Kebni: Broad support for long-term revenue target but cash an increasing concern - Emergers

KebNi reported an 80% revenue growth in Q1’23, to SEK 10.9m, largely due to sales of satellite antennas to IAI. Despite a variety of activities in 2023, the deferral of follow-on orders from Saab for volume series produced IMUs has exerted pressure on the share price. But with production start for Saab only weeks away, this should provide a trigger for Saab to unleash the next phase. Cost increase in Q1 was slightly higher than we had anticipated, likely necessitating a replenishment of the current SEK 19.4m cash reserve within the coming six months. But with a strong operational momentum we see a shareholder loan, a bank loan, a directed issue or a rights issue all as plausible alternatives. Now we continue to find support for a fair value to SEK 1.9-2.9 per share in 12-24m, but keep an extra eye on financing and the next step with Saab.

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