AKVA group (Hold, TP: NOK70.00) - Finishing old Land Based contracts
We expect Q1 EBITDA of NOK65m (8.3% margin), EBIT of NOK14m (1.7% margin), and order intake of NOK757m (0.96x book-to-bill, no quarterly consensus available). Ahead of the Q1 report (due at 07:00 CET on 3 May), we have made negative revisions to Q1 EBITDA for Sea Based and Digital, but positive revisions for Land Based. We reiterate our HOLD but have raised our target price to NOK70 (60) on higher peer group valuations, and higher SOTP and DCF valuations.Akva Group ASA is a Norway-based company engaged in the development, manufacture, marketing and installation of equipment and technology used in the fish farming and aquaculture industries. It is divided into three business areas, namely Hardware, Software and Recirculation. The Hardware area comprises such products, as feed barges, fish-farming cages, centralized feed systems, sensors, cameras, biomass estimation systems, light systems and net cleaning systems, which are sold under such brand names, as Polarcirkel, Wavemaster and Akvasmarts. The Software area provides software solutions for fish farming and seafood industries, and its products are marketed under the Fishtalk brand name. The Recirculation area offers land-based systems for production of fresh water and seawater fish spices using recirculation technology. As of January 24, 2013, Egersund Group AS held 87.42% of the Company. In April 2014, it acquired YesMaritime AS.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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