Inission: Nordic EMS still going strong - ABG
• Expect continued growth in Q2e, but some margin headwinds
• Nordic EMS demand remains strong, but expectations are high
• Trading at 17x '23e P/E vs. peers at 14x, FVR SEK 50-70 (55-75)
Q2e: continued growth, but some margin pressure
In Q2e we expect sales of SEK 559m (347m), with Inission growing 22% organically and Enedo contributing SEK 130m. For EBITA we estimate SEK 33m (17m), i.e. a margin of 6.0% (4.9%), down sequentially from 7.9% due to USD headwinds, investments in new personnel dampening efficiency, and extremely tough q-o-q comps. We expect this will result in net income of SEK 20m (9m), i.e. a margin of 3.6% (2.5%). For lease adj. FCF we estimate SEK 27m (-52m), reiterating our belief that a NWC release is more likely to occur in H2'23e. During the quarter the company carried out a directed share issue of SEK 92m at a share price of SEK 57, with the stated aim of financing further growth. Including the SEK 119m tax deferral, we expect this will put the company's Q2'23 lease adj. ND/EBITDA at 1.6x.
Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/75154904033747719c6d1cfb6e7e353a/pdf/nordic-ems-still-going-strong.pdf
