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Motion Display: Strong gross margin driving another profitable quarter - Emergers

Third party research30.08.2024, 09.03

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
MODI reported Q2’24 sales largely in line with last year, at SEK 7.4m compared to SEK 7.6m in Q2’23. The gross margin increased by 6ppt due to a higher number of projects and fewer displays per project, resulting in a net profit of SEK 0.4m. Component build-up, however, turned cash flow negative for the quarter. The global retail index has sharply recovered, up 27% year-to-date, providing tailwinds for in-store marketing investments. The share has held up well following the +100% gain after the Q1’24 report. With continued support for a fair value of SEK 1.9-2.3, we believe the share has more potential, although investors should brace for some short-term softness in Q3’24.