Inission: much better y-o-y, Enedo holds back - ABG

* Orders +8%, sales +1%, adj. EBITA -9% vs. ABGSCe* Sees recovery amongst customers, Enedo profitable from Q1* 14% organic growth and margin expansion in Inission segmentQ3 resultsOrders were up 24% y-o-y and 8% above our estimate, continuing to show strength after three quarters of solid order growth. Sales grew 14% y-o-y and were 1% above our estimate. With a margin of 6.1%, 0.7pp below our estimate, EBITA adj. was 9% below our estimate. EBITA included non-recurring items with a negative margin impact of 0.7pp pertaining to cost saving measures in Enedo, which have now been concluded. The Inission segment performed well, growing 14% organically and increasing its adj. EBITA margin by 1.4pp y-o-y, while Enedo continued to struggle. There is a conference call at 09:00 CET: webcastEstimate changesThe Q3 numbers in isolation imply EBITA adj. comes down 2%. Management states that it sees a clear recovery amongst customers in both segments, and expects Enedo will be back to profitability in Q1 now that the organisational changes have been concluded.Company valuationWhile adj. EBITA was 9% below our estimate, orders were good and sales in line, and we think that the more important takeaway from the report was the significant y-o-y improvement in the Inission segment and management's forecast of positive EBIT in Enedo from Q1. Over the past three months, the share has returned +12%, compared to the Nordic EMS peer median of -1% and the +5% of the OMX Stockholm Allshare. The share is currently trading at 14x-8.4x '25e-'27e P/E, compared to its 10-year historical median of 13x-8.7x and peers at 18x-12x.