| Revenues came in at € 40.83 million, compared to a value of € 49.69 million recorded at the end of 2021 (Pro-forma), and to the € 45.00 million estimated in our previous report. EBITDA was € 4.98 million, up 14.0% compared to € 4.37 million in the previous year (Pro-forma), and in line with our previous estimate of € 5.00 million. The EBITDA Margin, equal to 12.2%, was higher than the Pro-forma data for the previous year (8.8%) and our estimate (11.1%). Net Income was € 2.01 million (€ 2.47 million in FY21A*), slightly down on our previous estimate of € 2.45 million, mainly due to higher amortization. In light of the results published in the Annual Report for FY22A and of the extraordinary transaction with Palladio SpA (leasing of the business unit and sub-leasing of properties used for business purposes), we have adjusted our estimates for both the current year and for the coming years. In particular, we estimate FY23E Revenues of € 63.00 million, and an EBITDA of € 7.30 million, corresponding to a margin of 11.6%. In the following years, we expect Revenues to rise to € 94.00 million (CAGR 22Y-26E: 23.2%) in FY26E, with EBITDA equal to € 11.25 million (corresponding to a margin of 12.0%), up from € 4.98 million in FY22A (corresponding to an EBITDA Margin of 12.2%). We conducted our valuation of the equity value of G.M. Leather based on the DCF method. The DCF method (including, for prudential purposes, a specific risk of 2.50% in the calculation of the WACC) returned an equity value of € 73.6 million. The target price is € 6.55, BUY rating, and MEDIUM risk. |