Serneke delivered a mixed set of numbers for Q4, with sales of SEK 2.4bn down 4% y/y and 13% better than we had expected, and an EBIT margin of -6.8% compared with our 1.2% forecast. The margin shortfall was partly due to the construction segment, which came in below our expectations. Serneke attributes the quarter's negative margin to construction inflation, structural changes implemented in the company and increased provisions for disputes in connection with older projects. Consequently, we take a more cautious stance on margins and lower our EBIT margin assumptions by 80 bp for 2023 and 30 bp for 2024; we now expect EBIT margins of 2.1% and 3.1%, respectively. Meanwhile, Serneke targets an EBIT margin of more than 6%. The share is trading at low-single-digit earnings multiples. Marketing material commissioned by Serneke.