Gimv 1Q FY25 trading update: Wider discount opens up buying opportunity

Gimv's 1Q trading update highlighted that portfolio return came in at 3.5%, which led to a growth in the NAVps which currently is €52.0ps, net of the €2.6ps dividend (July'24). During 1Q, Gimv's portfolio companies grew both revenues and margins and are well positioned to achieve double-digit growth during 2024. EBITDA growth has been the main driver of value creation which will also have a positive impact on NAV. Gimv has signed an agreement to sell its participation in 1 portfolio company which will have a positive NAV impact of €0.5ps, implying cap. gains of ~€14-15.0m. On the other hand, Gimv has put its cash to work with investments in SMG (Smart Industries, Germany) and Curana (Consumer, Belgium) alongside bolt-on acquisitions. We see a buying opportunity since Gimv's discount has widened to 23.0% which is much higher the 2yr and 5yr discount of 13.0% and 0.4% respectively. We reiterate our BUY rating and €51 TP.