INVISIO: Reiterates strong outlook - ABG

• Q2 order beat but sales miss & FX make us cut EBIT -5%
• Momentum is good and positive guidance was reiterated
• Trading at 36x 2023e EV/EBIT and 31x 2024e

ATH order book should support strong growth in H2e
INVISIO delivered another strong growth quarter in Q2, growing sales organically 63% and order intake up 155% y-o-y (28% ex announced larger orders). This resulted in a record high order book of SEK 790m, up 26% from Q1. However, sales came in 7% below company collected consensus in Q2 and with gross margin slightly below expectations and opex in-line, the -23% EBIT miss affects 2023e negatively.

All in all, we expect INVISIO to grow organically by 20-30% in H2 on tougher comps but supported by the strong order book where the company said that >50% will be delivered during the rest of 2023. Looking at the historical relationship between H2 sales vs the Q2 order book, INVISIO has been able to deliver more than the order book value in Q3-Q4 sales, while we this year estimate an 80% conversion, which should provide some upside risk to estimates. We also note that INVISIO increased its inventory by SEK 50m in Q2 vs Q1, or +33%, to prepare for deliveries in H2, which is also supportive for near-term growth.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/8d2d669f65b840f4980755b7e47c0308/pdf/reiterates-strong-outlook.pdf