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DistIT Q1: Cleaning-up stock-in-trade - SEB

DistIT Group, the distributor of IT/Tech and small domestic appliances, as well as EV charging boxes, reported Q1 sales of SEK 613m (4% ahead of our estimates and 1% ahead of consensus). Adding back NRIs totalling SEK 20m, mainly from inventory write-downs, adjusted LBIT came in at SEK 4.5m, which compares to our SEK 2m EBIT forecast (consensus: LBIT of SEK3m). Anticipating limited earnings revisions, we reiterate our DCF-based mid-point value estimate of SEK 17 per share.

DistIT Group, the distributor of IT/Tech and small domestic appliances, as well as EV charging boxes, reported Q1 sales of SEK 613m (4% ahead of our estimates and 1% ahead of consensus). Adding back NRIs totalling SEK 20m, mainly from inventory write-downs, adjusted LBIT came in at SEK 4.5m, which compares to our SEK 2m EBIT forecast (consensus: LBIT of SEK3m). Anticipating limited earnings revisions, we reiterate our DCF-based mid-point value estimate of SEK 17 per share.
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