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Inission: Somewhat soft top line, resilient margin - Nordea

Inission reported a Q1 with sales of SEK 232m (-4% versus our estimates) and adjusted EBIT of SEK 7.9m (+60% versus our estimate of SEK 4.9m). However, the deviation in adjusted EBIT was mainly driven by higher than anticipated other income which includes government support. We find it encouraging that the company reports that it saw an uptick in demand at the end of the quarter. However, the company still experiences component shortage and expect the situation to remain throughout 2021. At first glance we expect minor positive revisions on the back of the report and the share to outperform slightly today. Deviation table below.

Inission reported a Q1 with sales of SEK 232m (-4% versus our estimates) and adjusted EBIT of SEK 7.9m (+60% versus our estimate of SEK 4.9m). However, the deviation in adjusted EBIT was mainly driven by higher than anticipated other income which includes government support. We find it encouraging that the company reports that it saw an uptick in demand at the end of the quarter. However, the company still experiences component shortage and expect the situation to remain throughout 2021. At first glance we expect minor positive revisions on the back of the report and the share to outperform slightly today. Deviation table below.
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