| As of June 30, 2024, SolidWorld Group reported consolidated revenues of € 30.90 million, marking a 6.7% decline compared to € 33.14 million in the first half of 2023, primarily attributable to a decrease in hardware sales. EBITDA reached € 6.27 million, showing an increase compared to € 2.76 million in 1H23, thanks to the contribution of € 5.30 million to production value related to the development activities of the Electrospider project. Consequently, EBIT also improved, amounting to € 3.79 million, and Net Income rose from € 0.43 million in 1H23A to € 1.90 million in the first half of 2024. We are updating the FY24E production value estimate to € 77.00 million, taking into account the contribution from capitalized research and development costs. The estimated EBITDA is € 8.50 million, corresponding to an 11.0% margin. For the following years, we expect the production value to increase to € 95.00 million (CAGR FY23A – FY26E: 11.9%) in FY26E, with an EBITDA of € 9.00 million (corresponding to a 9.5% margin), up from € 3.40 million in FY23A (with an EBITDA margin of 5.1%). We conducted our valuation of the equity value of SolidWorld Group on the basis of 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 € 106,2 million. Using market multiples, the equity value of SolidWorld Group was estimated at € 73,2 mln million (including a 25% discount). This gives an average equity value of approximately € 89,7 million. The target price is € 5.40, with BUY rating and MEDIUM risk. |