Alimak (Hold, TP: SEK125.00) - Order beat, earnings miss
We view the Q1 results as soft despite strong order growth of 16% organically YOY, with all divisions contributing to the beat. A miss on adj. EBITA was driven by lower sales and a weak Facade Access (FA) margin of 9.5% due to legacy projects and lower utilisation. Alimak stated that investment decisions for new tall buildings would continue to be postponed, and legacy projects phased out through 2025. We reiterate our HOLD, but have cut our target price to SEK125 (140), having lowered our 2025–2027e adj. EBITA by c3%.Alimak is engaged in the design, development, manufactue, distribution and servicing of vertical access solutions predominantly in rack-and-pinion, and also traction technologies. Co. supplies industrial elevators, hoists and work platforms based on rack-and-pinion technology. At the core of Co.'s products are the Alimak and Hek rack-and-pinion elevator, hoist and work platform brands as well as Heis-Tek traction elevator brand. Co. operates in the following operational segments: Construction Equipment; Industrial Equipment; Rental and After Sales.
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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