Ferronordic: Aftermarket and Contracting Services shine - ABG
Q2 EBIT SEK 144m, 11% vs. ABGSCe 10% vs. cons
Expect 3-2% positive EBIT revisions ’21-’23e
6x EV/EBIT ’22e, 7-11% lease adj. FCF yield ’21-’23e
Group sales of SEK 1,590m (2% vs. ABGSCe at SEK 1,557 and -4% vs. cons at SEK 1,663m) for y-o-y growth of 32%. Russia/CIS grew 54% organically (-23% FX). New units sold amounted to 369 (ABGSCe at 403), up 25% y-o-y. EBIT was SEK 144m (11% vs. ABGSCe at SEK 130m and 10% vs. cons at SEK 131m) with EBIT margin of 9.0% (ABGSCe 8.3%, cons 7.9%), up from 8.7% in Q2’20 (6.3% in Q1’21). The EBIT beat was driven by stronger than expected performance in the aftermarket and contracting services segments (which have higher margins).
The share is up 11% L3M, driven by strong market statistics and a record Q1 report. On our estimates, the share is trading at 6x ’22e EV/EBIT, offering 7-11% lease adj. FCF yield for ’21-’23e. The company will host a conference call at 10:00 CET, dial-in SE: +46850558358, UK: +443333009266. The presentation can also be viewed via live stream at: https://tv.streamfabriken.com/ferronordic-q2-2021
Länk till analysen i sin helhet: https://www.introduce.se/foretag/ferronordic/Equity-research/2021/8/ferronordic---aftermarket-and-contracting-services-shine/
