environment, maintaining revenue levels despite exposure to European markets, thanks to contributions from its subsidiaries and activity in new markets. While awaiting further developments in macroeconomic conditions and business performance in the coming months, we confirm our recommendation: target price € 2.75, BUY rating, and Medium risk. |