LEONE FILM GROUP S.P.A. Equity | ||||||
Daily Note | MID CORPORATE | |||||
Calls from Italy: Specialist/Corporate Broking | 16 February 2022: 8:59 CET | |||||
Date and time of production | ||||||
Italy/Equity Market | ||||||
On Our Radar: Today's Newsflow | ||||||
MTA - STAR - EGM (ex-AIM) | ||||||
Positive | Negative | |||||
Salcef; Leone Film Group | - | Stock Markets: Performance | ||||
FTSE MIB Best & Worst: 1D% chg | |||||||
BPER | 9.2 | Eni | -1.1 | ||||
Leonardo | 4.9 | Unipol | -0.1 | ||||
Stellantis | 4.1 | Telecom Italia | 0.4 | ||||
Euro Stoxx Best&Worst Sectors -1D % | |||||||
Auto&Parts | 2.3 | Oil & Gas | -0.7 | ||||
Health Care | 2.2 | B Resources | -0.4 | ||||
Chemicals | 2.2 | Retail | 0.7 |
FTSE MIB-STAR Performance (-12M)
140 |
135 |
130 |
125 |
120 |
115 |
110 |
105 |
100 |
95 |
90 |
F M A M J J A S O N D J F |
FTSE MIB INDEX FTSE ITALIA STAR
Source: FactSet;
Upcoming Intesa Sanpaolo Events
What? | Where? | When? |
IT Conference | Virtual | 23-24 February |
STAR Conference* | Virtual | 22-24 March |
*Borsa Italiana |
Report priced at market close on day prior to issue; Ratings and Target Prices as assigned in the latest company reports (unless otherwise indicated).
This is an extract of our Equity Daily report published today, incorporating our comments on those companies for which Intesa Sanpaolo is Sponsor, Specialist or Corporate Broker.
Intesa Sanpaolo Research Dept
Equity Research Team
Corporate Broking Research Team
Sales & Trading +39 02 7261 2905
See page 6 for full disclosure and analyst certification | 16 February 2022: 08:53 CET |
Date and time of first circulation
Equity Daily | |
New Research
Wiit (BUY)
Company Note: BUY; New TP EUR 35.2/sh
Rating = | TP (€/sh) ▲ | 2021E EPS (€) ▲ | 2022E EPS (€) ▲ | 2021C EPS (€) | 2022C EPS (€) | |
Current | BUY | 35.2 | 0.351 | 0.599 | 0.334 | 0.583 |
Previous | BUY | 35.0 | 0.350 | 0.598 | - | - |
Source: Intesa Sanpaolo Research estimates and FactSet consensus
The acquisition of ERPTech should allow Wiit to significantly consolidate its leading positioning in Italy in management and hosting services based on SAP technology, in our view. Furthermore, mainly thanks to the integration of the ERPTech systems in Wiit's proprietary data centre, we see room to significantly improve the profitability profile of the acquired company.
Wiit - Key Data
16/02/2022 | Information | ||
Target Price (EUR) | 35.2 | ||
Rating | BUY | ||
Mkt price (EUR) | 30.18 | ||
Mkt cap (EUR M) | 846 | ||
Main Metrics (€ M) | 2021E | 2022E | 2023E |
Revenues | 78.50 | 117.7 | 126.0 |
Adj. EBITDA | 29.50 | 41.00 | 47.30 |
Adj. EPS (EUR) | 0.35 | 0.60 | 0.76 |
Net debt/-cash | 140.0 | 134.1 | 119.4 |
Ratios (x) | 2021E | 2022E | 2023E |
Adj. P/E | 85.9 | 50.3 | 39.8 |
EV/EBITDA | 35.2 | 25.1 | 20.4 |
EV/EBIT | 78.2 | 43.9 | 32.1 |
Debt/EBITDA | 5.0 | 3.4 | 2.5 |
Div yield (%) | 0.3 | 0.7 | 0.9 |
Performance (%) | 1M | 3M | 12M |
Absolute | -13.5 | -9.9 | 86.3 |
Rel. to FTSE IT All Sh | -11.6 | -6.4 | 63.2 |
Source: FactSet, Company data, Intesa Sanpaolo Research estimates
Intesa Sanpaolo is Corporate Broker to Wiit
Gabriele Berti - Research Analyst +39 02 7235 1806 gabriele.berti@intesasanpaolo.com
2 | Intesa Sanpaolo Research Department |
Equity Daily | |
Results
EdiliziAcrobatica (HOLD)
FY21 Preliminary Results
Results. EdiliziAcrobatica just released FY21 preliminary results (top line). In particular:
- Sales at EUR 98.1M vs. EUR 44.7M in FY20, up +119.5% yoy, mainly thanks to the "Bonus Facciate 90%"; the results are above our estimate (EUR 79.5M), however we should account for an estimated EUR 6.4M of financial charges related to credit certification by auditor and transfers to banks;
- EdiliziAcrobatica France recorded revenues at EUR 3.4M vs. EUR 3.1M in FY20. The company has 77 employees in the country;
- At end-December, EdiliziAcrobatica counted on a total of 1,392 employees (both direct and franchisees) vs. 1,041 a year ago;
- In FY21, the company opened 18 new direct branches in Italy (13 our estimates), reaching 77 units compared to 59 at 31 December 2020;
- Full FY21 results should be reported on 29 March.
What we think: We believe the strong top-line result showed EdiliziAcrobatica's ability to capture the opportunities offered by the Bonus Facciate 90%. Thanks to a capillary Italian network and a growing franchise base, we believe the company should continue to grow at mid-digit in 2022E even though the Bonus Facciate has been lowered to 60%. We recall that last April EdiliziAcrobatica established Energy Acrobatica 110 Srl which, after completing the set-up phase, started its first projects in September. Although it has not been disclosed, we think projects related to the Superbonus 110% could have contributed by approx. EUR 1M in these last 4 months of 2021 and we believe the company could generate EUR 15M in FY22 and EUR 23M in FY23 as the Superbonus is confirmed until 2023 at the same %.
EdiliziAcrobatica - Key Data
16/02/2022 | Building Maintenance | ||
Target Price (EUR) | 20.0 | ||
Rating | HOLD | ||
Mkt price (EUR) | 16.05 | ||
Mkt cap (EUR M) | 129 | ||
Main Metrics (€ M) | 2021E | 2022E | 2023E |
Revenues | 79.46 | 105.3 | 125.3 |
EBITDA | 14.93 | 20.02 | 24.68 |
EPS (EUR) | 0.47 | 0.79 | 1.09 |
Net debt/-cash | 11.07 | 10.57 | 10.37 |
Ratios (x) | 2021E | 2022E | 2023E |
Adj. P/E | 33.8 | 20.2 | 14.7 |
EV/EBITDA | 9.5 | 7.4 | 6.3 |
EV/EBIT | 11.7 | 8.8 | 7.4 |
Debt/EBITDA | 0.74 | 0.53 | 0.42 |
Div yield (%) | 2.1 | 3.5 | 4.8 |
Performance (%) | 1M | 3M | 12M |
Absolute | -5.9 | -13.5 | 174.8 |
Rel. to FTSE IT All Sh | -3.8 | -10.1 | 140.7 |
Source: FactSet, Company data, Intesa Sanpaolo Research estimates
Intesa Sanpaolo is Specialist to EdiliziAcrobatica
Youness N. El Alaoui - Research Analyst
+39 02 7235 1815 youness.alaoui@intesasanpaolo.com
Intesa Sanpaolo Research Department | 3 |
Equity Daily | |
Leone Film Group (BUY)
Preliminary 2021 Results above Expectations
Vs. our estimates | Above | In Line | Below |
Results. The key points of results were:
- 2021 sales 5% above our estimate: LFG reported EUR 98.1M revenues in 2021, 5% above our estimates but slightly below the business plan (EUR 104.5M), thus implying better-than-expected sales in the second half of the year. Compared with 2019, revenues increased by nearly 40% in the year despite the Covid impact thanks to the good performance of the Production division (no details available). LFG produced 5 movies in 2021, one TV series ("A casa tutti bene" directed by Gabriele Muccino) and realized several international executive productions. We highlight that in February 2022, LFG released the movie "The Wolf and the Lion" which has reached a box office intake of EUR 2M;
- EBITDA margin at 49%: EBITDA reached EUR 48.1M (+72% vs. 2020) and was well above our expectations and the business plan (which forecasted EUR 39.1M) with a higher margin compared with 2019 and 2020 also due to the delivery of the TV series in December which was expected only in 2022;
- Net debt at EUR 61M: Net debt was also better than expected and improved compared with 2020 but was slightly up vs. June 2021 (when it was EUR 58.5M);
- Full 1H21 results due out on 29 March 2022.
What we think: 2021 preliminary results were clearly positive confirming the resilience of LFG despite the Covid impact, which strongly impacted the entertainment industry. We were particularly impressed by the strong EBITDA growth. We reiterate our positive stance.
Leone Film Group - Key Data
16/02/2022 | Entertainment | ||
Target Price (EUR) | 3.9 | ||
Rating | BUY | ||
Mkt price (EUR) | 2.56 | ||
Mkt cap (EUR M) | 36 | ||
Main Metrics (€ M) | 2021E | 2022E | 2023E |
Revenues | 93.36 | 112.1 | 120.7 |
EBITDA | 33.90 | 51.14 | 55.96 |
EPS (EUR) | 0.11 | 0.39 | 0.68 |
Net debt/-cash | 72.50 | 59.27 | 50.52 |
Ratios (x) | 2021E | 2022E | 2023E |
Adj. P/E | 22.6 | 6.6 | 3.8 |
EV/EBITDA | 3.2 | 1.9 | 1.6 |
EV/EBIT | 33.8 | 12.2 | 7.3 |
Debt/EBITDA | 2.1 | 1.2 | 0.90 |
Div yield (%) | 1.6 | 3.9 | 4.7 |
Performance (%) | 1M | 3M | 12M |
Absolute | -1.5 | -15.8 | -2.3 |
Rel. to FTSE IT All Sh | 0.6 | -12.5 | -14.4 |
Source: FactSet, Company data, Intesa Sanpaolo Research estimates
Intesa Sanpaolo is Specialist to Leone Film Group
Marco Cristofori - Research Analyst +39 02 7235 1818 marco.cristofori@intesasanpaolo.com
Leone Film Group - 2021 preliminary results
EUR M | 2019A | 2020A | 2021E | 2021A | 21 A/E % | 21/20 % | 21/19 % | 2H20A | 2H21A | 2H yoy % | ||
Revenues | 70.2 | 72.5 | 93.4 | 98.1 | 5.1 | 35.3 | 39.8 | 56.5 | 59.5 | 5.4 | ||
EBITDA | 29.0 | 28.0 | 33.9 | 48.1 | 41.9 | 71.8 | 65.8 | 23.6 | 32.9 | 39.0 | ||
Margin (%) | 41.3 | 38.6 | 36.3 | 49.0 | 41.8 | 55.2 | ||||||
Net debt / (cash) | 65.3 | 65.9 | 72.5 | 61.0 | -15.9 | -7.4 | -6.6 |
A: actual; E: estimates; Source: Company data and Intesa Sanpaolo Research estimates
4 | Intesa Sanpaolo Research Department |
Equity Daily | |
Company News
Be (Under Review)
BoD Approved Due Diligence Request by Engineering
Market Mover (BEST-IT) | Positive | Neutral | Negative |
What's up? Be has announced that its Board of Directors resolved to grant Engineering the authorisation to perform due diligence activities on the group. We remind that Engineering's request is aimed at evaluating the possible acquisition of approximately 43.209% of Be's share capital and the subsequent launch of a mandatory tender offer on Be's remaining shares. The company also announced that any payment in 2022 of a dividend not higher than the one resolved and distributed in 2021 (approximately EUR 3.83M; i.e. EUR 0.03/share excluding treasury shares) will not affect either the price per share of the acquisition or the subsequent tender offer's price per share disclosed to the market (EUR 3.45/share).
What we think: We recall that, while awaiting the approval of the definitive agreement and the consequent official announcement of the mandatary takeover bid, we recently placed our Rating and Target Price Under Review.
Be - Key Data
16/02/2022 | IT Consulting | ||
Target Price (EUR) | Under Review | ||
Rating | Under Review | ||
Mkt price (EUR) | 3.28 | ||
Mkt cap (EUR M) | 442 | ||
Main Metrics (€ M) | 2021E | 2022E | 2023E |
Revenues | 221.1 | 241.0 | 261.5 |
EBITDA | 36.48 | 40.49 | 44.46 |
EPS (EUR) | 0.09 | 0.11 | 0.13 |
Net debt/-cash | 6.07 | -10.60 | -29.60 |
Ratios (x) | 2021E | 2022E | 2023E |
Adj. P/E | 35.4 | 30.4 | 26.2 |
EV/EBITDA | 13.3 | 12.1 | 11.0 |
EV/EBIT | 22.3 | 19.3 | 16.7 |
Debt/EBITDA | 0.17 | Neg. | Neg. |
Div yield (%) | 0.9 | 0.9 | 0.9 |
Performance (%) | 1M | 3M | 12M |
Absolute | 27.9 | 15.9 | 121.3 |
Rel. to FTSE IT All Sh | 30.7 | 20.5 | 93.8 |
Source: FactSet, Company data, Intesa Sanpaolo Research estimates
Intesa Sanpaolo is Corporate Broker to Be
Gabriele Berti - Research Analyst +39 02 7235 1806 gabriele.berti@intesasanpaolo.com
Salcef (BUY)
Investments in Infrastructure from Cipess
Market Mover (SCF-IT) | Positive | Neutral | Negative |
What's up? The Cipess (Italian Interministerial Committee for Economic Planning and Sustainable Development) approved yesterday a EUR 6.3Bn investment plan in infrastructure relating to projects that could not be financed by the NRRP. EUR 4.7Bn should come from the 2021-2027 Development and Cohesion Fund for infrastructural works that can be immediately set up. To these, EUR 1.6Bn will be added for planned strategic interventions, whose implementation will take place as soon as the technical- economic feasibility plan is available. Even though almost 50% of the funds should be allocated to roads (not part of Salcef's core business), the plan includes important railway projects such as the Catania-Palermo line (second macro-phase), the upgrading of the Ravenna-Rimini, the doubling of the Codogno-Mantua, the Bari junction and the electrification of the Ionian line. The package is completed by the new connection of the Naples underground network with Afragola, and the Campolattaro dam in Molise. Overall, 80% of the funds should be allocated to Southern regions.
Salcef - Key Data
16/02/2022 | Industrials | ||
Target Price (EUR) | 26.0 | ||
Rating | BUY | ||
Mkt price (EUR) | 22.80 | ||
Mkt cap (EUR M) | 1325 | ||
Main Metrics (€ M) | 2021E | 2022E | 2023E |
Revenues | 434.0 | 480.0 | 530.0 |
EBITDA | 97.85 | 108.2 | 119.5 |
EPS (EUR) | 0.95 | 1.02 | 1.16 |
Net debt/-cash | -113.5-136.8-163.5 | ||
Ratios (x) | 2021E | 2022E | 2023E |
Adj. P/E | 24.1 | 22.4 | 19.7 |
EV/EBITDA | 13.2 | 11.6 | 10.3 |
EV/EBIT | 17.8 | 15.6 | 13.4 |
Debt/EBITDA | Neg. | Neg. | Neg. |
Div yield (%) | 1.7 | 1.8 | 2.0 |
Performance (%) | 1M | 3M | 12M |
Absolute | -6.9 | 10.1 | 80.2 |
Rel. to FTSE IT All Sh | -4.9 | 14.5 | 57.9 |
Source: FactSet, Company data, Intesa Sanpaolo Research estimates
Intesa Sanpaolo is Corporate Broker to Salcef Group
What we think: We appreciate the extraordinary planning investments coming from the Ministry of Infrastructure and Sustainable Mobility, which underlines the fact that the improvement of Italian infrastructure does not depend only on the NRRP and should continue for the next decade. We see that some projects are in regions where Salcef has already executed works in the past; we thus think it is possible that they could participate in the new tenders related to railway infrastructures.
Youness N. El Alaoui - Research Analyst +39 02 7235 1815 youness.alaoui@intesasanpaolo.com
Intesa Sanpaolo Research Department | 5 |
Market Mover: The indicators Positive/Neutral/Negative are the analysts' view on the market's possible reaction to the news in question. Intesa Sanpaolo's fundamentals-based12-month rating can be found in the key data table in the comment.
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Leone Film Group S.p.A. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2022 14:27:00 UTC.
