| In its financial statement as of June 30th, 2023, Redelfi reported sales revenues of € 4.13 million. The value of production came in at € 4.19 million, showing an increase of 226,7% compared to the value of 1H22A, equal to € 1,28 mln. EBITDA for the period amounted to € 1.78 million, a clear improvement on the figure as of 1H22A, which was equal to € 0.03 million. EBIT, after amortization and depreciation of € 0.22 million, amounted to € 1.57 million, up on the negative value of 1H22A, with an EBIT Margin of 37.4%. Net Income was also positive, equal to € 1.35 million. In light of the results published on the half year financial report and after the good results of the BU Green, we modify our estimates for both the current year and the coming years. In particular, we estimate a FY23E Value of Production of € 8.75 million, and an EBITDA of € 3.50 million, corresponding to a margin of 40.0%. In the following years, we expect the value of production to rise to € 43.85 million (CAGR FY22A – FY26E: 76.5%) in FY26E, with EBITDA equal to € 23.55 million (corresponding to a margin of 53.7%), up from € 1.68 million in FY22A (corresponding to an EBITDA margin of 37.3%). We conducted our evaluation of the equity value of Redelfi based on 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 € 72.6 million. Using market multiples, the equity value of Redelfi is € 54.3 million (including a 25.0% discount). The result gives an average equity value of approximately € 63.4 million. The target price is € 7.50, with a BUY rating and MEDIUM risk. |