| In the half-yearly report of June 30th, 2023, the Group ended the year with revenues of € 1.42 million, a strong increase compared to the figure for the first half of fiscal year 2022, which amounted to € 0.79 million. EBITDA for the period was negative and amounted to -€ 0.92 million, compared to the previous year’s half-year figure of -€ 0.52, with a margin on value of production of -62.2% (vs -45.9% at 1H22A). EBIT, after depreciation and amortization of € 0.49 million, was -€ 1.40 million, down from -€ 1.17 million. Net Income was also negative at -€ 1.44 million (-€ 0.84 million as of 1H22A). In light of the results published in the half-year report for 1H23A, we confirm our estimates for both the current year and the coming years. Specifically, we estimate FY23E production value of €20.00 million and EBITDA of €15.30 million, corresponding to a margin of 76.5%. For subsequent years, we expect value of production to increase to € 45.00 million(CAGR 22A-25E: 110.3%) in FY25E, with EBITDA of € 37.80 million (corresponding to a marginality of 84.0%), up from € 0.95 million in FY22A (corresponding to an EBITDA margin of 19.7%). We conducted the equity value assessment of ISCC Fintech based on the DCF and Excess Return methodologies. The DCF method (which also includes a specific risk of 2.5% in the WACC calculation for prudential purposes) returns an equity value of € 152.8 million. The equity value of ISCC Fintech using the Excess Return method results in an equity value of € 105.1 million. This results in an average equity value of approximately € 129.0 million. The target price is € 10.00, BUY rating and MEDIUM risk. |