DEA debuts on the EGM market
We are pleased to announce that DEA – Distribuzione Elettrica Adriatica S.p.A., a company active in the distribution of electricity and management of public lighting in the regions of Marche, Abruzzo, and Liguria, has been admitted by Borsa Italiana for trading of ordinary shares and warrants on the EGM market.
In this operation, Banca Profilo assisted DEA as Euronext Growth Advisor, Global Coordinator, and Corporate Broker.
We wish DEA a future of success and growth in the prosperous and dynamic energy market!
EGM Analysis 1Q24
In 2024, the number of companies listed on the EGM remained unchanged, slightly above 200. There were 5 IPOs in the quarter, quite in line with last year when there were 8 IPOs and then 33 at the end of the year. Total capitalization fell below 9 billion euros, with an average of just under40 million.
Since the beginning of the year, the FTSE Italia Growth index continues to underperform both the FTSE Italia All-Share and the FTSE Italia STAR. Notably, EGM participated to a lesser extent in the October 2023 stock rally resulting from slowing inflationary pressure and the first signs of a reversal in monetary policy.
In 2023, the EGM companies confirmed their growth potential and good profitability: the average revenue growth was 22% and approximately 45% of the companies reported an EBITDA margin greater than 15%.
The pace of M&A operations remained high also in the first quarter with 18 deals (in line with 19 last year).
What are the growth and margin prospects for the next three years? Find out the report by Francesca Sabatini, Head of Equity Research, and Enrico Luca, CFA, Equity Research Analyst of Banca Profilo.
Tiny Titans Talk
With great pride, we present to you the new segment ‘Tiny Titans Talk,’ sharing some of the successful entrepreneurial stories from EGM (Euronext Growth Milan).
Why is their offering innovative? What are the strengths and competitive advantages? What are the challenges of 2024? All this and more can be found in the video interview conducted during the Spring Investor Conference of Banca Profilo.
In order of appearance, we thank: Alessandro Peveraro of HOMIZY, Marco Dezi of Riba Mundo Tecnología SA, Jean Michel Karam of MEMSCAP, Luisa Franceschetti of Saccheria F.lli Franceschetti S.p.A., Daniele Peli of INTRED S.p.A., Roberto Rizzo of SolidWorld GROUP, Christian Traviglia of IDNTT, Alfredo Balletti of COMAL SpA, Gismondi Massimo of Gismondi 1754 spa.
DigitHer and Female Empowerment
Banca Profilo is proud to support DigitHer, a comprehensive and accessible online training program for female empowerment in the digital world, promoted by Valore D and Generation Italy and funded by the Digital Republic Fund.
Why DigitHer? We believe in the importance of closing the gender gap in the technology sector and providing women with opportunities to excel in this field. Thanks to our colleagues, IT Solutions & Delivery Specialists Elisabetta Campiotti and Marta Lodi Rizzini, who participated in the project, sharing their educational and professional journeys with the participants.
For more information on Valore D, which the Bank has been supporting for several years, visit their website.
The semiconductors and the inflation uncertainties
For about a year now, the stock market has only rewarded passive instruments, focused on a few large titles primarily in the semiconductor sector. Semiconductors have thus become the true market beta, overshadowing active management and alpha generation.
It’s a pricey sector where only a few major players dominate, such as Nvidia and Taiwan Semiconductor, which has seen revenue projections increase by over 25%. However, not all semiconductor companies are celebrating; those still anchored in traditional business models, like Intel, have faced greater challenges. Therefore, the exuberant trend of Artificial Intelligence is not as irrational as the dot-com bubble.
While acknowledging the logic behind some trends, 2024 might see a return of active management: with a bit less beta and a bit more alpha in portfolios.
Approved the preliminary results of 2023
The main objectives of the 2020-2023 Industrial Plan have been achieved, highlighting the digital transformation process and commitment to sustainability and corporate well-being.
Net revenues solidify at 76.6 million euros (+8.5% y/y) with a net profit of 12.1 million euros (+8.9% y/y).
Operational management results also show growth, reaching 20.5 million euros (+11% y/y), with a Cost-Income ratio reduced to 73.3%. Customer deposits reach 6 billion euros (+6.7% y/y). CET1 ratio at 22.3%, confirming the financial strength of Banca Profilo.
Read the press release: https://www.bancaprofilo.it/wp-content/uploads/2024/02/2024_02_08_CS.pdf
Bonds, Stocks and AI Innovation
The year 2023 has certainly been a year full of surprises. Among them, the United States and Europe managed to avoid recession, and China missed the economic boom post-reopening.
Meanwhile, the growing significance of Artificial Intelligence (AI) continues to offer potential revolutions, as demonstrated by ChatGPT, providing the ability to generate unique content without the need for programming. This automation impacts labor dynamics.
The convergence of AI and investment management is creating a unique synergy, enhancing operational efficiency, empowering investment decisions, and contributing to innovation and economic growth. This showcases how Artificial Intelligence is not a threat but a powerful ally in enhancing human creativity and decision-making.
They explain this in the video, Lorenzo Fuscà Head of Wealth Management and Linda Gentili, Portfolio Manager at Banca Profilo.
