| In the semester, Reway Group strengthened its position as a leader in the infrastructure maintenance and rehabilitation sector. Sales revenues reached € 93.47 million, up 46.4% compared to the same period in 2023 (€ 62.85 million), with new contracts totaling over € 227.00 million and an order backlog surpassing the € 1.00 billion threshold. EBITDA for the period amounted to € 20.25 million, up 14.0% compared to the same period in 2023, which recorded € 17.74 million. EBIT reached € 15.41 million, up 27.6% from € 12.08 million in the previous semester, while Net income went up from € 6.00 million to € 8.48 million (41.3%). In light of the results published in the half-year report and the acquisition of Vega Engineering Srl, we update our estimates for the current year and the following years. In particular, we estimate an FY24E value of production of € 209.50 million and EBITDA of € 41.50 million, corresponding to a margin of € 20,0%. In the following years, we expect the value of production to reach € 255.50 million (CAGR 23A-26E: 24,5%) in FY26E, with EBITDA equal to € 55.20 million (EBITDA margin of 21,8%), up from € 26,44 million of FY23A. We have conducted the assessment of the equity value of Reway Group based on the DCF methodology and the multiples of a sample of comparable companies. The DCF method (which includes a prudential specific risk of 2.5% in the WACC calculation) returns an equity value of € 352.0 million. The equity value of Reway Group using market multiples is € 291.8 million (including a discount of 10.0%). This results in an average equity value of approximately € 321.9 million. The target price is €8.30, with a BUY rating and MEDIUM risk. |