The target price resets 62% lower having been negatively impacted by the massive dilution now accounted for in our model. We have increased the number of shares to 9.6 billion from 2.96 billion to reflect the dilutive repercussions of the equity funding the company needs and will have to carry out to prop up the balance sheet and solve the cash problem to be able to finance its WC requirement. Although the operations are improving rapidly and the company will be in a net cash position soon, a dilutive financing operation will still happen.
We have cut our FY23 turnover forecast by nearly 15% to 7.82m and our FY24 turnover forecast by 5%. While the net result will remain in negative territory for both years, we are estimating a return to a positive figure in FY25. The estimated dilution, however, has further reduced the EPS-based valuation.
