Aquafil (AO) | Buy | Q1 results: margin delivery offsets a weak top line; guidance confirmed

研报英文原文证据摘录

Aquafil (AO) | Buy | Q1 results: margin delivery offsets a weak top line; guidance confirmed

Aquafil Buy | Target Price: EUR1.80

Company description Management

With c. EUR520m of revenues in 2025, Aquafil is a global leader in the production Chiara Mio, Chairwoman

and marketing (B2B) of synthetic fibres, which has developed and industrialised Giulio Bonazzi, CEO

a process (named ECONYL) to regenerate the raw material to produce nylon 6

from scrap. It is exposed to cyclical sectors (contract, automotive, residential, Key shareholders

textile), but its ESG angle represents a driver for outperformance. Listed in 2017 Free float 42.00%

through a SPAC, the company is still managed and controlled by the Giulio Aquafin (Mr Giulio Bonazzi) 58.00%

Bonazzi family.

Investment case Valuation methodology

Aquafil is a leading player in the production of nylon 6 polymers We value Aquafil using a DCF (9.8% WACC, 1.5% g, and 5.0x

and fibres. The business is highly geared toward the cycle as TV/EBITDA multiple).

product end-users include the automotive, commercial, Pure listed comparables do not exist. The closest panels one

residential, and textile industries. might select are made of: 1) companies manufacturing flooring

The company is, however, strongly geared to circular economy solutions, or 2) Italian industrial names with B2B exposure.

(through ECONYL, a process to regenerate raw material for nylon Difficult to value Aquafil based on its own multiples, given its

6 production from waste). This should be key for the company to still short history as a listed company.

outperform reference markets. Risks to our rating

Cash generation has historically been weak at Aquafil. In a Permanent changes in human behaviour (post-COVID) could