| The value of production amounted to € 34.54 million, marking a decrease of 13.8% compared to the € 40.04 million reported in the 2022 financial statements, and essentially consistent with the € 34.50 million estimated in our previous report. EBITDA, at € 2.26 million, decreased compared to the value for the previous year, equal to € 7.19 million, and was slightly below our estimate of € 2.50 million. The EBITDA margin, at 6.5%, was below the equivalent figure for 2022 of 18.0%, and slightly lower than our expectation of 7.2%. EBIT amounted to € -3.05 million (€ 1.25 million in FY22A*), slightly lower than our estimate of € -2.60 million. Net Income came in at € -2.39 million, compared to € 2.50 million recorded in FY22A*, and slightly lower than our expectation (€ -1.95 million). In light of the results published in the annual report for FY23A, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate an FY24E value of production of € 39.55 million, and an EBITDA of € 5.00 million, corresponding to a margin of 12.6%. In the following years, we expect the value of production to reach € 51.05 million (CAGR 23A-26E: 13.9%) in FY26E, with EBITDA equal to € 10.00 million (corresponding to a margin of 19.6%), up from € 2.26 million in FY23A (corresponding to an EBITDA margin of 6.5%). We conducted our valuation of the equity value of SEIF based on the DCF methodology and the 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 € 17.1 million. Using market multiples, the equity value of SEIF was calculated to be € 16.9 million (including a 25.0% discount). The results give an average equity value of approximately € 17.0 million. The target price is € 0.75, with a BUY rating and MEDIUM risk. |