EQUITY RESEARCH REPORT – DEEP MADE IN ITALY
This study focuses on the topic of Made in Italy, an expression that, thanks to the fame acquired in the last twenty years, represents a real brand all over the world that contains distinctive characteristics such as uniqueness, craftsmanship, originality, creativity, and attention to detail.
The study is divided into three chapters. In the first, we offer an overview of the Made in Italy, defined as a set of goods, transversal to a set of sectors, that the community at a global level considers closely connected to the identity of our country. The chapter investigates the value of the Made in Italy brand in the world, analyzing the latest market trends including the trend in the pre- and post-pandemic Covid-19 periods as well as the impact of the spread of the pandemic on the sector. The overview concludes by addressing the current phenomena of counterfeiting and Italian Sounding, highlighting the economic damage caused by them and proposing to Made in Italy companies some strategies to counteract them, or at least limit their spread.
The first introductory part is followed by a series of empirical analyses, set out in the second chapter, relating to the performance trends of companies classified as Made in Italy listed on the Euronext Growth Milan (“EGM”) market of the Italian Stock Exchange, with the aim of demonstrating what is set out in the first chapter. In particular, once a panel composed of 56 companies is identified and the trend of the Initial Public Offering activity of SMEs on the Euronext Growth Milan market in the 2018-2022 period is examined, a fundamental analysis is first conducted, focused on the identification and deepening of economic variables such as sales revenues and EBITDA of companies in the last two years, distinguishing between Made in Italy companies and other companies in the EGM list. Subsequently, an analysis of the market performance of the securities is carried out, observing the variation in the prices of the securities listed in the last two years with the aim of verifying and quantifying the greater value recognized by the market to the Made in Italy companies. Finally, the chapter presents an evaluation analysis, which consists of two sections; the first is aimed at investigating the value recognized by the market in terms of the potential growth of the share value expected by analysts, distinguishing between Made in Italy companies and other companies in the EGM list. The second section, through an analysis of the multiples of the Made in Italy sector panel and the listed companies belonging to the main European markets, aims to verify the existence of a possible different appreciation of the market for Italian excellence compared to the rest of Europe.
Finally, the third chapter introduces the concept of Deep Made in Italy as a new type of cluster composed of a set of companies characterized not only by the traditional peculiarities that distinguish those belonging to the Made in Italy sector but also by “character” aspects, such as the Italian genius, the way of doing business and their social and environmental impact on the country.Leggi il pdf