| Revenues amounted to € 61.68 million, compared to € 39.41 million recorded at the end of 2022 (up 56.5%) for FAE Technology alone, and a consolidated figure of € 60.72 million. The FY23A figure came in higher than our previous estimate, equal to € 58.00 million. EBITDA, equal to € 6.38 million, increased substantially compared to the FY22A figure (€ 3.92 million), corresponding to an EBITDA margin of 9.8%, slightly up on the equivalent figure for 2022 of 9.7%. A consolidated EBITDA of € 6.37 million was recorded, corresponding to a margin of 10.0%. This FY23A figure was, in fact, in line with the estimate of our latest report (€ 6.35 million). EBIT amounted to € 5.15 million (with the consolidated figure at € 4.99 million), compared to € 3.14 million in FY22A. The FY23A result was in line with our expectation, which estimated a value of € 5.20 million. Net Income came in at € 3.42 million, marking an increase on the FY22A figure (€2.11 million), with the consolidated figure amounting to € 3.25 million. In light of the results published in the annual report for FY23A, we substantially confirm our estimates for both the current year and the following years. In particular, we estimate FY24E revenues of € 83.00 million, and an EBITDA of € 9.75 million, corresponding to a margin of 11.7%. In the following years, we expect turnover to reach € 108.50 million (CAGR 23A-26E: 20.7%) in FY26E, with EBITDA equal to € 14.25 million (corresponding to a margin of 13.1%), up from € 6.38 million in FY23A (corresponding to an EBITDA margin of 9.8%). 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 € 94.0 million. Using market multiples, the equity value of FAE Technology is € 80.3 million (including a 25.0% discount). The results give an average equity value of approximately € 87.2 million. The target price is € 5.00, with a BUY rating and MEDIUM risk. |