SinterCast: Series production back on track - ABG

• Q2e: We expect SEK 32.5m (+16%) sales and 9m EBIT (+64%)
• Pre-released figures prove Q1 drop in sampling cups temporary
• Outlook remains strong, fair value range SEK 100-160

Q2e: back to growth after soft Q1
The pre-announced Q2 figures of 3.7 engine equivalents and 49,500 sampling cups were largely in line with our estimates, and we estimate Q2 sales of SEK 32.5m, up +16% y-o-y, driven by a mix of series production and equipment sales growth, as well as favourable FX effects. In estimating SEK 1m in equipment sales in Q2, we express our belief that these will not pick up significantly until H2'23, where we estimate SEK 6m. Furthermore, we expect EBIT of SEK 9.0m (5.5m), for a margin of 28% (20%), with the margin increase mainly driven by higher revenue coupled with operating leverage. We estimate that this will translate into net income of SEK 9.8m (6.4m), up 53% y-o-y, for a margin of 30% (23%).

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/799e9761219a428a80f955a21c9d6e25/pdf/series-production-back-on-track.pdf