Hexatronic Group: M&A master class

The Q3 figures came in almost exactly as expected, the earlier acquisitions in full drove the growth during the quarter. We believe the market continues to focus on Sweden, but that will change as the company will show organic growth in their main Nordic country during the next year. We find that BDI is a perfect example of Hexatronic’s strong M&A capabilities. We continue to believe that the market misses the significant opportunity that lies in the growth regions and puts too much focus on the short-term weakness in the Swedish market.

We view the latest acquisition of Opternus in Germany as value-adding. We raise our Base-case valuation slightly and see significant potential from today’s share price level.