SinterCast: 4m and 5m EE milestones likely delayed - ABG

EBIT SEK 6.5m (-43% vs. ABGSCe 11.4m), dip in cup sales
Somewhat disappointing EEs of 3.3m, but recovered in March
Trading at 16x ’23e EV/EBIT on pre-Q1 estimates


Q1 results

Sales came in at SEK 26.4m (-26% vs. ABGSCe 35.5m), down -6% y-o-y. EBIT was SEK 6.5m (-43% vs. ABGSCe 11.4m), and included no NRIs (ABGSCe 0m), for an EBIT margin of 25% (ABGSCe 32%). Net profit was SEK 6.3m (-49% vs. ABGSCe 12.2m). Engine equivalent (EE) production was slightly below our expectations (3.3m vs. ABGSCe 3.5m). The main reason for the underperformance vs. our estimates was that sampling cups sold came in at 32,900 vs. our estimate of 48,800. The company states that this does not reflect a lower future production demand, and is instead a result of order timing and inventory reductions following the normalisation of global supply-chains. While EEs of 3.3m was somewhat disappointing, production recovered in March, reaching 3.8m EEs, the third highest month on record.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2023/4/sintercast---4m-and-5m-ee-milestones-likely-delayed/