* Orders +20%, sales +14%, adj. EBITA +10% vs. ABGSCe
* Enedo sees strong orders, growth and margin uplift
* Growth trend to continue for the rest of the year
Q1 results
Orders were up 17% y-o-y and 20% above our estimate. Sales grew 37% y-o-y and were 14% above our estimate. With a margin of 7.0%, 0.2pp below our estimate, EBITA adj. was 10% above our estimate. Importantly, Enedo, recently renamed Inission Power OEM, reported a book-to bill of 1.3x while sales grew 15% organically and adj. EBITA reached 3.8m (-2.3m), a margin of 3.1% (-2.8%). Lease adj. FCF was 26m, bringing the R12m figure to 115m, i.e. 180% of net income.
Estimate changes
The Q1 numbers in isolation imply EBITA adj. comes up 3%. Management stated that the solid book-to-bill should enable the growth the company is seeing to persist for the rest of the year, something we agree with. Furthermore, the company made progress with some potential acquisition targets in the quarter.
Company valuation
Over the past three months, the share has returned +37%, compared to the Nordic EMS peer median of +18% and the +2% of the OMX Stockholm Allshare. The share is currently trading at 13x-9.9x '26e-'28e P/E, compared to its 10-year historical median of 13x-8.9x and peers at 17x-14x.