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Original-Research: Somec S.p.A. - from GBC AG
08.10.2025 / 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 (Note)
Recommendation: BUY
Target price: 23.35 EUR
Last rating change:
Analyst: Marcel Goldmann, Cosmin Filker
Business development HY1 2025
On 25 September 2025, the Somec Group published its half-year figures for
the current financial year 2025. The performance in the first six months was
primarily characterised by moderate growth and a strong improvement in
profitability at all earnings levels. Thanks to continued strong momentum in
the maritime business and robust refitting business (modernisation of older
ships, etc.), the Somec Group achieved moderate revenue growth of 3.9% to EUR
192.7 million in the first half of the year (HY1 2024: EUR 185.6 million).
In terms of earnings, the company achieved a disproportionately high
increase in EBITDA of 24.1% to EUR 15.8 million (HY1 2024: EUR 12.8 million) due
to the onset of economies of scale and a favourable sales mix (higher share
of high-margin refitting business). This resulted in a significant
improvement in the EBITDA margin to 8.2% (HY1 2024: 6.9%). The improvement
in operating earnings was also driven by positive earnings effects from the
organisational optimisation measures implemented over the past 18 months. A
significant improvement was also achieved at the net result level (after
minorities) to EUR 1.63 million (HY1 2024: EUR -2.14 million).
In terms of the composition of sales, the main business segment 'Horizons'
accounted for the lion's share (60.0%) of Group sales. This business segment
generated revenue of EUR 115.5 million in the first half of the year, almost
matching the high level of the previous year (first half of 2024: EUR119.8
million). Project postponements, particularly in the civil US glass
business, had an inhibiting effect on growth and prevented a better revenue
trend. Nonetheless, a more favourable sales mix (higher share of high-margin
refitting business) and stronger cost efficiency effects led to a
significant increase in EBITDA to EUR 10.9 million (H1 2024: EUR 9.2 million) in
this division. Accordingly, the EBITDA margin also improved significantly to
9.4% (1st half of 2024: 7.7%).
By contrast, the second-largest business segment in terms of volume,
'Mestieri', recorded dynamic segment sales growth of 25.3% to EUR 48.8 million
(HY1 2024: EUR 38.9 million), primarily thanks to increased maritime projects
(particularly in the construction of new cruise ships). At the same time,
EBITDA grew disproportionately to EUR 2.9 million (HY1 2024: EUR 1.4 million)
due to the acquisition and implementation of higher-margin projects and the
positive effects of restructuring and reorganisation measures, which was
also reflected in a dynamic increase in the EBITDA margin to 5.8% (HY1 2024:
3.5%).
The 'Talenta' division also achieved segment sales growth of 5.7% to EUR 28.4
million (HY1 2024: EUR 26.9 million) due to increasing orders in the area of
professional kitchen systems for the shipping industry and a slight increase
in sales of professional kitchen products (primarily industrial pizza
ovens). Due to restructuring costs incurred in the production area (bundling
of production facilities), segment EBITDA was almost on a par with the
previous year at EUR 2.1 million (HY1 2024: EUR 2.2 million). This resulted in a
slightly lower EBITDA margin of 7.4% (HY1 2024: 8.0%).
With regard to the order situation, the Somec Group's total order backlog
(backlog awarded including option contracts), which primarily includes
orders in the core segment 'Horizons', amounted to EUR 678.0 million as at 30
June 2025 and was therefore only slightly below the previous year-end figure
(31 December 2024: EUR 744.0 million). However, it should be noted that,
thanks to several large orders already announced in July, the total order
backlog (backlog awarded including option contracts) as of 15 July 2025 rose
significantly to EUR 769.0 million, thereby significantly exceeding both of
these reference values. This extensive order backlog even extends into 2033
and provides a high level of visibility and planning capability while also
forming a good basis for further growth.
With regard to the balance sheet structure, Somec carried out a non-cash
capital increase (without subscription rights) totalling EUR 6.11 million at
the end of the first half of the current financial year to strengthen its
equity base. The subscription of the capital increase was reserved for VIS
S.r.l., which is wholly owned by Somec's main shareholder Venezia S.p.A..
This transaction included the transfer of the property lease where Somec has
its headquarters. The capital increase by contribution in kind comprised the
issue of 381,875 ordinary shares at an issue price of EUR 16.00 per share,
corresponding to 5.53% of Somec's share capital.
In view of the pleasing half-year results and good order situation, the
Somec management has also confirmed its previous guidance with the
announcement of the half-year figures and continues to expect a significant
improvement in margins and an improvement in the debt situation ('leverage'
reduction) for the current financial year 2025.
In light of the positive half-year performance, the continued good order
situation and the confirmed outlook, we have maintained our previous sales
and earnings estimates. Thanks in particular to its strong market
positioning in the booming maritime sector, the Somec Group should be able
to continue its growth trajectory and achieve a further gradual improvement
in margins. Based on our confirmed forecasts and the 'roll-over effect' that
has occurred (price target based on FY 2026 instead of FY 2025), we have
moderately increased our previous price target to EUR 23.35 (previously: EUR
22.50) per share. In contrast, the dilution effect (increase in the previous
total number of shares by approximately 5.5% to 7.28 million), which was due
to the capital increase against contribution in kind carried out in the
middle of the financial year, had the effect of reducing the price target.
In view of the current share price level, we therefore continue to assign a
'BUY' rating and see significant upside potential in the Somec share.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=aa3874b07841aadbbdf4f8720cfaa905
Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date (time) of completion: 08/10/2025 (9:29)
Date (time) of first distribution: 08/10/2025 (11:00)
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2209952 08.10.2025 CET/CEST
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