| Consolidated revenues as of June 30, 2024, amounted to € 4.68 million, a significant increase compared to € 1.42 million recorded in the first half of 2023 (+230.1%). The EBITDA for the period moved from a negative value (-€ 0.92 million) recorded in the previous year to a current positive value of € 1.39 million. EBIT followed the same positive trend, amounting to €0.90 million, net of amortization and depreciation of €0.49 million, compared to -€1.40 million in 1H23A. Net Income also improved from -€1.40 million in 1H23A to €0.88 million in 1H24A. In light of the half-year results, we confirm our estimates for both the current year and the coming years. In particular, we estimate a FY24E production value of € 10.00 million, with an EBITDA of € 4.40 million, corresponding to a margin of 44.0%. In the following years, we expect production value to grow up to € 19.10 million, with EBITDA of € 11.20 million, and a margin of 58.6%. These high margins are justified by the Company’s ability to extract value from NPL portfolios while minimizing structural costs. Additionally, this forecast takes into account the fact that resale and securitization operations do not entail significant costs, as the credits sold have already been previously processed. We conducted the equity value assessment of ISCC Fintech using both the DCF and Excess Return methods. The DCF method (which prudentially includes a specific risk of 2.5% in the WACC calculation) results in an equity value of €97.7 million. The equity value of ISCC Fintech using the Excess Return method is €84.2 million. This gives an average equity value of approximately €91.0 million. The target price is €7.05, with a BUY rating and MEDIUM risk. |