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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 EQ

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 cost

(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 wa

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

Interessenkonflikt gegeben: (5a, 5b, 6a, 11); Einen Katalog möglicher

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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