Hexatronic’s report for Q1 showed a substantial outperformance compared to our estimates. Net sales were 224 MSEK (53% growth of which 20% organic) and EBITDA reached 22 MSEK (est. 18 MSEK). On an adjusted basis, Hexatronic reported an EBITDA margin of 10.1% (last year 6.9%). The increase in volume is the main driver behind the margin expansion. We find it likely that the strong sales momentum will continue in the coming quarters. We find it positive that Hexatronic is expanding to future growth markets such as the USA and UK (new acquisition of OpticReach). We have adjusted our long-term growth estimates upwards somewhat because we see an attractive opportunity in these markets, where the fiber penetration is still very low. Our fair value estimate, in Base-case, is adjusted upwards to 23 SEK per share (18 SEK). We find the valuation of Hexatronic as attractive given the future growth prospects. Current levels imply an EV/EBIT 2015/16E of 9.3x when international peers trade at about 20-30x next year’s EBIT. Hexatronic is still not priced as a growth company and we argue that this will change. We estimate a fair value range of 11-33 SEK per share.