Västra Hamnen: Hövding – Price hike to support margins

| 5 maj, 2021 | 0 kommentarer

Västra Hamnen Corporate Finance has published a research update on Hövding following its report for Q1 2021. Net profit came in roughly as expected despite a lower sales volume compared to our estimate. A price increase for the product supports our view that the company will turn profitable later in 2021, writes Västra Hamnen.

  • Net loss for Q1 as expected despite revenues below our forecast
  • 16 percent increased retail price will support gross margin
  • We maintain our valuation interval SEK 21.10 – 30.50 SEK per share

Hövding’s report for the first quarter of 2021 further confirms the company’s growth trajectory, despite Q1 normally being Hövding’s weakest and most difficult quarter to forecast. Net revenue, despite falling short of our forecasts, grew by 57 percent compared to the same period last year and reached SEK 33.2 million. The company also illustrated an impressive cost control by reporting operating expenses of SEK 14.8 million, well below our estimates. This cost control entails that net loss was almost in line with our estimates. We therefore make only a few minor modifications to our forecast model. Hövding is still on cue to turn profitable later in 2021, hence we maintain our valuation interval of SEK 21.10 – 30.50 per share.

The full report is available here.

The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance’s commissioned research offering.

This is a press release from Västra Hamnen Corporate Finance AB. 
Web: vhcorp.se
Twitter: @vhcorp_se

Kategori: Marknadsnyheter

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