| In a press release dated 12 October 2023, the Company announced that it had finalised the acquisition of 100% of the capital of Abbrevia SpA, through the vehicle Bidco AML SpA, controlled by DigitalInfo Srl. The transaction is in line with the strategy of the holding company, which intends to invest in innovative SMEs with high profitability and in the consolidation phase, with the aim of increasing their value through internationalisation and market expansion, new product development and M&A transactions. Taking into account the acquisition of Abbrevia SpA on 12 October 2023, we adjust our estimates for both the current year and the coming years. Specifically, we estimate FY23E production value of € 13.05 mln and an EBITDA of € 2.20 mln, corresponding to a margin of 16.9%. For the following years, we expect value of production to increase to € 16.80 mln (CAGR 23E-25E: 13.5%) in FY25E, with EBITDA of € 3.80 mln (corresponding to a margin of 22.6%), up from € – 1.68 mln in FY22A. At the balance sheet level, we estimate a debt NFP of € 4.28 mln in FY25E. Please note that the FY23E-FY25E estimates derive from the consolidation of the majorities, acquired during 2023, of the companies Abbrevia and Audio Technologies. We conducted the valuation of the equity value of i-RFK on the basis of the “sum-of-parts” method, through the valuation and aggregation of the investee companies according to the method of market multiples, Book Value or Market Value. Taking into account the extraordinary acquisition of 100.0% of the capital of Abbrevia SpA, this results in an average equity value of approximately € 42.21 mln. The target price is € 3.50, BUY rating and risk MEDIUM. |