JonDeTech Sensors - Building for exciting 2024 - Mangold Insight Analysis

Mangold is updating its view on JonDeTech Sensors (JonDeTech). In the fourth quarter, the company delivered the first JIRS40 to Yoyon with additional products delivered in January. The delivery related to smart locks and dialog is conducted around extended uses and recurring orders. In addition, the company received a design win and orders from GMT for SEK 0.9 million regarding presence detection for smart refrigerators. The company is well on the way to commercializing JIRE10 and JIRS30 which will diversify revenue streams and, in our judgment, lead to progressively increased revenue.

The warrants of series TO2 were subscribed at 72.6 percent which injected SEK 15.4 million into the company before issue costs. All interest-bearing loans are repaid which improves cash flows given the absence of interest expenses in the future. The cash amounted to SEK 2.3 million at the end of the fourth quarter, which together with the cash from TO2 secures operation forward. We do see, however, that a successful outcome in TO3 is necessary given that the company is not profitable. Mangold is a financial advisor in the issue.

Mangold has valued JonDeTech using a DCF model and the fair value amounts to SEK 0.115 per share. We choose to maintain the price target of SEK 0.10 per share, corresponding to an upside of more than 200 percent.