| The Group’s revenues amounted to €17.29 million, recording an increase of 3.5% compared to the result for the first half of 2023, when they were €16.70 million. Adjusted EBITDA totaled €0.27 million, up from the 1H23A figure, which was negative at €0.07 million. As a result, the Adjusted EBITDA Margin, calculated as a percentage of revenues, also improved, rising from -0.4% in 1H23A to 1.5% in the first half of 2024. EBIT, after Adjusted D&A of €0.33 million, stood at €-0.01 million, an improvement compared to the 1H23A figure, which was negative at €0.45 million. The EBIT margin is neutral at 0.0%, compared to the same period of the previous year, when it was -2.7%. Net Income amounted to €-0.22 million, up from €-0.60 million in 1H23A. In light of the results published in the 1H24A interim report, we are adjusting our estimates for both the current year and the coming years. In particular, we estimate FY24E sales at €38.00 million and EBITDA at €1.10 million, corresponding to a margin of 2.9%. For the following years, we expect sales to increase to €50.30 million (CAGR 23A-26E: 12.0%) in FY26E, with EBITDA reaching €3.50 million (corresponding to a margin of 7.0%), up from €0.81 million in FY23A (corresponding to an EBITDA margin of 2.2%). Given the lack of comparable companies, we have based our equity value assessment of Longino & Cardenal solely on the DCF methodology. The DCF method (which, for prudential reasons, includes a specific risk of 2.5% in the calculation of WACC) returns an equity value of €22.5 million. The target price is €3.60, with a BUY rating and MEDIUM risk. |