| For the first half-year of 2023, the Group reported revenues of € 26.63 million, up 4.4% compared to 1H22A, equal to € 25.50 million. EBITDA amounted to € 4.96 million, marking a sharp rise from € 3.85 million in 1H22A (+28.8%). The EBITDA margin came in at 18.0%, compared to 15.0% in 1H22A. Adjusted EBIT amounted to € 3.37 million, showing strong growth compared to the € 1.67 million recorded in the first half-year of 2022. The Adjusted EBIT Margin was 12.7%, compared to a 1H22A value of 6.5%. Net income reached € 2.10 million, up 127.4% compared to the previous year’s figure of €0.92 million. The NFP went from € 7.85 million in FY22A to € 8.29 in 1H23A. In light of the results published in the 1H23A half-year report, we have partially adjusted our estimates for both the current year and the coming years. In particular, we estimate FY23E revenues of € 49.00 million, and an EBITDA of € 8.70 million, corresponding to a margin of 17.0%. In the following years, we expect revenues to reach € 54.00 million (CAGR 22A-25E: 3.6%) in FY25E, with EBITDA equal to € 10.30 million (corresponding to a margin of 18, 2%), up compared to € 7.56 million in FY22A (corresponding to an EBITDA margin of 15.1%). We conducted our valuation of the equity value of Marzocchi Pompe 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 € 66.4 million. Using market multiples, the equity value of Marzocchi Pompe was calculated to be € 57.9 million (including a 25% discount). The results give an average equity value of approximately € 62.1 million. The target price is € 9.50, with a BUY rating and MEDIUM risk. |