Scandi Standard (Buy, TP: SEK77.00) - CEO change in focus
Our Q2e adj. EBIT is below consensus (report due at 07:30 on 25 August), as we expect a still-weak Danish RTC margin, as well as a hit from the animal welfare situation in Sweden and the resignation of the CEO, Leif Bergvall Hansen. We expect the pandemic-related headwinds in the foodservice channel to continue to ease in H2, and in the Q2 presentation, we will listen for any comments from the new CEO related to a turnaround of the Danish RTC operation. We reiterate our BUY but have reduced our target price to SEK77 (80) on the estimate cuts.Scandi Standard is a supplier of chicken-based food products in the Nordic region. Co. offers a range of chilled and frozen products under brands such as KronfAY=gel in Sweden, Danpo in Denmark and Den Stolte Hane in Norway, as well as for private label. Co.'s customers are found in the retail, food service and food industry sectors. Co. has operations in Sweden, Denmark, Norway and Finland. The Swedish operations are conducted through the companies KronfAY=gel AB, SweHatch AB, AB SkAY=nefAY=gel and Bosarpkyckling. The Danish operations are conducted by Danpo A/S. The Norwegian operations are conducted through Scandinavian Standard AS. The Finnish operation is conducted through KronfAY=gel Oy.
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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