Research | 10 November 2023 00:00
Original-Research: Health Italia S.p.A. – from GBC AG
Classification of GBC AG to Health Italia S.p.A.
Company Name: Health Italia S.p.A.
ISIN: IT0005221004
Reason for the research: GBC Italian Champions
Recommendation: BUY
Target price: 4.00 EUR
Last rating change: -
Analyst: Matthias Greiffenberger, Marcel Schaffer
„Health care specialist from Italy“ Health care specialist from Italy. Focus on profitable core business as basis for future growth and innovation. Significant increase in turnover and result expected
Health Italia S.p.A. The Health Italia Group is a healthcare and welfare organization aiming to enhance the quality and accessibility of health and welfare services. The primary focus of the group revolves around enrolling new members into Mutual Health Funds (new members will become beneficiaries of the healthcare coverages provided by the Funds). Commissions are offered for successfully recruiting new members. The acquisition of these new members is accomplished through a multi-channel strategy, with a significant emphasis on leveraging the support of over 2,000 independent promoters and a network of banks. Additionally, the group operates successfully in the telemedicine sector and provides valuable services to mutual healthcare funds.
Health Italia S.p.A. reported total revenues of € 42.51 million in 2022, up from € 40.51 million in 2021. The largest portion of the revenue came from promotion and services, contributing € 39.13 million. There was also an extraordinary revenue of € 2.6 million from a real estate transaction involving the company’s headquarters. Segment-wise, the promotion-and-services segment was the largest revenue generator, but it faced a slight decrease due to the effects of the COVID pandemic. The health-benefits segment showed strong growth, largely due to the success of telemedicine services.
On the earnings side, the company reported an adjusted EBITDA of € 7.82 million in 2022, an increase of 3.5% from 2021. Cost reductions across all profit and loss positions helped achieve substantial non-adjusted EBITDA growth of 48.5%, raising it to € 8.34 million (PY: € 5.62 million). The promotion-and-services segment was the leading contributor to EBITDA. The overall net result significantly improved to € 3.7 million, up from € 1.06 million the previous year.
Health Italia is undergoing a strategic transformation, focusing on promotion, telemedicine, medical services, and healthcare plans while scaling back investments in the nutraceutical and real estate sectors. The COVID-19 pandemic has accelerated the demand for telemedicine services, which the company aims to capitalize on, while improving service quality and efficiency. Health Italia is also investing in digital platforms. They are expanding their sales channels to include an online platform, thus broadening their customer base. The company’s agility and commitment position it for significant growth in the coming years. Their revenue guidance for 2023 to 2026 aims for revenues between € 50.0 to € 52.0 million, with a focus on reinvestment, cost-saving, and sustainability. According to our projections, the company’s revenue is expected to experience a slight decline to € 38.2 million in 2023. This can be attributed to the impact of extraordinary real estate income in 2022 and a strategic shift in their operations. However, we anticipate the revenue to grow by 8.6% in 2024 to reach € 41.58 million.
In the DCF model we are in sync with the guidance and forecast revenues of € 50.31 million and an EBITDA of € 13.12 million by 2026. Based on our DCF model, we have arrived at a target price of € 4.00. Given the significant upside potential, we assign a Buy rating.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/28209.pdf
Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821⁄241133 0
research@gbc-ag.de
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Disclosure of potential conflicts of interest in accordance with Section 85 WpHG and Art. 20 MAR The following potential conflict of interest exists at the company analysed above: see individual studies; a catalogue of potential conflicts of interest can be found at:
https://www.gbc-ag.de/de/Offenlegung
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Editorial deadline: 06.11.2023
Date and time of completion of the research report (german version): 09.11.2023 (08:13 am)
Date and time of the first disclosure of the research report (german version): 09.11.2023 (10:00 am)
Date and time of completion of the research report (english version): 09.11.2023 (8:07 pm)
Date and time of the first disclosure of the research report (english version): 10.11.2023 (10:30 am)
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