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ABGSC Capital Goods Research ... (+2)
  • ABGSC Capital Goods Research
  • Adrian Gilani

A gradual process to improve margins

Earnings up y-o-y, but still undershot our estimates in Q2. Profitability issues should be mainly contained to '24e. Raising margins will be a gradual process.

ABGSC Capital Goods Research ... (+2)
  • ABGSC Capital Goods Research
  • Adrian Gilani

Q1 seasonally small, margin lift ahead

Q1 a seasonally small quarter, adj. EBITA of EUR -4m. Margin lift from Q2e following recent divestment. Share trading at 11-8x '24e-'25e EV/EBITA.

Eltel AB: 1 director

A director at Eltel AB bought 125,000 shares at 7.990SEK and the significance rating of the trade was 60/100. 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 years clearly show...

Adrian Gilani
  • Adrian Gilani

Eltel - Improvements in Q3, but challenges remain

Earnings improved in Q3, but many issues still to deal with ’22e-’24e EBITA up by 14-7% on raised margins Trading at 12-8x ’23e-’24e EV/EBITA

Adrian Gilani
  • Adrian Gilani

Eltel - Q3 marks a step up from H1’22

EBITA EUR 4.1m (+65% vs. ABGSCe 2.5m) Q3 implies 8-10% adj. EBITA upgrades for ’23e-’24e Trading at 14x ’23e EV/EBITA on pre-Q3 estimates

Adrian Gilani ... (+2)
  • Adrian Gilani
  • Max Bacco

Eltel - Organic growth up, margins down

Q3 report due Wednesday, 2 November Sales of EUR 204m, EBITA margin of 1.2% (-0.9pp y-o-y) ‘23e-‘24e adj. EBITA est. up 10-8%

Adrian Gilani ... (+2)
  • Adrian Gilani
  • Max Bacco

Eltel - Building FTTH in Finland for EUR 200m

Signs frame agreement worth EUR 200m… …to build FTTH in Finland A busy start for new CEO, but a lot remains

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - 2022 a lost year due to external factors

Sales and adj. EBITA 3% and 84% below ABGSCe ’22e-‘24e adj. EBITA down 44-10% Trading at 32-11x ‘22e-‘24e EV/EBITA

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - No escape from cost inflation

Adj. EBITA 84% below ABGSCe ‘22e adj. EBITA est down 20% on isolated numbers Trading at 19-10x ’22e-‘24e EV/EBITA

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Cost inflation is still a headache

Q2 report due Tuesday, 26 July We expect positive sales growth to continue… …but margins to still be under pressure, as in Q1

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Left in the dark after cancelled guidance

Q1 operatating EBITA margin of -1.3% (ABGSCe 0.2%) Estimate visibility low on cancellation of guidance Fair value range down to SEK 8-10 (10-18)

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Eltel removes guidance of improved margin ‘22

High sick-leave and cost inflation weight on margins Removes guidance for improved margin in ‘22e… …and extends long-term financial targets to ‘25 (’23)

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Waiting for the stars to align

Q1 report due on Wednesday, 4 May We expect a challenging quarter… …and margin improvements tilted to H2

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Volumes have reached a new baseline

Adj. EBITA in line with ABGSCe ‘22e-‘23e adj. EBITA raised by 2% Margin uplift will drive ’21-‘24e adj. EBITA CAGR of 34%

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - ’Operational Excellence’ completed

FY’21 operating EBITA margin of 1.8%... …and mgmt. guides for higher margin in ‘22e New CEO from Sep 2022 – Håkan Dahlström

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - 2022 looking brighter

Q4 report on Monday, 7 February We expect guidance for more margin improvements… …and more details on the Polish high voltage business

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Polish operations under re-valuation

Adj. EBITA at EUR 4.1m vs ABGSCe at EUR 7.5m ’21e-’23e adj. EBITA estimates down 29-15% 19x ’22e EV/EBITA

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Improving profitability in core markets

Adj. EBITA 45% below ABGSCe… …due to challenges in Polish High Voltage 15x ‘22e EV/EBITA on pre-report numbers

Max Bacco ... (+2)
  • Max Bacco
  • Olof Cederholm

Eltel - Long-term recovery story intact

Q3 report due Wednesday, 3 November Short-term headwinds continue, but positive outlook intact Preparing for M&A

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