Investors House reported Q4 revenues of EUR 1.73m, largely in line with our estimates. Net operating income was EUR 0.83m, 20% below our EUR 1.04m estimate. The Q4 operative result of EUR 0.51m was down 24% y/y and was burdened by investments in new business and increased headcount. More importantly, Investors House announced at the end of February that it will acquire Juhola Asset Management Oy, a Finnish real estate asset management company. We have incorporated the acquisition into our estimates from Q2 2021. The acquisition will increase the share of Services business sales to close to 60% of group sales. We believe the move is logical and will bring diversification and stability. The property holdings will still form over 50% of the company's value going forward, we estimate.
Combining our valuation methods, we derive a fair value range of EUR 5.7-8.0. As the company is in the midst of a transformation process, we emphasise a scenario-based sum-of-the-parts (SOTP) approach to give a better picture of where value will come from in the future and how each part of the company is valued. We also use a NAV SOTP to show the short-term NAV development and the value of asset revaluation potential.
Lähde: Finwire News