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Inission: Destocking effects in the EMS industry - ABG

Q3e: sales SEK 511m, up 17% y-o-y, adj. EBITA margin 6.9% (4.8%)
EMS demand remains, but backlogs shrink due to destocking effects
Inission trading in line after sector drop, fair value SEK 50-70


Q3e: We expect a solid quarter with continued y-o-y growth

For Q3e we expect sales of SEK 511m, up 17% y-o-y (13% org., 4% FX); the organic component mainly driven by the Inission segment and the FX component mainly driven by the Enedo segment. We estimate adj. EBITA of SEK 35m (SEK 21m) for a margin of 6.9% (4.8%), with the Inission segment contributing SEK 29m (7.6% margin), and the Enedo segment contributing SEK 7m (5.0% margin). We expect this will convert into adj. net income of SEK 21m (SEK 4m), a margin of 4.1% (0.9%), and adj. EPS of SEK 0.94 (0.17). Our lease adj. FCF estimate is SEK 33m (SEK 139m), anticipating limited NWC changes.
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