The Future of Energy: The Role of Smart Grids
In the last 15 years, significant exogenous shocks (GFC, Covid, 2022 energy crisis) and a slower-than-expected electrification process have impacted energy demand. As a result, since 2008, electricity consumption has cumulatively decreased by 10%.
It is estimated that in the next 10 years, energy demand could exceed +50% for two main reasons: the rapid expansion of data centers, which are essentially physical structures that host servers used for AI technologies, and the launch of the REPowerEU plan to reduce energy dependence on imported fossil fuels.
In this process, the role of Smart Grids, intelligent networks that, thanks to the use of modern digital technology, are able to acquire new functionalities, will be fundamental to:
- Increase the resilience and security of electrical networks;
- Improve outage management;
- Promote more efficient energy management.
Check out the market analysis for the month of June by Lorenzo Fuscà, Head of Wealth Management, and Stefania Cardone, Investment Advisory at Banca Profilo.
Markets: the Yen hits the historic lows
In the last month the Yen reached 160 against the dollar, a level that has not been recorded since 1990.
This has marked the arrival point of a long depreciation trend that finds its main causes in the divergence of monetary policy, in the different trajectories of economic growth and in the inflationary dynamics compared to the Western world.
If, in fact, in the post-Covid phase in the rest of the world the main central banks proceeded to raise rates to cope with inflationary pressures, in the country of the Rising Sun there was growth and low inflation, and an ultra-monetary policy accommodative, in contrast to that of the FED and the ECB. This environment has favoured carry trade operations, which have further weakened the yen.
The next key event will be the June meeting of the Bank of Japan (boj), where the central bank will have to take into account not only the dynamics of internal growth and inflation, but also the effects that higher interest rates could have on the cost of the country’s debt. You will need to wait for a clear signal from the boj before the Yen can catch up.
Take a look at the May market analysis by Lorenzo Fuscà, Head of Wealth Management and Emanuele Fino, CFA, Investment Advisory at Banca Profilo.
Spring Investor Conference 2024
The Spring Investor Conference (Tiny Titans Talk) took place on Tuesday, April 9th, at DAZI MILANO, an event organized by BancaProfilo.
On this occasion, institutional investors and some of the most promising companies listed on the EGM had the opportunity to meet and discuss the results of 2023, their strategies, and future objectives.
30 Italian and foreign institutional investors participated, along with 12 EGM companies: Cofle Group, COMAL SpA, Gismondi, Homizy, IDNTT S.A., Intred, MEMSCAP S.A., Nusco S.p.A., Riba Mundo Tecnología SA, Saccheria Franceschetti S.p.A, SolidWorld Group, SVAS Biosana S.p.A.
It was a moment of fruitful exchange and great vision on the future of the Italian financial market.
We thank everyone for participating and look forward to meeting again in September to continue this path of growth and collaboration.
Market Dynamics: Bets, Elections, and Geopolitical Impacts
After months of anticipating an imminent downturn, commentators now struggle to find concerning elements in the scenario, as the stock market continues its positive trend, with major indices reaching historic highs. But as Sun Tzu said in The Art of War, “The greatest danger is that which cannot be seen.”
The market is facing two major bets: the first concerns the increasingly widespread theme of artificial intelligence, with companies in the sector achieving enormous capitalizations and transforming global stock market dynamics; the second concerns the market’s expectation that interest rates will decline over the year, awaiting monetary policy decisions from Central Banks.
In short, the economic landscape presents challenges and uncertainties, including risks stemming from a potential increase in inflation, geopolitical tensions, and the numerous elections worldwide expected in 2024, which will significantly influence financial markets.
Therefore, it is essential to carefully consider, in investment management, possible tail events and risk factors for the economy, participating in the market with greater prudence and selectivity.
Discover why! Watch the analysis conducted by Lorenzo Fuscà, Head of Wealth Management, and Stefania Cardone, Investment Advisory at Banca Profilo.
WHO’S WHO by AssoNEXT – Banca Profilo
On March 21st, Banca Profilo had the pleasure of hosting the WHO’S WHO event by AssoNEXT.
It was a magnificent opportunity to delve into success stories and listen to the experiences of some of the brightest entrepreneurs and managers in Italy. Additionally, we witnessed moments of discussion with leading Italian institutional investors, from which constructive proposals emerged to make the EGM more attractive.
Thanks to all those who participated and made this evening a real success: Antonio Amendola, Dario Melpignano, Gian Paolo Rivano, Luca Mori, Luisa Franceschetti, Maurizio Ciardi, Paolo Rizzo and Walter Barbieri.
EGM Analysis 2023
The negative performance divergence between EGM and FTSE Italia All Shares widens.
In 2023, EGM surpassed 200 companies with 34 new IPOs, up from 26 listings in 2022. Total capitalization exceeded €9 billion, but averaged just below €40 million.
In 2023, the negative performance divergence compared to the FTSE Italia All Shares widened due to 1) limited liquidity; 2) loss of some benefits; 3) alternative financial activities that are more profitable as they are linked to the trend in interest rates.
Since 2021, EGM companies have shown growing revenues which are expected to continue in the three-year period 2023-2025 at an average rate above 15%, the EBITDA margin is estimated to recover already in 2023 until exceeding 2021 levels this year. Compared to our latest EGM Quarterly Report, consensus has lowered revenue and EBITDA expectations for 2023 and 2024.
Growth continues to be partly supported by M&A activity: in the last two years, on average, around 60 deals have been concluded.
What is needed to make a market segment that hosts Italian SMEs with high growth potential and good margins attractive? Find out the report by Francesca Sabatini, Head of Equity Research, and Michele Calusa, Equity Research Analyst of Banca Profilo.
DigitalPlatforms: Strengthening Financial and Asset Base
We are pleased to announce the completion of the hybrid financing transaction for a total value of 16.5 million in favor of DigitalPlatforms Group, a leader in the IoT and Cybersecurity sectors.
The transaction aims to support DigitalPlatforms in the implementation of its 2023-2030 industrial plan, focusing on the integration and consolidation of acquired companies in recent years, as well as investments in Research & Development activities. These include the design of high-tech products in the IoT, ICT, and Cybersecurity fields, targeting new sectors.
We acted as the Arranger in structuring the transaction and exclusive Placement Agent in raising capital, with a team composed of: Marco Baga, Head of Investment Banking, Alessio Muretti, Deputy Head of Investment Banking, Attilio Domenico Modaffari, Vice President, Francesco Ventura, Associate, Daiana Aurilio, Analyst.
For more information, we invite you to read the press release.
