| The Company reported a value of production for 2022 of € 110.54 million (compared to € 91.76 million pro forma in FY21A). EBITDA for the period amounted to € 19.59 million, an increase of 15.9% compared to FY22A and with EBITDA margin at 17.7%. EBIT was € 16.21 million in FY22A, marking a growth of 22.3% compared to the previous year. The EBIT margin for FY22A was 14.8%. Net Income was also positive, amounting to € 9.97 million, marking an increase of 15.9% compared to the figure as of December 31, 2021, equal to € 8.60 million. In light of the results published in the annual report for FY22A, we have slightly adjusted our estimates for both the current year and the coming years, also taking into account the new capital increase from the exercise of the Greenshoe option. In particular, we estimate an FY23E value of production of € 126.85 million, and an EBITDA of € 23.50 million, corresponding to a margin of 18.5%. In the following years, we expect the value of production to rise to € 163.40 million (CAGR 22Y-25E: 13.9%) in FY25E, with EBITDA equal to € 31.85 million (corresponding to a margin of 19.5%), up from € 19.59 million in FY22A (corresponding to an EBITDA margin of 17.7%). We conducted our valuation of the equity value of Reway Group based on the DCF methodology and multiples of a sample of comparable companies. The DCF method (including, for prudential purposes, a specific risk of 1.5% in the calculation of the WACC) returned an equity value of € 290.6 million. Using market multiples, the equity value of Reway Group was calculated as € 190.4 million (including a discount of 25%). The result gives an average equity value of approximately € 240.5 million. The target price is € 6.25, with a BUY rating, and MEDIUM risk. |