First impression HANZA, Q4 2022: No slowdown
14 Feb 2023
Equity Research HANZA
This morning, HANZA reported its Q4 2022 earnings. Below are our first impressions of the report.
- HANZA reports an acceleration in organic growth to 29 percent from 26 per cent in the previous quarter. This was well above our estimate of 16 per cent.
- This time, the main positive deviation in our view is in the Main Markets segment with 27 percent organic growth. It is an encouraging sign against the back of e.g., the expansion into the German market in recent years.
- EBITA rose to SEK 63m (43) which was about ten per cent better than our estimate. The margin was only slightly below our expectations (see below). The negative deviation is likely explained by a higher effect from reinvoicing of rising material and energy costs than we had anticipated.
- HANZA says order intake is still very good on all markets. However, cash flow from operations declined to SEK 20m (60) from continued high levels of working capital and strong sales growth. The board has proposed a dividend of SEK 0.75 per share (0.50), in line with our expectations.
- The strong growth and outlook will likely entail a positive revision of our sales and earnings estimates.
Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, conducts business with regard to Corporate Finance and Equity Research in which areas it, among other things, publishes information about companies including analyzes. The information has been compiled from sources that Carlsquare considers to be reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be regarded as a recommendation or invitation to invest in any financial instrument, option or the like. Opinions and conclusions expressed in the analysis are intended only for the recipient.
The content may not be copied, reproduced or distributed to another person without the written approval of Carlsquare. Carlsquare shall not be held responsible for any direct or indirect damage caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments provide opportunities for value increases and profits. All such investments are also subject to risks. Risks vary between different types of financial instruments and combinations of these. Historical returns should not be considered as an indication of future returns.
The analysis is not directed to U.S. persons (as defined in Regulation S of the United States Securities Act and interpreted in the United States Investment Company Act 1940) nor may it be disseminated to such persons. The analysis is also not directed to such natural and legal persons where the distribution of the analysis to such persons would result in or entail a risk of a violation of Swedish or foreign law or constitution.
The analysis is a so-called Commissioned Research Report where the analyzed Company has signed an agreement with Carlsquare for analysis coverage. The analyzes are published on an ongoing basis during the contract period and for a usual fixed remuneration.
Carlsquare may or may not have a financial interest in the subject of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.
The analysts Niklas Elmhammer and Fredrik Nilsson do not own and are not allowed to own shares in the Company analyzed.