| In the first half of 2024, the Group generated consolidated revenues of € 29.47 million, a slight decline compared to € 30.21 million for the same period in the previous year, representing a change of -2.5%. The value of production, after other revenues of € 0.51 million, amounted to € 29.98 million compared to € 31.24 million in 1H23A. EBITDA for 1H24A stood at € 3.57 million, slightly down from the equivalent figure for 1H23A (€ 3.61 million), resulting in an EBITDA margin of 11.9% (11.5% in 1H23A). Net Income was also positive, amounting to € 0.43 million, compared to € 1.27 million recorded in the first half of the previous year. In light of the results published in the 1H24A half-yearly report, we are prudently adjusting our estimates for both the current year and the coming years. We estimate consolidated production value for FY24E at € 60.50 million and an EBITDA of € 7.40 million, corresponding to a margin of 12.2%, which is broadly in line with previous estimates. For the following years, we expect the production value to increase to € 67.00 million in FY26E, with a 24E-26E CAGR of 5.2%, consistent with market expectations for the fasteners sector, and an EBITDA of €8.85 million (corresponding to a margin of 13.2%), up from € 7.66 million in FY23A (which reflected an EBITDA margin of 12.5%). We conducted the equity valuation of Vimi Fasteners based on the DCF methodology and the multiples of a sample of comparable companies. The DCF method (which, for prudential purposes, includes a specific risk of 2.5% in the WACC calculation) yields an equity value of € 36.8 million. The equity value of Vimi Fasteners using market multiples amounts to € 38.0 million (including a discount of 25.0%). This results in an average equity value of approximately € 37.4 million. The target price is € 2.75, with a BUY rating and a MEDIUM risk level. |