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Third party research

Serneke: Good order intake despite challenging times - Nordea

Serneke Group

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

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Serneke delivered a mixed set of numbers, with Q3 sales of SEK 2.1bn (up 4% y/y and 2% better than we had expected) and an EBIT margin of -1.9% compared with our 1.2% forecast. The margin fell short of our estimate partly due to the construction segment, which came in below our expectations On a positive note, order intake was SEK 2.6bn, above our forecast, suggesting a upward trend in the backlog that will boost sales. In total, we raise our sales estimates owing to better order intake than expected but lower our margin assumptions, leading to EBIT revisions of -3% for 2023E-24E. The share trades at low single-digit earnings multiples. Marketing material commissioned by Serneke.