Kendrion - Q123 – good revenue growth at lower margins
Kendrion’s Q123 results were mixed with good revenue growth of 5% but an unexpected decline in EBITDA of 7%. Gross margin was under pressure due to Kendrion passing on material price inflation at no margin and lower direct engineering revenues in Automotive. We have adjusted our estimates only slightly downward as the positive energy transition trend is still intact. Our estimates for FY23–25 reflect a revenue CAGR of 7%, an EBITDA CAGR of 18% and a normalised EPS CAGR of 27%. The unweighted average of our three valuation methods points to a fair value of €23.0 per share.Kendrion develops, manufactures and markets high-quality electromagnetic systems and components. Co.'s electromagnets are used all over the world in products such as lifts, door locking systems, industrial robots, medical equipment, electrical switchbox systems, diesel engines and airconditioning systems. Co.'s activities are performed in four business units: Industrial Magnetic Systems, Industrial Drive Systems, Passenger Car Systems and Commercial Vehicle Systems.
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