Inission: Expect a bit of a slowdown for EMS players - ABG

Q4e: sales SEK 574m, -3% y-o-y, SEK 60m material sales in comps
Tougher comps and an EMS slowdown after a great '22-'23
Makes good acquisition, long-term and fair value intact: SEK 50-70


Q4e: material sales in comps hamper growth

For Q4, we expect sales of SEK 574m, down 3% y-o-y (-4% org., +1% FX). Note that Q4'22 sales included SEK 60m of material sales, of which we expect next to none in Q4'23. We estimate sales of SEK 437m (+0% y-o-y) in Inission, and SEK 136m (-10% y-o-y) in Enedo. For adj. EBITA, we estimate SEK 33m (28m), a margin of 5.8% (4.7%), resulting from a margin of 6.3% in Inission, and 4.0% in Enedo. We expect this will convert into SEK 18m (15m) of adj. net income, a margin of 3.1% (2.6%), and adj. EPS of SEK 0.80 (0.77).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/inission/Equity-research/2024/1/inission---expect-a-bit-of-a-slowdown-for-ems-players/