Nolato - Strong guidance for Integrated Solutions
2% organic sales decline, 1% EBITA growth Adj. EBITA margin declined from 11. 8% to 11. 4% y-o-y 18x EV/EBITA ‘21e, on 4% FCF yield Q4 results Sales SEK 2,487m (-1% vs ABGSCe SEK 2,518m, -4% vs Infront consensus 2,580m) -2% organically (-5% ABGSCe).
Sales weaker than expected in Medical Solutions and Integrated Solutions, supported by 4% beat from Industrial Solutions. Integrated solutions declined 17% y-o-y as a result of the pre-announced c. 10% price cut of its HTP products (not a surprise).
Group EBITA was SEK 283m (+3% vs ABGSCe 275m, -2% cons 288m) on a margin of 11. 4% (ABGSCe 10. 9%, cons 11.
2%). Net Income SEK 211m (+3% vs. ABGSCe SEK 205m, 0% vs cons 211m).
Estimate changes and outlook On our figures the Q4 results alone would imply relatively unchanged estimates. However, strong guidance in Integrated solutions of sales above SEK 1bn in Q1 (ABGSCe at SEK 891m) could result in upside to estimates. We have estimated a relatively strong rebound in H1’21e, with organic growth of 18% in Q1, and 12% in Q2.
Final thoughts The share has declined 7% since the last report and is currently trading at the low end of our fair value range of SEK 800 – 860, and at 18x ‘21e EV/EBITA. More information expected during conference call at CET 15. 30 Dial-in: SE: +46 851 99 93 83 UK: +44 3333 009 267 US: +1 833 526 83 47 Webcast: https://tv.
streamfabriken. com olato-q4-2020.
