Look past this quarter

Q3 sales dip likely temporary

Profitable growth ahead

Progress in line with expectations

Q2 sales SEK 54m, EBIT SEK -1.0m, vs. ABGSCe 52m and -1.0m. Strong y-o-y result vs. easy comps, but also good on q-o-q basis. Solid financial position, management positive on H2 volumes.

Q2e more in line with Q1 than y-o-y comps

Q2e sales SEK 52m, up 26% y-o-y, adj. EBIT SEK -1.0m (-9m). Demand, sales, and profitability in positive trend. Likely to turn EBIT positive in H2, we estimate SEK 2.7m H2 EBIT.

Nexam Chemical Holding AB: 1 director

A director at Nexam Chemical Holding AB bought 100,000 shares at 3.500SEK and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two y...

Nexam Chemical - Life in plastic, it’s fantastic

Producer of additives that improve properties of plastic Long-term demand driven by sustainability trends Fair value range of SEK 5-10 per share

Northern Lights

Polygiene - Strong profitability in Q1

EBIT of SEK 10.3m in Q1, 24.7% EBIT margin Lower assumption on ViralOff offset by higher margins DCF valuation range of SEK 29-48 (30-48)

Polygiene - Reason to be optimistic for 2021

Stays Fresh is recovering Revisions made on ViralOff and FX headwind DCF valuation range SEK 30-48 (30-49)

Polygiene - Q4 sales slightly behind ABGSCe

Sales growth of 41% despite FX headwind Addmaster continues to impress DCF valuation range of SEK 30-49 (29-48)

Northern Lights

Nexam Chemical Significant potential on the horizon

Nexam Chemical continues to deliver on our forecasts and we are gaining confidence in its profitable growth journey. Growth remained impressive in Q4 at 46%, which we believe highlights the company’s significant potential beyond its 2022 sales target, driven by a good business case for the plastic industry to increase recyclability and better use of plastic materials. The stock is selling at a 2022e EV/sales of 2.6x. We have lifted our fair value to SEK13–17 (10–14).

Polygiene - A master plan added

Vertical integration of current supplier Addmaster EPS increase of 21% for 2022e DCF valuation range SEK 29-48 (23-41)

Polygiene - Agreement to acquire UK based Addmaster

Will create a global antimicrobial powerhouse Large potential synergies to be realized Transaction indicates R12 EV/EBITDA of 13.5x

Polygiene - No slowdown in order intake

Demand does not vanish with a vaccine Impressive profitability on show DCF valuation range of SEK 23-41 (23-43)

Northern Lights

Nexam Chemical A return to impressive growth

We find the Q3 report encouraging as the company has returned to impressive growth with 89% YOY sales growth in Performance Chemical providing confidence that the company can deliver on its 2022 sales target. EBITDA was positive for the third consecutive quarter, signalling that the company has now reached break-even volumes and we expect the gross margin contribution to drive margins higher into 2022. On its 2022 financial target, we have raised our fair value to SEK10–14 and we note that the s...

Polygiene - YKK Group – a partnership with potential

YKK is the market leader for zippers Italian market first out, more may follow Global zipper market CAGR of 4.1% ’21e-’26e

Polygiene - Ingredient brand with unmet demand

ViralOff a game-changer following COVID-19 We forecast a sales CAGR of 42% 2019-2022e DCF valuation range of SEK 23-43