| The 1H23A value of production came in at € 118.96 million, up 18.1% compared to € 100.69 million in 1H22A. EBITDA for the period amounted to € 5.64 million, up by 35.4% compared to € 4.17 million in 1H22A, with an EBITDA margin equal to 4.7%, up from the margin of 4.1% in the first half-year of 2023. EBIT, after depreciation and amortization of € 0.91 million, is equal to € 4.73 million, marking an increase of 36.3% compared to the 1H22A result of € 3.47 million. Net Income stands at € 2.91 million, compared to € 2.39 million recorded in 1H22A, representing a growth of 22.0%. From the point of view of capital, the NFP for the half-year amounted to approximately € 22.56 million of debt, compared to € 18.04 million of debt in FY22A. In light of the published 1H23A half-year results, we have adjusted our estimates for both the current year and the coming years. In particular, we now estimate an FY23E value of production of € 243.00 million, and an EBITDA of € 13.20 million, corresponding to a margin of 5.4%. In the following years, we expect the value of production to rise to € 380.00 million (CAGR 22A-25E: 23.1%) in FY25E, with EBITDA equal to € 25.60 million (corresponding to a margin of 6.7%), up compared to € 9.69 million in FY22A (corresponding to an EBITDA margin of 4.8%). We conducted our valuation of the equity value of Pasquarelli Auto 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 € 94.2 million. Using market multiples, the equity value is € 91.9 million (including a 25.0% discount). The results give an average equity value of approximately € 93.0 million. The target price is € 3.75, with a BUY rating and MEDIUM risk. |