Report
Shana Gavron

LHV Institutional 'HansaMatrix (HMX1R LR) Company Update, May 27th, 2021'

* HansaMatrix is a Latvian manufacturing company active in the engineering and electronics sector. The Group owns modern, highly automated production and engineering facilities in Latvia and is seeking to expand its operations further. It mostly serves European business customers in the Baltics and Northern Europe.
* We valued HMX using a combination of income (discounted cash flow) and market (peer valuation using guideline public companies method) approaches. We have used the weighted average of values derived from the DCF and peer group multiples, applying different weights to each method. The values of other investments of HMX, including its stake in LightSpace, convertible loans, and loans to related parties, are added to the DCF derived equity value, using the latest fair value indications available.
* Overall, mostly due to the developments at LightSpace and its expected growing contribution to the performance and value of HMX, we decided to considerably upgrade our fair value range (‘FVR’) for the stock from the previous EUR 8.70-9.30 per share to EUR 15.00-16.40 per share. Major risks to our valuation include delay in the time needed for the final developments and commercialisation of the new volumetric 3D products by LightSpace, stiff competition between EMS companies, leading to lower than expected revenues and margins, and a potential deficit phase and related price increases of materials and components.This report contains a full set of financial forecasts and is useful for gaining an initial insight into the company. Please also refer to the tables and charts in the attachment.
Underlying
HansaMatrix AS

Provider
LHV PANK
LHV PANK

LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.

The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.

The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.

Analysts
Shana Gavron

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