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Balco Q3: Strong on orders, corroborates recovery in 2022 - SEB

Balco, the market leading provider of mainly glazed, energy-saving balconies, reported Q3 EBIT in line with our forecasts, despite sales being weaker-than-expected (burdened by Covid-19 effects). Most importantly, order intake more than doubled y/y, corroborating our recovery investment case. The order backlog is now back to more normal levels of closer to SEK 1.5bn. We are contemplating leaving our forecasts fairly unchanged and we reiterate our SEK 125 mid-point DCF value.

Balco, the market leading provider of mainly glazed, energy-saving balconies, reported Q3 EBIT in line with our forecasts, despite sales being weaker-than-expected (burdened by Covid-19 effects). Most importantly, order intake more than doubled y/y, corroborating our recovery investment case. The order backlog is now back to more normal levels of closer to SEK 1.5bn. We are contemplating leaving our forecasts fairly unchanged and we reiterate our SEK 125 mid-point DCF value.
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