C-RAD: Great Q1 cement '23 inflection point - ABG

Sales 26% better than ABGSCe with 36% organic growth
Order backlog should support high-20s organic growth in '23e
Valued at 12x '24e EV/EBIT, 60% below its peer group


Results

C-RAD delivered a stellar report. Sales were exceptional: 36% organic growth and 26% above ABGSCe, driven by strength across all regions. Most notably, APAC managed to grow 64% y-o-y. The strong sales suggest that installation access has notably improved, something which have plagued linac manufacturers for the past two years, and thus also held back C-RAD. C-RAD has a large order backlog, that kept growing in Q1 (up 5% organically) and beat ABGSCe by 5%. If conditions remain stable, as we expect, it has good potential to continue delivering strong results throughout 2023. Profitability was also strong, largely driven by the higher sales; EBIT was 6.4m, while we expected a loss of 5.7m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/c-rad/Equity-research/2023/5/c-rad---great-q1-cement-23-inflection-point/