SinterCast: 9% y-o-y growth despite temporary stoppage - ABG

Sales up 9% y-o-y, EBIT margin 44% (25%), partially due to FX
Estimates down 3% on FX, '23-'26e adj. EBIT CAGR of 14%
Strong installation pipe into '24-'25, trading at 13-10x EV/EBIT


Q4: Temporary dip in EEs due to production stoppage

Sales were SEK 36.0m, up 9.4% y-o-y, driven by production of 3.7m (3.5m) EEs and 60.1k (53.8k) sampling cups. Installation revenue was SEK 2.1m (2.1m). Adjusted for a five-week stoppage unrelated to SinterCast CGI at one major production line, EEs would have been 4.0m. EBIT was SEK 15.7m (8.1m) for a margin of 43.6% (24.6%), driven by higher revenue, gross margin and lower opex, SEK 3.6m of which was related to positive revaluations of currency hedges. The company announced a dividend of SEK 6.10 (5.50 ordinary, 0.60 extraordinary), for a yield of 6%. SEK 2.6m (0.4% of shares) of the previously announced 5.0m in share buybacks remain.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2024/2/sintercast---9-y-o-y-growth-despite-temporary-stoppage/