SinterCast: Small revenue hiccup, but EBIT impresses - ABG
Prel. Q4 figures: EE 3.7m, revenue SEK 37m, EBIT SEK 15.4m
Maintenance stoppages on major production line in Nov-Dec
Enters '24 with stronger-than-usual installation pipeline
Q4e: Some preliminary figures released
Today, SinterCast released some preliminary Q4'23 and full-year '23 figures. Engine equivalents came in at 3.7m (3.5m), somewhat lower than our estimated 4.0m, as one major production line suffered from maintenance stoppages in November and December. This was unrelated to CGI or SinterCast. Because of this, revenue came in at SEK 37m, up 13% y-o-y but 6% below our estimate. Nevertheless, EBIT impressed, as the company announced a full-year margin of 31.3%, implying Q4 EBIT of SEK 15.4m (8.1m) for a margin of 41.6% (24.6%). The strong Q4 EBIT is likely in part explained by revaluations of currency derivatives, as the USD dropped vs. the SEK in the quarter. We estimate this will convert into SEK 12.1m of net income (7.9m), or EPS of SEK 1.71 (1.11). The company also announced that the board has proposed an increased ordinary dividend.
Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2024/1/sintercast---small-revenue-hiccup-but-ebit-impresses/
