CICC: Maintains "outperform" rating for FERRETTI (09638) with a target price of HK$36.

CICC releases research report, maintains "outperform industry" rating for FERRETTI (09638), with 2024 and 2025 revenue and EBITDA forecasts basically unchanged and a target price of HK$36. The bank believes that the changes in the group's management are normal phenomena and should not have a significant impact on FERRETTI's business. The bank reminds investors to pay attention to FERRETTI's performance in September, as there will be multiple boat shows and a potential interest rate cut by the Federal Reserve. Event: FERRETTI Group releases 1H24 performance update: Net revenue (excluding second-hand business) increased by 7.7% year-on-year to 611 million euros, while adjusted EBITDA increased by 15.9% year-on-year to 96.7 million euros, with a corresponding 15.8% profit margin (vs. 14.7% in 1H23 and 15.2% for full-year 2023). The report states that the company's new orders in 1H24 reached 514 million euros (a 10.4% decrease compared to 574 million euros in 1H23), mainly due to the drag from the European region's business, especially the integrated yacht business, due to high year-on-year base and weakening demand factors (customers usually purchase integrated yachts for immediate use, and colder weather negatively impacts customer demand). New orders in the Middle East and Africa benefited from local infrastructure improvements and the group's strong presence, with a 60.9% year-on-year growth in 1H24. New orders in the Americas region in 1H24 (28.1% year-on-year growth) turned positive, benefiting from a strong rebound in demand in 2Q24 (up 145.9% year-on-year). According to the company's disclosure, as of June 30, 2024, the group's backlog amounted to 1.496 billion euros, a 6.0% increase year-on-year, and the net backlog (total orders minus confirmed income) stood at 786 million euros, with 35% expected to contribute to 2024 revenue and the remaining 65% covering revenue beyond 2024. The bank mentioned that on August 29, 2024, after Tan Xuguang stepped down as chairman due to age, Jiang Kui was appointed as the new chairman of FERRETTI Group's board of directors, and the newly formed internal board committee also obtained the approval of the board of directors. On September 3, 2024, FERRETTI Group announced that Stefano de Vivo, after more than ten years with the group, decided to step down as chief commercial officer and executive director of the company due to personal reasons (to fully focus on his family business starting from November 1, 2024).