| The half-year financial report as of 30th June 2024 showed a value of production of € 8,12 mln, down from € 10,78 mln recorded in the same period in 2023. The EBITDA for the period stood at € 0,09 mln, a decline compared to € 0,63 mln in the first half of 2023, primarily reflecting the contraction in revenues. EBIT also decreased, turning negative at € 0,14 mln, compared to € 0,37 mln in 2023. As a result, the company closed the first half of 2024 with a net loss of € 0,15 mln, compared to a net profit of € 0,21 mln reported in the same period in 2023. In terms of balance sheet, it is worth noting that the NFP as of 30th June 2024 worsened slightly compared to the balanced situation recorded as of 31st December 2023, reaching € 0,78 mln in debt. In light of the results published in the 1H24A report, we are updating our estimates for the current year and the upcoming years. Specifically, we estimate FY24E value of production at € 20,15 mln and an EBITDA of € 0,90 mln, corresponding to a margin of 4,5%. For the following years, we expect the value of production to increase to € 40,15 mln (CAGR 23A-28E: 12,2%) in FY28E, with EBITDA reaching € 3,15 mln (equivalent to a margin of 7,8%), compared to € 0,84 mln in FY23A (with an EBITDA margin of 3,7%). On the balance sheet, we estimate that the NFP will reach a cash-positive position of € 1,89 mln. We conducted the equity value valuation of Acquazzurra using the DCF methodology. The DCF method (which prudentially includes a specific risk of 2,50% in the WACC calculation) returns an equity value of € 25,6 mln. The target price is € 9,90, with a HOLD rating and MEDIUM risk. |