| In the consolidated report as of June 30th, 2023, the Group reports consolidated revenues of € 33.14 million, up 9.3% compared to the 1H22A figure of € 30.31 million, confirming its growth path. EBITDA for the period amounted to € 2.76 million, marking an increase of 11.6% over the 1H22A figure of € 2.47 million and reporting a margin on value of production of 7.8%, in line with the previous year. EBIT, on the other hand, amounted to € 1.19 million, with EBIT Margin decreasing from 3.7% in 1H22A to the current 3.4%, due to a slight increase in D&A as a result of the investments made in the first part of the fiscal year. Net Income was also positive, € 0.43 million, up from the 1H22A figure of € 0.32 million. In light of the results published in the half-year report for 1H23A, we have adjusted our estimates for both the current year and the coming years. In particular, we estimate an FY23E value of production equal to € 65.50 million with EBITDA of € 5.20 million, corresponding to a margin of 7.9%, slightly decreasing from the previous expectations due to integration costs of new acquisitions, especially referring to new personnel. For the following years, we estimate value of production increasing to € 84.00 million (CAGR FY22A – FY25E: 11.4%) in FY25E, with EBITDA of € 8.40 million (margin of 10.0%), up from € 4.02 million in FY22A (margin of 6.6%). We conducted our valuation of the equity value of SolidWorld Group on the basis of the DCF method and multiples of a sample of comparable companies. The DCF method (which in the calculation of WACC also includes for prudential purposes a specific risk of 2.5%) returns an equity value of € 111.2 mln. The equity value using market multiples turns out to be € 85.4 mln (including a 25% discount). This results in an average equity value of approximately € 98.3 mln. The target price is € 7.00, BUY rating and MEDIUM risk. |