DnB Markets - YIT Oyj (YIT) YIT (Sell, TP: EUR1.40) - Q1 misses on EBIT and KPIs

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DnB Markets

Simen Mortensen

EUR 478.99 For Business Accounts Only

YIT (Sell, TP: EUR1.40) - Q1 misses on EBIT and KPIs

EBIT of EUR-8m was below our estimate and Vara consensus, and unit sales missed too. The inventory of unsold completed homes for sale continued to increase. The company states it will continue to focus on its capital releases, with sale of its stake in the Tripla shopping mall and reducing unsold inventory as the major moving parts. However, YIT’s markets are weak and its debt remains elevated. We reiterate our SELL and EUR1.4 target price, while we believe new equity might be also needed.

02/05/2024 1 EN

Underlying

YIT Oyj

YIT provides services for the construction sector. Co. has two segments: Housing and Business Premises and Infrastructure. The Housing segment is engaged in the development and construction of housing, holiday homes and entire residential areas, with a focus on its own developments. This segment is also engaged in property maintenance in Russia. The Business Premises and Infrastructure segment is engaged in the development and construction of offices, shopping malls, public facilities, assisted living facilities and other business premises; renovation projects; construction of roads, bridges, tunnels, rail and metro stations, ports and power plants; as well as road and street maintenance.

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FI0009800643 Nasdaq Nordic Helsinki Finland

Provider

DnB Markets

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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Analysts

Simen Mortensen

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YIT (Sell, TP: EUR1.40) - Q1 misses on EBIT and KPIs

YIT (Sell, TP: EUR2.00) - New ambitions, but with a condition

YIT (Sell, TP: EUR2.00) - Finnish recovery not started yet

KPIs and profits reflect cycle-lows

Edda Wind (Buy, TP: NOK30.00) - Well positioned

Valuation and market update

Petrobras FPSO delays may hit service volumes but lengthen cycle

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