Original-Research: Health Italia S.p.A. - von GBC AG Einstufung von GBC AG zu Health Italia S.p.A. Unternehmen: Health Italia S.p.A. ISIN: IT0005221004 Anlass der Studie: Research Report (Note) Empfehlung: BUY Kursziel: 4.00 EUR Kursziel auf Sicht von: 31.12.2024 Letzte Ratingänderung: Analyst: Matthias Greiffenberger, Marcel Schaffer Good first half-year. The focus on the core business model is paying off. Forecast confirmed.   In the first half of 2023, revenues amounted to €17.81 million, signaling a slight 7.5% decline compared to the same period in the previous year of €19.25 million. This decline is primarily associated with the impact of the 'discontinued operations' of Be Health S.p.A. and Health Property S.p.A., which represent the two segments Nutraceutical and Real Estate.   The core segment of promotion and services ('Servizi Health Care') experienced a robust growth of 6.9%, reaching €11.16 million (PY: €10.44 million). Meanwhile, the customer support segment ('Support Health Care') exhibited substantial growth, increasing by 10.0% to €1.93 million (PY: €1.75 million). This shows that the introduction of a multi-channel distribution model, coupled with continuous investments in technological advancements, notably within the healthcare and telemedicine sector, has been instrumental in driving the noteworthy results achieved over the initial six months of the year. However, the health benefits segment ('Servizi Sanitari') saw a notable decline of 23.3%, amounting to €4.72 million (PY: €6.15 million). The drop in revenues for this segment can be largely attributed to accounting periods, and we anticipate that growth will stabilize and normalize over the course of the entire year.   In terms of cost management, the company has shown significant improvements in various key categories. Costs for services experienced a notable decrease, moving from €-13.07 million euros to €-12.05 million, which amounts to roughly 7.81% in cost savings. Staff costs also saw a significant reduction of approximately 13.47%, declining from €-2.64 million to €-2.29 million. This cost-saving was attributed mainly to outsourcing of IT services.   The adjusted EBITDA, standing at €3.27 million, experienced a slight increase of 2.7% compared to the gross operating margin in the first half of the preceding year (€3.18 million). The adjusted EBITDA margin now stands at 18.4% of net revenues, which signifies a growth of approximately 2 percentage points when compared to the first half of 2022 (16.5%). This commendable result is an outcome of increased margins within the core business and the effective cost-saving measures implemented by the Group. The adjustment to EBITDA is prompted by the fact that these effects do not stem from regular business operations and are issues expected to be mitigated in the medium term. The one-time impact is primarily associated with the acquisition of real estate in connection with an NPL deal.   The unadjusted EBITDA, encompassing various miscellaneous costs and charges ('Altri costi e oneri diversi') and other income (“Altri Ricavi e Proventi diversi”), contracted by 37.8%, reaching €2.87 million compared to the prior year's €4.61 million. This reduction led to a decrease in the EBITDA margin, which now stands at 16.1% as opposed to the previous year's 24.0%. This variance is primarily attributed to an extraordinary gain stemming from a real estate transaction in 2022.   The net result for the period indicates a profit of €1.52 million, in contrast to the same period in 2022 when a profit of €2.29 million was recorded.     In the first half of 2023, the Group continued its successful journey, achieving positive results, notably in profitability. Their commitment to a multi-channel distribution model, ongoing technological innovation, streamlined core activities, and cost control remained unwavering. Regarding the nutraceutical segment, Health Italia has chosen to discontinue its direct management of this segment in order to refocus on its core businesses, maintaining an indirect involvement through equity participation. As part of this decision, Be Health has approved a capital increase, resulting in a dilution of Health Italia's ownership to less than 50%. Furthermore, Health Italia is proactively investing in the enhancement of their digital platforms, paving the way for significant improvements in service quality and operational efficiency. These in-house platforms are poised to streamline workflows, ultimately bolstering operational effectiveness.   Moreover, Health Italia is pursuing an expansion of its sales and distribution model. Leveraging its existing sales channels, including banking and external networks, the company is now keen to broaden its market reach by introducing an online sales channel. This multi-pronged approach will diversify their customer base, making their services accessible to a broader clientele.   This strategic realignment, guided by Health Italia's core competencies and market demands, positions the company for substantial growth in the years ahead. It underscores their adaptability and unwavering commitment to leading the healthcare sector by evolving to meet the dynamic needs of their clients.   Health Italia S.p.A.'s guidance for 2023-2026 centers on reinforcing its financial structure and optimizing key performance indicators. This guidance aligns with the group's ESG principles and emphasizes reinvestment, cost-saving, and sustainability. By 2026, Health Italia aims to achieve revenues ranging from €50.0 to €52.0 million, an EBITDA within the €12.0 to €14.0 million range, and a positive net financial position.   The half-year results affirm that our forecast is on track, and we reaffirm our confidence in it. Due to the company's strategic shift towards core business operations, leading to exits from the nutraceutical and real estate sectors, we anticipate a slight decline in revenue for 2023 at €38.2 million. As the company refocuses solely on its core business in the subsequent year, we anticipate a growth of 8.6%, resulting in estimated revenues of €41.58 million in the year 2024. Our projections are consistent with the company's guidance, anticipating a fairly stable growth trajectory. In our discounted cash flow (DCF) model, we forecast revenues reaching €50.31 million and an EBITDA of €13.12 million by 2026.   As the company renews its focus on its core business, we anticipate a consistent upswing in profit margins. Notably, the promotional and service segment, already recognized for its high margins, has demonstrated even stronger profitability in the past. We believe that the revised strategy will empower the management to progressively regain and potentially surpass their previous levels of success. For 2023, we foresee an EBITDA of €6.58 million, reflecting an EBITDA margin of 17.2%. Furthermore, we predict a steady rise in EBITDA and margin in the ensuing years. Our projections indicate an EBITDA of €7.77 million and an EBITDA margin of 18.7% for 2024.   The financial charges are expected to decrease due to the repayment of the convertible bond. We also project a gradual decrease in the company's financial obligations over the years. Consequently, we anticipate that the net result will follow a trajectory similar to EBITDA, albeit with more pronounced margin improvements. After achieving a net result of €3.7 million in 2022, we expect figures of €3.07 million in 2023 and €4.04 million in 2024.   We maintain our confidence in the forecast and valuation, consequently reiterating our target price of €4.00 and a Buy rating.   Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/28163.pdf Kontakt für Rückfragen GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung +++++++++++++++ Date and time of completion of the research report: 09.11.2023 (10:00) Date and time of the first disclosure of the research report: 09.11.2023 (12:00) -------------------übermittelt durch die EQS Group AG.------------------- Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Original-Research: Health Italia S.p.A. - von GBC AG Einstufung von GBC AG zu Health Italia S.p.A. Unternehmen: Health Italia S.p.A. ISIN: IT0005221004 Anlass der Studie: Research Report (Initiating Coverage) Empfehlung: BUY Kursziel: 4.00 EUR Kursziel auf Sicht von: 31.12.2024 Letzte Ratingänderung: Analyst: Matthias Greiffenberger, Marcel Schaffer Reinforces its success by returning to its profitable core business, setting the stage for growth and innovation. Significant boost in sales and profits 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 the Mutual Health Funds MBA. 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 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. Meanwhile, the nutraceuticals-and-cosmeceuticals segment saw a decline due to a shift in corporate strategy.   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. Both the nutraceuticals-and-cosmeceuticals segment and the health-benefits segment are nearing break-even point, indicating a positive trend towards profitability. 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 2023-2026 aims for revenues between €50.0 - €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 our operations. However, we anticipate the revenue to grow by 8.6% in 2024 to reach €41.58 million.   For 2023, we project the EBITDA to be €6.58 million with an EBITDA margin of 17.2%. We predict a steady increase in EBITDA and margin for subsequent years, with an EBITDA of €7.77 million and an EBITDA margin of 18.7% for 2024.   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/27631.pdf Kontakt für Rückfragen GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung +++++++++++++++ Date and time of completion of the research report: 28.08.2023 (15:00) Date and time of the first disclosure of the research report: 29.08.2023 (10:00) -------------------übermittelt durch die EQS Group AG.------------------- Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Original-Research: Health Italia S.p.A. - von GBC AG Einstufung von GBC AG zu Health Italia S.p.A. Unternehmen: Health Italia S.p.A. ISIN: IT0005221004 Anlass der Studie: Management Interview Empfehlung: Management Interview Letzte Ratingänderung: Analyst: Matthias Greiffenberger, Marcel Schaffer “[…] we aim to strengthen our position as a leader in the healthcare industry by prioritizing patient-centeredness, fostering innovation and embracing digitization.”    This management interview features Livia Foglia, the CEO of Health Italia S.p.A. GBC will soon initiate research coverage on Health Italia, and the company has recently published its guidance, setting a revenue target of 50 to 52 million euros for the year 2026. Additionally, they aim for an EBITDA of 12 to 14 million euros and a positive net financial position ranging between 15.0 and 16.0 million euros. Today, we have the opportunity to speak with Livia Foglia about the company's market positioning and future prospects.    GBC AG: How would you describe your business model to investors who are not familiar with your company, considering that you are the leader in the Italian market?   Livia Foglia: Our company, which is a group, operates in the healthcare and wellbeing market. We are an integrated operator offering a complete range of solutions to improve the quality and accessibility of healthcare, assistance, and welfare services. All the activities are grouped into different companies and business lines (Promotion and Support Services, Telemedicine, and Medical services) with significant opportunities for cross-selling strategies and synergies among them.   Through Health Italia, our holding company, we promote corporate and retail supplementary healthcare solutions to individuals and families in need of healthcare coverage, as well as to companies for their employees as a benefit. We also manage welfare services and flexible benefit plans for companies or public entities' employees.   Through our subsidiaries, Health Assistance and Health Point, we provide assistance services as a third-party administrator (service provider) dedicated to assisted individuals who have subscribed to a healthcare plan. We also offer innovative telemedicine and traditional medical services.   To support our business, we are constantly developing and improving our own digital platforms that help us manage activities and seize new opportunities.   Our distribution model is multichannel and based on different channels, with the main one being our network of promoters, consisting of approximately 2,000 individuals working throughout Italy. We also collaborate with Banks Branches. Health Italia is the only company in Italy to promote supplementary healthcare solutions through the banking channel. Additionally, we work with other external independent distribution networks interested in selling solutions for wellbeing and health protection.   GBC AG: Germany has a healthcare system with two pillars, namely Statutory Health Insurance (Gesetzliche Krankenversicherung, GKV) and Private Health Insurance (Private Krankenversicherung, PKV). In Italy, however, there is an additional pillar consisting of Mutual Aid Societies and Health Funds, which are voluntary health insurance schemes. Can you provide an overview of this system to investors who may not be familiar with it?   Livia Foglia: In Italy, the healthcare system is composed of three areas called Pillars: the first is represented by the Public National system, the second is represented by Funds, and the third consists of private insurance companies.   Funds include Mutual Benefit Companies and Healthcare Funds, which are intended to complement the public health service and provide support. These entities are non-profit and individuals who benefit from their services become members rather than clients. They are registered in the Registry of Healthcare Funds at the Ministry of Health, and the government provides significant tax benefits (deductibility) to support the second pillar.   GBC AG: Italy offers flexible benefits through customizable remuneration plans, enabling employees to choose from various options. How do these flexible benefits present interesting opportunities for your company?   Hi Welfare is the division specifically dedicated to corporate welfare services. Through our online platform, we manage flexible benefit programs for companies and public entities' employees. With this formula, employees can choose the composition of their individual welfare plan according to their needs. We provide seven benefit areas:   - Health care plans - Assistance: home care for the disabled or elderly - Leisure: culture, sports, travel - Supplementary pension - Education: school fees, education expenses, from kindergarten to college - Shopping vouchers - Season tickets for public transportation   Additionally, with the support of Health Point, we can offer medical services and telemedicine directly within company headquarters by setting up dedicated spaces for services, check-ups, or in-house health screening campaigns. This represents an important opportunity for our company from a dual perspective.   Protective strategy: By being able to satisfy customers' welfare needs beyond just health coverage, we prevent competitors from entering as their exclusive suppliers and potentially stealing our customers.   Proactive strategy: We have two access channels for the corporate target audience. Since a company may be interested in health coverage only or a comprehensive welfare plan, we have the ability to meet their demands in both cases. Furthermore, after acquiring the customer, we can employ a cross-selling strategy to offer additional services in which they were initially not interested.   GBC AG: Which primary markets does your company currently operate in, and how do you envision the future development of these markets? How will these market dynamics impact your company?   Livia Foglia: We operate in the healthcare market, where in 2020, the national healthcare expenditure reached 160 billion euros. Out of this amount, 122 billion euros were covered by public funds, while private individuals contributed 38 billion euros. Among the private expenditure, 34 billion euros were paid out of pocket by citizens, with only 4 billion euros being brokered by healthcare funds and insurance companies. The untapped portion of this market represents our main addressable market.   In recent years, intermediated healthcare spending in Italy has been steadily increasing, driven by a reduction in state intervention and the aging population. The growth in the second pillar can be observed through the data on entities registered in the Registry of Healthcare Funds at the Ministry of Health. These entities include Funds and Mutual Benefit Companies that enjoy tax benefits (excluding insurance companies). The number of beneficiaries and registered entities has risen from approximately 7 million in 2013 to 14 million in 2019.   The corporate welfare market in Italy has also experienced growth, with the adoption of welfare plans by companies for their employees doubling from 2017 to 2021. The average budget allocated to welfare measures has also increased, surpassing €1,000 in 2021.   Furthermore, on a global scale, since the pandemic in 2020, remote health consultations have significantly increased from 0.1% to 43.5%. It is projected that around 40% of patients will continue to use telemedicine, a substantial increase compared to the pre-pandemic level of 11%. In 2021, telemedicine accounted for 35.5% of the total revenue in the healthcare sector, amounting to 62.4 billion dollars. Experts predict a compound annual growth rate (CAGR) of 36.5% from 2022 to 2028, reaching a market value of $577 billion in 2028.   These data clearly indicate the opportunities within the sector. The presence of growing reference markets, as projected above, suggests an increase in turnover across all areas of our Group's business.   GBC AG: In light of the rapidly evolving technological landscape, how does your company stay ahead of emerging trends and leverage innovation to maintain its market leadership in Italy?   Livia Foglia: Significant technological investments are currently underway to further implement the ongoing digital transformation that has been in progress for several years. The Group is specifically investing in new software to serve the main business areas, including CRM (Customer Relationship Management), operations center management software, back-office analysis software, and cloud programs and hardware. This involves migrating to servers provided by major suppliers such as Oracle or Microsoft, benefiting from their computational capacity.   Furthermore, the entire resident server infrastructure is being replaced with cloud servers, which effectively addresses data protection concerns and enhances cyber security. An important investment is also being made to replace all existing firewalls, further bolstering security measures.   From a commercial perspective, a significant investment is being made to integrate the current sales channels with online access and explore distribution via modern online sales platforms. This initiative aims to enhance the company's presence in the online market and capitalize on the opportunities presented by e-commerce.   GBC AG: Looking ahead, where do you envision your company in five years?   Livia Foglia: The near future scenario for the health sector, particularly regarding supplementary and/or complementary health coverage, presents a significant challenge for the global community.   The healthcare landscape is undergoing transformative changes, exploring innovative business models, and creating fresh opportunities. Simultaneously, new players from the technology, consumer products, services, and other sectors are entering the vast global health marketplace, while consumers are increasingly embracing technology-enabled solutions.   In this evolving global health space, Health Italia is making substantial advancements by prioritizing patient-centricity, fostering innovation, and embracing digitization. Through these efforts, we aim to strengthen our position as a leader in the industry by adapting to the demands of diverse populations and varying needs. We are committed to ongoing investments that focus on technological innovation, service enhancement, and customer base consolidation.   GBC AG: Thank you very much for the interview.  Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/27405.pdf Kontakt für Rückfragen GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung +++++++++++++++ Date (time) of completion: 20.07.2023 (14:00) Date (time) of first publication: 25.07.2023 (12:00) -------------------übermittelt durch die EQS Group AG.------------------- Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.