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

GBC Italian Champions english - 12.11.2024

Dear investors,

For the second year in a row, we have selected 13 Italian small and mid-caps that we consider to be particularly promising as part of GBC’s “Italian Champions” study. As in the previous year, our selection is highly diversified across a range of sectors and covers a broad spectrum of market capitalisations, ranging from €32 million to €5.3 bn. Eight companies from last year's study have been included in this year's selection, leaving us with five new investment ideas.

Over the past twelve months, the fundamental market environment for German equities has deteriorated even further, which is why we are more convinced than ever that it can be worthwhile to look across the border. One trend cannot be overlooked: the capital market no longer seems to be an attractive option for German companies. On the contrary, the easy option of delisting has led to a decline in the number of listed companies in recent years. By contrast, a look at the Milan stock exchange and, thus, the Italian capital market shows a completely opposite development. While a total of 18 companies were listed on the Milan stock exchange in 2023, only three IPOs took place in Germany.

The greater willingness of Italian companies to go public is likely due, among other things, to structural advantages. These include, for example, 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 in favour of a capital market orientation. In addition, issuers can benefit from tax advantages when going public. The high value placed on equities can also be seen from the planned investment initiative Fondo Nazionale Strategico. A total of € 1.0 billion is to be invested in a targeted manner in medium-sized and smaller Italian companies under a new fund of funds proposed by the state investment bank Cassa Depositi e Prestiti (CDP). Even though the fund is aimed at institutional investors and qualified private investors, it is expected that the increased market liquidity and the generally higher demand for ‘second-tier’ stocks could prove to be a price driver for these stocks.

Which is why, on the following pages, we would like to present you, dear investor, with the GBC-Best of Italy 2024 selection. A series of promising companies from a variety of sectors with attractive valuations that, in our view, could be an attractive addition to a portfolio.

B&C Speakers S.p.A. (ISIN: IT0001268561)
Banca Ifis Group (ISIN: IT0003188064)
Cembre S.p.A. (ISIN: IT0001128047)
Energy S.p.A (ISIN: IT0005500712)
Franchetti S.p.A. (ISIN: IT0005508574)
IDNNT SA (ISIN: CH1118852594)
Lindbergh S.p.A. (ISIN: IT0005469272)
Redfish S.p.A. (ISIN: IT0005549354)
Reply S.p.A. (ISIN: IT0005282865)
Sanlorenzo S.p.A. (ISIN: IT0003549422)
Solid World Group S.p.A. (ISIN: IT0005497893)
Somec S.p.A. (ISIN: IT0005329815)
Zignago Vetro S.p.A. (ISIN: 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.

Banca IFIS S.p.A.

Banca IFIS SpA. Banca IFIS SpA is an Italy-based bank. The Bank is primarily engaged in the sector of trade receivables, non-performing loans and tax receivables. The Bank operates through five divisions: Banca IFIS, which is active in the supporting of trade receivables of small and medium sized enterprises operating in the Italian market; Banca IFIS International, which provides services to companies operating or based abroad; Banca IFIS Pharma, which supports trade receivables of local health services suppliers; Toscana Finanza, which is engaged in the activities of the business unit operating in the non-performing loans sector, and Fast Finance, which is mainly involved in the tax receivables sector. In addition, the Bank provides invetment banking services through GE Capital Interbanca SpA. It is active in Italy and abroad, including Poland, Romania, Hungary and India, among others. It operates through Interbanca Group and Cap.Ital.Fin.

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.

Franchetti S.p.A.

ID-ENTITY SA

K.R.Energy S.p.A.

LINDBERGH S.P.A.

REDFISH LONGTERM CAPITAL SPA

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.

Somec

Somec SpA is an Italy-based holding company, which designs and manufactures glass envelopes for cruise ships and special architectural projects. The Company provides products, systems and services based on clients' needs. It supplies prefabricated balconies, balcony sliding and hinged doors, balcony automatic doors, balcony balustrades and partitions, as well as wheelhouse windows, glass walls for public spaces, windscreens, special glazing for solarium, skywalks and skylights, fire-rated doors and glazing. Through its subsidiaries, the Company operates in the shipyards, in dry-docks and navigation to guarantee the product installation, renovation and maintenance. The Company operates in Italy, Germany, Spain, Finland, France, Japan, Australia, North and Central America.

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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