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Original-Research: Somec S.p.A. - from GBC AG
03.06.2025 / 11:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of GBC AG to Somec S.p.A.
Company Name: Somec S.p.A.
ISIN: IT0005329815
Reason for the research: Research study (Initial Coverage)
Recommendation: BUY
Target price: 22.50 EUR
Last rating change:
Analyst: Marcel Goldmann, Cosmin Filker
Somec S.p.A. (Somec) specialises in the engineering, design and
implementation of complex projects in the civil and naval sectors and
operates in three different business areas: Horizons (customised systems for
naval architecture and building façades), Talenta (professional kitchen
systems and products), Mestieri (design and production of customised
interior furnishings).
The Somec Group closed the past 2024 financial year with a moderate increase
in sales of 3.2% to EUR 382.82 million (PY: EUR 371.04 million) thanks to
significant growth in the core business area 'Horizons' (maritime and civil
glass business). Thanks to an improved sales mix (higher share of the
high-margin marine business) and greater cost efficiencies, EBITDA increased
disproportionately by 62.7% to EUR 29.58 million (PY: EUR 18.18 million). At the
same time, the EBITDA margin increased significantly to 7.7% (PY: 4.9%). At
net level, however, a negative consolidated result (after minority
interests) of EUR -3.30 million (PY: EUR -11.65 million) had to be reported due
to special effects incurred, which primarily related to restructuring costs
(approximately EUR 0.50 million) and goodwill amortisation (approximately EUR
4.80 million). Adjusted for these effects, an adjusted net result of EUR 4.80
million was achieved instead, representing a significant improvement on the
previous year (PY: EUR -10.37 million).
The order backlog at the end of the past financial year totalled EUR 744.0
million (of which around 66.0% was attributable to Horizons) and was
therefore almost at the same high level as the previous year (PY: EUR 752.0
million). According to the company, 39.5% of this extensive order backlog
will be recognised as revenue in the current financial year and 26.2% in the
following financial year 2025.
In view of their positive business development and strong order backlog,
Somec's management is forecasting single-digit percentage growth in Group
sales and a significant improvement in profitability for the current 2025
financial year compared to the previous year.
In light of the positive company performance, extensive order backlog and
the confirmed outlook in the first quarter, we are forecasting a moderate
increase in sales of 4.1% to EUR 398.55 million for the current financial year
(PY: EUR 382.82 million). Due to an expected improvement in the sales mix
(higher share of the high-margin glass business), we also anticipate even
stronger EBITDA growth of 12.1% to EUR 33.17 million (PY: EUR 29.58 million) and
an increase in the EBITDA margin to 8.3% (PY: 7.7%).
With regard to the subsequent financial years 2026 and 2027, we expect
Somec's successful growth strategy to continue, with the core business area
'Horizons' being the Group's main growth driver. In addition, the 'Mestieri'
division should also be able to additionally fuel the Group's growth
momentum as part of our expected return to (segment) growth.
Accordingly, we are forecasting a further moderate increase in sales for
these financial years 2026 and 2027 to EUR 419.02 million and EUR 441.12 million
respectively. At the same time, we anticipate a disproportionately high
increase in EBITDA to EUR 36.53 million and EUR 39.79 million respectively due
to the expected stronger sales weighting of the traditionally high-margin
'Horizons' segment. At the same time, the EBITDA margin should improve
further to 8.7% (FY 2026) and 9.0% (FY 2027).
Overall, the Somec Group's strong niche positioning in the maritime sector
(global market leadership in ship glazing, etc.) should enable it to benefit
significantly from the booming cruise industry in the area of new ship
construction and ship modernisation (refitting projects). We also anticipate
a further increase in business volume in the US facade business based on the
expected robust demand for complex customised customer solutions. The
'Mestieri' business area should also be able to return to growth thanks to
its almost unique range of services and the business model-specific
optimisation measures implemented. In particular, their promising strategic
positioning in the various end markets, especially the luxury and
luxury-related sectors, should contribute significantly to this.
As part of our DCF valuation model, we have calculated a price target of EUR
22.50 per share based on our sales and earnings estimates for the current
financial year and subsequent years. Based on the current share price level,
we therefore assign a 'BUY' rating and see significant upside potential in
the Somec share.
You can download the research here: http://www.more-ir.de/d/32782.pdf
Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Beim oben analysierten Unternehmen ist folgender möglicher
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Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Date (time) of completion: 03/06/2025 (8:50)
Date (time) of first distribution: 03/06/2025 (11:00)
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2149582 03.06.2025 CET/CEST
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