Arrowhead initiates coverage of SICIT Group’s security

  • The independent operator based in New York suggests a fair market value between €  252.8mn and € 326.7mn, equal to a fair share value (fully diluted) between € 15.02 and € 16.23.
  • The target price would correspond to an increase in the value of the stock from 41% to 52%
  • Resilience of SICIT in the face of COVID-19, development of new product formations and set up of a new plant in China the factors behind the view

SICIT Group (the “Company”) announces that Arrowhead Business and Investment Decisions (“Arrowhead”), appointed by the Company, initiated coverage of the SICIT Group’s security.

Arrowhead is a New York-based, independent research and advisory firm which engages with select companies to profile and connect them to its investor network. Arrowhead will provide SICIT Group with investor relations and marketing services to communicate and participate in non-deal roadshows with interested international investors, expanding the company’s investor footprint into North America and other global capital markets.

The Arrowhead coverage initiates with a fair share value (fully diluted) between € 15.02 and € 16.03. This value is based on a fair market value between € 258.2mn and € 326.7mn*. Compared to the share price on October 15, 2020, the target price would correspond to an increase in value of 41-52%. According to the Due Diligence and Valuation Report, the reasons behind the view are to be found mainly in three factors.

First, the resilience of SICIT to the impact of the COVID-19 pandemic in the first half of 2020. In the period, in fact, the Company’s business did not suffer any significant impact, as shown by consolidated revenue up 9.4% YoY to € 35.5mn (vs € 32.5mn), adjusted consolidated EBITDA increased by 9.5% YoY to € 13.2mn (vs € 12.1mn) and an adjusted consolidated net profit increased by 14.5% to € 8.2 million (vs € 7.2 million). These results were in line with management expectations, although restrictions on mobility, transport and production, both upstream and downstream, inevitably affected some of the Company’s reference sectors**.

The second element is the development of two new product formations – granules and tabs – which will allow SICIT to enter new markets. These could represent a new sources of revenue, as the Company could also sell these products to new consumers, avoiding competition within its existing business and customer base.

The last factor is the identification of an opportunity to set up a new plant in China, which would enable SICIT to expand its manufacturing base close to other tanning industry districts. The new plant would be dedicated to the completion of finished products, using (as semi-finished product) hydrolized proteins that would be produced only in the production sites in Arzignano and Chiampo, Italy.

The full initiation report is available to download by clicking here. Future updates to Arrowhead’s research and other SICIT news can be accessed by subscribing to SICIT Group’s profile page on ABID’s proprietary platform at


*Coverage initiated on October 16, 2020. The share price was € 10.65 on October 15, 2020, for a market capitalization of € 217.3mn.

**Although the biostimulant area grew by 19.4% YoY to € 21.7mn in H1 2020, retardants fell by 2.1% YoY to € 8.5mn and fat by 1% YoY to € 3.38mn.