Report
Cosmin Filker ...
  • Marcel Goldmann
  • Marcel Schaffer
  • Matthias Greiffenberger

GBC Italian Champions english - 09.11.2023

Dear investors,

The trend is clear: for some years now, fewer and fewer companies in Germany have dared to go public. The number of IPOs has been particularly low in recent years. Since the beginning of 2022, there have only been five new issues on the regulated market. At the same time, many companies have decided to leave the German capital market. The number of companies listed in Germany in the four segments of Deutsche Börse currently stands at 514. This structural development is compounded by the cur-rent difficult capital market environment, which does not suggest a trend reversal.

In contrast, the Italian capital market presents a positive picture. In the past calendar year, 49 new issues took place in Italy, breaking the record set in 2000. Last year is not an outlier, because in previous years there were also about 40 new issues a year, interrupted only by a pandemic-related restraint in IPOs. In the meantime, 419 issuers are listed on the Italian stock exchange and the Italian capital market has thus caught up considerably with the German capital market. In addition to the increasing willing-ness of Italian companies to focus their financing mix more on equity, the Italian capi-tal market also offers structural advantages. One example is the multiple voting rights, which enable better control of the founders and good takeover protection. For medium-sized companies in particular, this is a good argument for capital market orientation. In addition, investors benefit from attractive tax advantages, which can lead to tax exemp-tion of profits and current income if certain conditions are met. Issuers can also benefit from tax advantages when going public.

From the perspective of German investors, the Italian capital market currently offers attractive valuation levels. With a P/E ratio of 8, the Italian market was already clearly undervalued last year and thus quoted at a level that was otherwise only reached in times of crisis (2008 - P/E ratio = 6 and 2011 - P/E ratio = 6.5). This picture continues today, so it is not surprising that more than half of the 200 companies listed on Euron-ext Growth Milan have announced share buybacks.

In our first “GBC Italian Champions” study 2023, we present 13 particularly promising companies. With a market capitalisation of € 22 million to € 3.5 billion, our selection covers a wide range of sizes and also features broad sector diversification.

The "GBC Italian Champions“ Study 2023 contains assessments of the following companies:

B&C Speakers S.p.A. (IT0001268561)

Cembre S.p.A. (IT0001128047)

ENAV S.p.A. (IT0005176406)

Energy S.p.A (IT0005500712)

Giglio.com S.p.A. (IT0005453003)

Health Italia S.p.A. (IT0005221004)

IDNNT SA (CH1118852594)

Landi Renzo S.p.A. (IT0004210289)

MEXEDIA S.p.A. (IT0005450819)

Reply S.p.A. (IT0005282865)

Sanlorenzo S.p.A. (IT0003549422)

Solid World Group S.p.A. (IT0005497893)

Zignago Vetro S.p.A. (IT0004171440)

We wish you an exciting read and successful investments,

Cosmin Filker

Deputy Chief Analyst

Underlyings
B&C Speakers

B & C Speakers SpA is an Italy-based company primarily engaged in the manufacture of audio equipment. The Company is active in the design, production, distribution and marketing of professional loudspeakers under the B&C brand name. Additionally, it supplies original equipment manufacturer (OEM) components to professional audio brands. The Company's portfolio consists of high frequency drivers and horns, coaxial components and cone drivers, as well as low frequency drivers. The Company sells and distributes its products nationally and internationally, including the United States, Mexico, Dominican Republic, Egypt, India and Brazil, among others. The Company's major shareholder is Research & Development International Srl.

Cembre

Cembre SPA. Cembre SpA is an Italy-based manufacturer of electrical compression connectors and cable accessories for panel building and installation, medium voltage cables and other applications. The Company also manufactures mechanical, pneumatic and hydraulic tools for installing electrical connectors and for cutting cables, and terminal blocks. Cembre SpA operates through several subsidiaries based in the United Kingdom, France, Spain, Norway, Germany, the United States and Italy.

ENAV S.p.A.

Enav SpA is an Italy-based company primary engaged in the air traffic control. The Company's activities are divided into two segments: Flight assistance services and Maintenance services. The Flight assistance services division is responsible for the air traffic management and control services, as well as other services related to air navigation within Italian air space and in national civil airports. The Maintenance services division focuses on technical management and maintenance of air traffic control installations and systems. Its air-related infrastructure includes control towers, radars, navaids and aeronautical communication equipment. Furthermore, it provides updates of aeronautical information, development of air traffic procedures, weather information at airports, as well as trainings for air traffic controllers, among others. The Company operates through a number of subsidiaries, such as Techno Sky Srl, ENAV North Atlantic and SICTA Consortium.

GIGLIO.COM SPA

Health Italia

Health Italia SpA is an Italy-based company engaged in the healthcare industry. The Company provides medical services, through its subsidiaries and affiliates. Health Italia SpA operates through several entities, including Basis Cliniche Srl, which is specialized in the management of polyclinics and dental centers laboratories; Coopsalute SCpA, which provides welfare and health care services through a network of health professionals and affiliated structures; Scegliere Salute Srl, which deals with the research about healthcare clinics; Impresa Sanitaria Alfa 88 Srl, which runs clinics and nursing homes in the municipality of Rome, and Janua Broker SpA, which is specialized in the business of health care.

ID-ENTITY SA

Landi Renzo

Landi Renzo is a provider of alternative Liquefied Petroleum Gas (LPG) and methane fuel systems and components for vehicles. Co. is engaged in the segment of fuel supply systems for the automotive sector, designing, producing, installing and selling eco-compatible LPG and Compressed Natural Gas fuel supply systems, as well as audio systems through the subsidiary AEB S.p.A., alarm systems through the MED brand and compressors through the SAFE brand. Co. manages all the phases of the process ending with the production and sale of fuel supply systems for the automotive sector. Co. sells both to the main car manufacturers at a worldwide level and to independent retailers and importers.

MEXEDIA S.p.A

Reply S.p.A.

Reply is engaged in the provision of consulting, system integration and digital services, dedicated to the creation, design and implementation of solutions based on new communication channels and digital media. Co. is consisting of a network of specialist companies, supports European industries belonging to the Telco & Media, Manufacturing & Retail, Bank & Insurances and Public Administration segments, in defining and developing new business models utilizing Big Data, Cloud Computing, CRM, Mobile, Social Media and Internet of Things paradigms.

Sanlorenzo

Sanlorenzo SpA is an Italy-based company active in the luxury market as a shipyard specialized in the design, manufacturing and distribution of yachts and superyachts over 30m. It manufactures tailor-made yachts and superyachts. The Shipyard has three business divisions: Yacht Division, which manufactures composite 24-38 meters yachts; Superyacht Division, manufacturing 40-68 meters aluminum and steel superyachts and Bluegame Division, producing 13-21 meters sports utility yachts in composite. All the Company's products are marketed under the Sanlorenzo and Bluegame brands. The Company's manufacturing activities are carried out through four shipyards located in La Spezia, Ameglia, Viareggio and Massa. It operates in Europe, the Americas, Asia Pacific (APAC) and Middle East and Africa (MEA). In addition, it cooperates with a network of more than 1,500 artisan companies and count on an international distribution and service network for customers worldwide.

SOLID WORLD S.P.A.

Zignago Vetro SpA

Zignago Vetro is a glass container manufacturing group based in Italy. Co. is engaged in the production of hollow glass containers primarily for Food and Beverage, Cosmetics and Perfumery, Luxury Perfumery and Specialty Glass containers markets. Co. is active throughout the world with a "business-to-business" model through four Business Units: Zignago Vetro (food and beverage containers), Verreries Brosse (luxury perfumery containers), Vetri Speciali (Specialty glass containers), and Huta Szkla Czechy. Production is carried out in facilities located in Italy, in France, and Poland.

Provider
GBC AG
GBC AG

Die GBC AG mit Sitz in Augsburg ist eines der führenden bankenunabhängigen Investmenthäuser in Deutschland und erfahrener Emissionsexperte für den deutschen Mittelstand.

Die GBC AG kennt als eigentümergeführtes Unternehmen die Bedürfnisse des deutschen Mittelstandes im Finanzierungsbereich und ist ein unabhängiger und verlässlicher Partner bei allen Fragestellungen rund um den Kapitalmarkt.

In der GBC Gruppe bietet die GBC AG Unternehmensanalysen & Research, Kapitalmarkt- & Finanzierungsberatungen sowie Kapitalmarktkonferenzen.

Die GBC Kapital GmbH ergänzt die Leistungen in der Gruppe um das Corporate Finance in den Bereichen Platzierung & Vermittlung von Anleihen und Aktien

Analysts
Cosmin Filker

Marcel Goldmann

Marcel Schaffer

Matthias Greiffenberger

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