| In the consolidated report as of June 30th, 2023, the Group reported consolidated revenues of € 33.22 million, marking a decrease of 26.1% compared to the 1H22A figure, equal to € 45.17 million. EBITDA for the period amounted to € 0.64 million, compared to the 1H22A figure equal to € 2.77 million, reporting a margin on the value of production equal to 1.9%, lower than in the first half of the previous year (6.1%).EBIT amounted to € 0.09 million, compared to a figure of 1H22A equal to € 2.19 million. Net Income was -€ 0.44 million, marking a decrease from the 1H22A figure of € 1.28 mln. In light of the results published in the half-year report for 1H23A, we update our estimates for both the current year and the coming years. Specifically, we estimate FY23E production value of € 93.80 million and EBITDA of € 9.30 million, corresponding to a margin of 10.0%. For the following years, we expect value of production to increase up to € 124.60 million in FY26E, with EBITDA of € 15.50 milion (corresponding to an EBITDA margin of 12.5%), up from a FY22A value of € 5.49 mln (corresponding to an EBITDA margin of 6.1%). We conducted our valuation of the equity value of Promotica based on the DCF method. The DCF method (including, for prudential purposes, a specific risk of 2.5% in the calculation of the WACC) returned an equity value of € 118.7 million. The target price is therefore equal to €7.00, with a BUY rating and MEDIUM risk. |