Press Releases

Milan, 01 October 2020. DHH S.p.A. (“DHH”) (DHH.MI | WDHH21.MI) (ISIN shares IT0005203622 | ISIN warrants IT0005203689), the cloud computing provider of Southeast Europe, announces that Value Track, independent financial analysis boutique led by Marco Greco, published an update report on the company.

According to Value Track, on a pro-forma basis (i.e. assuming the reverse merge of Seeweb in DHH occurred as of Jan’19), 1H20 interim results provide evidence that: i) the company keeps growing despite Covid-19 (total revenues at €9,1mn, +8,3% YoY), ii) significant margin expansion capability is achievable (EBITDA Margin at 38,9%, +384bps YoY, and EBITDA at €3,5mn i.e. +20,2% YoY), iii) subscription based business allows sound OpFCF generation (65% of EBITDA), and iv) Net Debt is almost nil (vs. €2,2mn as of Dec’19).

Value Track has updated its 2020E PF-22E forecasts, with EBITDA and EPS revised up by 4% and 6% on average respectively, leading to slightly higher FCFs. New forecasts imply a 3yrs CAGR of 11% and 15% for sales and EBITDA, with EPS expected to double from €0,40 in 2019PF to €0,85 in 2022. Net Cash is now expected to reach €8,9mn by 2023E, driven by cumulated €12,6mn FCF, leaving room for potential M&A deals.

Value Track slightly increased DHH fair value to €18,5 per share, (from €18,0), that compares to current €11,9 market price.

The equity research is available on the website of DHH, in the related section:
https://www.dhh.international/equity-research

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