Christian Berner Tech Trade: A glimpse of things to come - ABG

27% organic growth, margin suffers from one-offs
New management's efforts seem to have started having an effect
12x '23e adj. P/E vs. peers at 19x, fair value SEK 30-40


A strong quarter when adjusted for one-offs

In Q4 Christian Berner reported sales of SEK 248m, growing 29% y-o-y (27% organically), and order intake of SEK 258m, up 28% y-o-y. The strong growth was a result of high demand throughout the year, and the normalisation in delivery times seen during the quarter. EBITA came in at SEK 5m, corresponding to a margin of 2.2% (-2.3%), improving greatly y-o-y, but falling somewhat short of our expectations due to SEK 5m in expenses pertaining to a reduction in previously overestimated project revenue, as well as SEK 2m from higher material costs. Going forward, project contracts should be structured in a way that better parries cost inflation, and we therefore expect margins to improve. Adjusted for these expenses, the EBITA margin would have been 4.7%, exceeding our expectation of 3.8%.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/christian-berner-tech-trade/Equity-research/2023/2/christian-berner-tech-trade---a-glimpse-of-things-to-come/