| As of the first half of 2024, the value of production reached € 3.52 million, reflecting a 22.0% increase compared to € 2.88 million as of June 30th, 2023. EBITDA for June 30th, 2024, stood at € 1.05 million, marking a significant growth of 122.0% compared to € 0.48 million for the 1H23A. The EBITDA margin for the period, calculated on sales revenue, was 58.5%, a notable increase from 20.8% in the first half of 2023. EBIT reached € 0.78 million, rising from € 0.33 million in the 1H23A, with the EBIT margin at 43.5%, up from 14.6% recorded on June 30th, 2023. Net income as of June 30th, 2024, was € 0.45 million, exceeding the € 0.17 million result of the previous period. In light of the results published in the semi-annual report for 1H24A, we are revising our estimates for both the current year and the upcoming years. Specifically, we estimate the value of production for FY24E to be € 10.00 million, with an EBITDA of € 3.25 million, corresponding to an EBITDA margin of 40.6% on sales revenue. Looking forward, we anticipate that the value of production will increase to € 17.00 million by FY26E, reflecting a CAGR of 34.3% from FY23A to FY26E. In the same period, we expect EBITDA to grow to € 5.65 million (with a margin of 40.9%), up from € 2.54 million in FY23A (which had an EBITDA margin of 41.2%). From a balance sheet perspective, we project a NFP that will turn cash positive by FY26E, amounting to € 4.82 million. Due to the lack of comparable companies, we conducted the valuation of Franchetti’s equity value using only the DCF methodology. The DCF method, which includes a specific risk premium of 2.5% in the WACC calculation for prudential purposes, resulted in an equity value of € 80.1 million. Based on this, the target price is set at € 10.00, with a BUY rating and MEDIUM risk. |