| Revenue for the first half of 2024 amounts to € 44.21 million. Consolidated EBITDA as of June 30, 2024, stands at € 5.82 million, corresponding to an EBITDA margin of 13.0%. EBIT, after depreciation and amortization amounting to € 1.15 million, is € 4.67 million, with an EBIT margin of 10.4%. Net Income stands at € 3.04 million. Lastly, the NFP has increased from € 7.14 million at FY23A to € 8.34 million of debt as of 1H24A. In light of the results published in the half-year report for 1H24A, we are revising our estimates for both the current year and the upcoming years. Specifically, we estimate FY24E revenues to be € 77.00 million, with an EBITDA of € 8.15 million, corresponding to a margin of 10.5%. For the following years, we expect revenues to increase to € 108.50 million (CAGR 23A-27E: 15.6%) by FY27E, with EBITDA reaching € 13.05 million (corresponding to a margin of 12.0%), up from € 6.37 million in FY23A (with an EBITDA margin of 10.0%). We conducted our valuation of the equity value of FAE Technology 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 € 85.5 million. Using market multiples, the equity value of FAE Technology is € 83.6 million (including a 25.0% discount). The results give an average equity value of approximately € 84.5 million. The target price is € 4.80, with a BUY rating and MEDIUM risk. |