Diskusjon Triggere Porteføljer Aksjonærlister

Kitron (KIT)

Elektronikk
#3224

Norne opprettholder kjøpsanbefaling, nedgraderer kursmål til 24 (fra 27):

Strong revenue growth to continue, but margins are lower

Kitron’s 2Q report was very strong driven by record revenues that was somewhat offset by the lower margins. We keep our Buy recommendation on the share at a lower TP of NOK 24/sh (27) after some estimate and valuation assumption changes.

Stronger 2Q figures on high revenue growth

Kitron’s 2Q revenues came very strong at NOK 1.6bn (up 11% QoQ) and topped our estimate by 10%. EBIT was at NOK 100m, 7% above our expectation of NOK 93m, and implied a similar EBIT margin of 6.3% to what we had in our model (6.5% estimated). Notably, internal balance sheet adjustments had a strong negative impact on EBIT (NOK -9m), thus underlying margin was better. These adjustments tend to even out over time.

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Strong demand and order backlog; supply chain issues receding

Demand from customers remains very strong, while the company notes an easing of supply chain constraints going into 2H22. Order backlog is further increased to NOK 4.9bn at the end of the quarter vs. NOK 2.3bn a year ago. Ex. BB Electronics, the order backlog rose 70% YoY.

Higher 2022 revenue outlook, while the upper EBIT bound lowered

On the back of strong customer demand, the company revised its guidance for 2022 with revenues expected at NOK 5.7-6.1bn and an EBIT of NOK 330-400m. This reflects higher revenue expectations compared to previous guidance of NOK 5.2-5.8bn, while the targeted EBIT range is narrowed from the previous NOK 330-430m. The midpoint of both the revenue and EBIT range translates to an EBIT margin of 6.2% vs 6.9% a quarter ago. The company indicated the top of the range a quarter ago might have been too optimistic and market reality was with lower margins on top of very strong revenues.

Buy maintained at lower TP of NOK 24/sh (27)

We maintain our Buy recommendation on Kitron share following the 2Q report. We have made some adjustments to our estimates and valuation leading to lower TP of NOK 24/sh (27). Still, the demand looks extremely strong and we believe there is upside in the figures and share price over the next 12 months.

Analyst

Tomas Skeivys, CFA

+370 676 35 144

tomas.skeivys@norne.no

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5 Likes
#3225

Går sin gang

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image2474×1227 363 KB

2 Likes
#3226

Joa. Og selv om det i store linjer har gått en glad gang, føles de siste mnd litt seige. Tålmodighet er en dyd, men også en prøvelse.

#3227

Kitron: KIT - Issue of shares under share incentive program

#3228

Kunne noen vært behjelpelige med å finne P/b for Kitron basert på q2? Og gi evt input dere bruker?

#3229

Kitron ASA - Ny aksjekapital registrert

#3230

Kitron: Ferroamp signs production agreement with Kitron

3 Likes
#3231

Kitron to host Capital Markets Day

#3232

Note kom med tall i dag og blir interessant å se hvordan KIT gjør det i forhold til Note :

Financial performance Q3 (July-September)

Sales increased by 36% to SEK 930 (685) million. Adjusted for acquisitions and currency effects, organic growth was 18%. Approximately 6% of sales consisted of re-invoicing of extraordinary cost increases on electronic components.
Operating profit was SEK 57 (64) million. Adjusted for doubtful debt of SEK 30 million and for currency revaluations of operating assets and liabilities in foreign currencies, underlying operating profit increased by 37% to SEK 92 (67) million.
Operating margin was 6.2% (9.4%). Adjusted for the doubtful debt, currency revaluations of operating assets and liabilities in foreign currencies and adjusted for re-invoicing of extraordinary cost increases on electronic components, essentially without margin, the underlying operating margin increased by 0.4 percentage points to 10.2% (9.8%).
Profit after financial items was SEK 47 (59) million.
Profit after tax amounted to SEK 40 (48) million, corresponding to SEK 1.37 (1.68) per share.
Cash flow after investments amounted to SEK -59 (-49) million, or SEK -2.04 (-1.71) per share. The quarter’s cash flow includes the SEK -20 million payment for the acquisition of NOTE Herrljunga.

3 Likes
#3233

Enjoying the tailwind of massive order backlog, easing supply chain issues and FX moves

Our Buy recommendation stays on Kitron share at a lower TP of NOK 23/sh (24). We believe the 3Q report and especially the CMD scheduled for December 13th will be positive triggers for the share, as the massive order backlog combined with supply chain issues easing and favourable FX moves should lead to solid figures.

Solid 3Q to be reported next week

Kitron will release its 3Q22 report next week on October 26th. We estimate NOK 1.4bn in revenues and NOK 91m in EBIT (6.5% margin). This is a massive growth YoY, largely due to the acquisition of BB Electronics at the start of this year, but also due to healthy organic growth. 3Q is a seasonally weaker quarter for the company, thus figures are lower QoQ. We see EPS at NOK 0.28 vs NOK 0.11 reported a year ago and NOK 0.34 in 2Q22.

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2022 guidance probably rather easy to meet on FX moves

KIT’s latest guidance for 2022 was for NOK 5.7-6.1bn in revenues and NOK 330-400m in EBIT. We believe that the continuous easing of supply chain issues, massive order backlog and much stronger USD and EUR vs NOK will help the company to beat at least the mid-point of the guided ranges. Therefore, we stand above the midpoints with our revenue estimate lifted to NOK 6.1bn (3% above midpoint) and EBIT to 388 (6% above midpoint).

CMD on December 13th with long-term financial goals in focus

Kitron will host its CMD on December 13th, which was postponed from earlier this year on the back of uncertainties related to the war in Ukraine. We take it as a yet another positive to our case, as the management is comfortable talking about long-term goals. We believe this is due to the improved visibility, as the supply chain issues eased and large pent-up demand from customers (order backlog close to NOK 5bn at mid-year). Therefore, we are keen to see the long-term growth goals (EUR 1bn in revenues in sight?) and profitability estimates.

Buy retained at a bit lower TP of NOK 23/sh (24)

We reiterate our Buy recommendation on Kitron’s share at a tad lower TP of NOK 23/sh (24). It looks like 2022 guidance will be easy to meet and that the visibility is good enough for the company to come out with positive messages in the CMD. Massive order backlog and FX help the case. The key risk with 12m horizon in our view is the increasing likelihood of a global recession. Therefore, we’ll be closely watching the company’s order intake/backlog in the quarterly updates. However, we do not see this risk likely to materialize in the near term and on the contrary, see positive triggers in the weeks and months to come.

Analyst

Tomas Skeivys, CFA
KIT_2022-10-19.pdf (524,4 KB)

3 Likes
#3234

Står lite om økte kostnader, som jeg vil tro også gjelder for Kitron. Den organiske veksten har jo også vist en negativ trend.

Tipper de vokser innenfor forsvars- og elektrifiseringssegmentet fremover, mens omsetningen innen øvrige områder vil falle eller være stabile.

#3235

We estimate NOK 1.4bn in revenues and NOK 91m in EBIT (6.5% margin)

De sier det, bare ikke i så mange ord. Btw, marginen er stort sett dårligst i Q3.

#3236

Oppnår de 6.5% margin tror jeg de skal være veldig fornøyd. Føler Norne er i overkant positive.

#3237

Sukk, må visst i gang å lage et nytt regneark. :slight_smile:

#3238

Med Kitron, så kan du stort sett stole på guidingen. Jo lengre uti året du kommer, jo mer sannsynlig er det at de treffer midt i guidingen eller over når det kommer til omsetning og margin. Så må man justere for at Q3 er dårligere og Q4 bedre. Når jeg var investert her, så stemte dette såpass bra at mine egne estimater ofte var innen 1% av det faktiske EBIT.

1 Like
#3239

Kitron: Allokering av opsjoner

#3240

Kitron: Q3 2022 - Doubled revenue in very strong market

1 Like
#3241

Kitron: Q3 2022 - Doblet omsetning i svært sterkt marked

2 Likes
#3242

Kan leve med dobling av omsetning ( 28% organisk vekst) og oppdatert guiding :slight_smile:

2 Likes
#3243

Damn, de parkerte min tvil iallefall. Skal vel opp mot 25kr på dette vil jeg tippe.

Litt merkelig at omsetning innen defence fortsetter sørover? Burde jo vært mye å hente der nå.