| Revenues came in at € 27.31 million, up 57.0% compared to the figure for the first half of 2022, equal to € 17.40 million. EBITDA, equal to € 3.02 million, recorded a strong increase (+63.8%), compared to the 1H22A value of € 1.84 million. The EBITDA margin stands at 10.2%, remaining substantially in line with the first half of 2022. EBIT came in at € 2.48 million (€ 1.60 million in 1H22A), with an EBIT Margin of 8.4%, compared to 8.8% in 1H22A. Net income amounted to € 1.68 million, up from € 1.06 million in the first half of the previous year. In light of the published 1H23A half-year results, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate a FY23E value of production of € 58.35 million, and an EBITDA of € 6.35 million, corresponding to a margin of 10.9%. In the following years, we expect the value of production to rise to € 73.50 million (CAGR 22A-25E: 22.2%) in FY25E, with EBITDA equal to € 9.00 million (corresponding to a margin of 12.2%), up from € 3.92 million in FY22A (corresponding to an EBITDA margin of 9.7%). We conducted our valuation of the equity value of FAE Technology based on the DCF method and on multiples of a sample of comparable companies. The DCF method (including, for prudential purpose a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 70.6 million. Using market multiples, the equity value of FAE Technology is estimated at € 58.3 million (including a discount of 25%). The result is an average equity value of approximately € 64.5 million. The target price is € 4.20, with a BUY rating, and MEDIUM risk. |