| Revenues amounted to € 49.75 million, up 2.5% from the FY22A value (€ 48.51 million) and our previous report’s estimate of € 49.00 million. EBITDA reached € 8.10 million, marking an increase of 7.2% compared to € 7.56 million in FY22A. The EBITDA margin was 16.3%, compared to a value of 15.6% for FY22A. Adjusted EBIT, after amortization and depreciation of € 3.04 million, amounted to € 5.06 million, up 39.9% compared to € 3.61 million in FY22A, and substantially in line with our estimate of € 5.55 million. Net income amounted to € 3.01 million, up 53.2% compared to the result of the previous year (€ 1.96 million). The NFP is equal to € 5.34 million, versus the € 7.85 million as of December 31, 2022. Based on the results published in the annual report for FY23A, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate FY24E revenues of € 46.00 million, and an EBITDA of € 6.45 million, corresponding to a margin of 14.0%. In the following years, we expect revenues to reach € 50.00 million in FY27E, with EBITDA equal to € 8.75 million (corresponding to a margin of 17.5%), up from € 8.10 million in FY23A (corresponding to an EBITDA margin of 16.3%). We conducted our valuation of the equity value of Marzocchi Pompe 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 € 69.2 million. Market multiples approach led to an equity value of Marzocchi Pompe of € 41.9 million (including a 25% discount). The result is an average equity value of approximately € 55.6 million. The target price is € 8.50, with a BUY rating, and MEDIUM risk. |