Hexatronic Group: News from across the Atlantic

Research Update

2017-11-21

07:30

Hexatronic delivered yet another strong report with an organic uptake of roughly 27%, spot-on to our estimates. The EBITDA margin came in slightly lower than expected affected by the sales mix and supporting purchases of duct. Improved capital efficiency boosted the cash flow significantly. One of the most exciting news in the report, at least according to us, was that Hexatronic’s MATRIX system is now approved by a major US telecom operator. The carrier that Hexatronic collaborates with will roll-out more than 700k homes-past annually the coming years. In Sweden, the roll-out rate is approximately 300k per year. Our estimated Fair Value, in Base-case, per share is adjusted upwards to 72 (64) SEK per share, due to higher assumed future long-term margins and reduced NWC requirement projections.

KL

HA

Kristoffer Lindström

Henrik Alveskog

Disclosures and disclaimers

Premium Plan required to unlock

Unlock companies to access

more high quality research.