Mrkt BUZZ Risk Intelligence: Agreement with DSV and DHL on the hook

Equity Research, Risk Intelligence

Risk Intelligence is making clear progress with its push for the LandRisk Logistics application. It was recently announced that a licence had been signed with DSV, the world’s third-largest transport and logistics operator. The company is also in advanced talks with DHL Freight. This is clearly positive given the size of both organisations which creates the preconditions for many user accounts. They also provide good references for future sales.

Last week (Friday, 20 January 2023), Risk Intelligence announced the signing of a licensing agreement with the Belgian branch of the global transport and logistics giant DSV in the Road business segment (DSV). With the LandRisk Logistics solution, DSV will have access to real-time security threat visualisations specific to selected routes and support for planning detours.

The value of the agreement with DSV is not public. However, as stated in the latest quarterly report, the company estimates that the average revenue per customer per year on LandRisk Logistics will amount to DKK 0.3 million. This figure can be a good reference point for assessing the contract’s annual value.

As announced on 23 January 2022, Risk Intelligence also has an ongoing dialogue with DHL Freight. However, the deal is not yet closed. In our latest research update, we expect Risk Intelligence to reach revenues of DKK 27 million, corresponding to a growth of 26 per cent. We also anticipate an EBITDA result of DKK 0.6 million. A fair value per share is estimated to DKK 6.7. That corresponds to a 2023 EV/Sales multiple of 4.9x.

At the same time, the stock has developed strongly and is currently trading just below the MA200. In case of a break on the upside, the share can quickly continue up to the next level around DKK 3.7.

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