Pricer: Rising orders pave the way for higher earnings - ABG

Highest order intake in company's history
We lift '24e-'26e EBIT by 14% on higher sales and GMs
EBIT to recover well in 2024e, 11x '24e EV/EBIT


Strong improvements in profitability and margins

Pricer delivered a strong Q1 report. Sales came in at SEK 670m (+1% vs. ABGSCe), mainly driven by European sales (+34% y-o-y), as the US market saw revenue -19% y-o-y. Moreover, Q1 delivered a record-high order intake of SEK 972m (+37% y-o-y and +40% vs. ABGSCe), stemming from both new and existing customers across multiple geographical segments. Given the relatively modest contribution from announced orders, this was encouraging, suggesting a good recovery in demand after the recent slowdown. The gross margin improved to 19.1% (vs. 15.8% in Q1'23 and 17.7 in Q4'23) due to a favourable product mix and lower component costs. Given Pricer's efforts to enhance its gross margins more recently, we continue to stay positive on this trajectory, though we expect a slight sequential normalisation in Q2e. Amid the higher sales, improved gross margins, and lower opex (-11% y-o-y due to recent cost savings), EBIT increased to SEK 21m (vs. SEK -14m in Q1'23).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2024/4/pricer---rising-orders-pave-the-way-for-higher-earnings/