Pricer - EBIT beat plus stellar order intake
Sales and EBIT 10% and 61% vs. ABGSCe Expect high single digit estimates upgrades from cons. 32-19x ’21e-‘23e EV/EBIT on our unrevised estimates Q1 details Sales SEK 393m (9. 8% vs ABGSC 358m), Gross profit SEK 94m (8.
4% vs ABGSC 87m), EBIT SEK 17m (60. 9% vs ABGSC 11m), PTP SEK 22m (131. 5% vs ABGSC 10m), EPS SEK 0.
16 / share (91. 8% vs ABGSC 0. 08 / share).
Order intake was SEK 443m (+25% vs. ABGSC SEK 354m), representing y-o-y growth of 19%. Q1 thoughts Pricer had a strong start to 2021.
Sales and EBIT grew 74% and 134% y-o-y, respectively, driven by solid order intake momentum in recent quarters combined with further Best Buy order delivered. The 10% sales beat vs. our forecasts suggests that we had exaggerated the negative impact on Pricer’s operations from the distressed supply chain for Q1.
In turn, this explained the high EBIT beat. That said, Pricer has seen a negative impact from the supply chain issues on gross margins, which were 23. 9% in the quarter (vs.
31. 4% in Q1’20). Our forecast was 24.
3%. Encouragingly, Pricer sees high market activity on all its important markets. In addition, the order intake was distributed across many different customers, which we think suggests that the underlying order intake momentum continues to be strong.
Estimate revisions We believe that consensus will make high single digit estimates revisions for 2021-2022 on the back of the Q1 report. Based on the EBIT beat alone, our ‘21e EBIT would increase by 5%. On our unrevised 2021 estimates, Pricer’s share is trading at 32x EV/EBIT and 35x P/E.
Investor presentation at 13. 00 CET.
