Equity research Enrad: Continued strong order intake bodes well for 2024

Enrad AB (“Enrad” or “the Company”) has received two new orders  with a total value of SEK 3.6 million regarding cooling and heating systems for properties in Norway with delivery expected during Q3 2024. During the second half of April, Enrad received orders totaling approximately SEK 10 million, of which about half each from the Norwegian and Swedish markets.

In our latest research update on May 2, 2024, we raised our fair value for Enrad’s shares from SEK 5.0 to SEK 8.1 after the company presented a strong Q1 2024 report. Enrad impressed us with net sales of SEK 7.6 million in Q1 2024, marking a 55% growth compared to Q1 2023. Additionally, their order intake exceeded expectations. We anticipate that Q2 2024 will also be robust for the Company, and the recent orders suggest a promising Q3 2024 as well.

We expect interest rate cuts in the second half of 2024 to boost the Swedish market, especially for heat pumps, which faced a downturn last year. Furthermore, the EU’s F-Gas Regulation, effective January 29, 2024, is likely to drive a shift towards natural refrigerant chillers, an area where Enrad is well-positioned.

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