| The company reported a pro-forma value of production of € 54.72 million for 1H23A (compared to € 56.18 million for the 1H22A results). EBITDA for the period came in at € 10.63 million, in line with the data of 1H22A, with a margin of 19.4%. EBIT was € 8.85 million in 1H23A, thus recording a substantial breakeven compared to the first semester of the previous year, with an EBIT margin of 16.2%. Net Income was also positive and equal to € 5.82 million, -8.1% compared to June 30th, 2022 (€ 5,90 million). In light of the results published in the financial report for 1H23A, we have almost completly confirmed our estimates for both the current year and the coming years. In particular, we estimate a FY23E value of production of € 126.85 million, and an EBITDA of € 23.50 million, corresponding to a margin of 18.5%. In the following years, we expect the value of production to rise to € 163.40 million (CAGR 22Y-25E: 13.9%) in FY25E, with EBITDA equal to € 31.85 million (corresponding to a margin of 19.5%), up from € 19.59 million in FY22A (corresponding to an EBITDA margin of 17.7%). We conducted our valuation of the equity value of Reway Group based on the DCF methodology 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 € 271.5 million. Using market multiples, the equity value of Reway Group was calculated as € 190.5 million (including a 25.0% discount). The results give an average equity value of approximately € 231.0 million. The target price is € 6.00, with a BUY rating and MEDIUM risk. |