| As of June 30, 2024, sales revenue amounted to € 3.52 million, while the value of production stood at € 3.39 million. EBITDA was € 0.61 million, representing a margin of 17.8%. EBIT amounted to € 0.43 million with an EBIT Margin of 12.7%. Net Income stood at € 0.26 million. In terms of the balance sheet, the NFP as of June 30, 2024, amounted to € 0.36 million in debt, an improvement compared to € 0.43 million in debt as of December 31, 2023. In light of the results published in the 1H24A interim report, we fully confirm our estimates for both the current year and the coming years. Specifically, we estimate FY24E value of production to be € 8.30 million, with EBITDA of € 1.60 million, corresponding to a margin of 19.3%. For the subsequent years, we expect the value of production to grow to € 15.90 million (CAGR 23A-27E: 30.8%) in FY27E, with EBITDA reaching € 4.60 million (corresponding to a margin of 28.9%), up from € 1.23 million in FY23A (corresponding to an EBITDA margin of 22.6%). In terms of the balance sheet, we estimate a positive cash NFP of € 9.20 million for FY27E. We conducted our valuation of the equity value of Litix 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 € 32.0 million. Using market multiples, the equity value of Litix was calculated to be € 18.8 million (including a 25% discount). This results is an average equity value of approximately € 25.4 million. The target price is € 3.80, with a BUY rating and MEDIUM risk. |