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Scanfil: Component prices are supporting net sales - Nordea

Scanfil raised its 2021 sales guidance midpoint by 5% but downgraded the EBIT guidance midpoint by 2%. Net sales have improved in Q3 due to good demand and high component prices. However, as higher component prices are passed on to the end customer, increased revenues do not improve clean EBIT respectively. As a conclusion, we upgrade 2021E revenue by 2% but downgrade EBIT by 1%. For 2021, we now forecast 16.4% y/y revenue growth and a 6.4% adjusted EBIT margin. Our fair value range for Scanfil remains at EUR 6.9-8.4, based on three equally weighted valuation approaches: DCF, EV/EBITDA and P/E. Marketing material commissioned by Scanfil Oyj.

Scanfil raised its 2021 sales guidance midpoint by 5% but downgraded the EBIT guidance midpoint by 2%. Net sales have improved in Q3 due to good demand and high component prices. However, as higher component prices are passed on to the end customer, increased revenues do not improve clean EBIT respectively. As a conclusion, we upgrade 2021E revenue by 2% but downgrade EBIT by 1%. For 2021, we now forecast 16.4% y/y revenue growth and a 6.4% adjusted EBIT margin. Our fair value range for Scanfil remains at EUR 6.9-8.4, based on three equally weighted valuation approaches: DCF, EV/EBITDA and P/E. Marketing material commissioned by Scanfil Oyj.
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