18:20 / 5 februari 2020
We have launched nine new companies on the Introduce platform since the beginning of December and now have close to 90 companies in total. There will be more interesting new companies from various sectors available on the platform over the coming months.
New companies since December 2019 on introduce.se:
Beyond the planned expansion, we are set to host our regular Introduce days, with the next event scheduled for 18-19 March at Haymarket where we expect 30-40 companies to attend. Be prepared to sign up for the event (invitations will be sent out soon). Our last event saw close to 400 participants sign up and we expect a fully booked event this time as well.
Given the growing number of companies on the platform, our recommendation is to use the screening function. This function allows you to identify high-dividend stocks, high sales growth stocks and other, similar categories. We have also added a few new functions to the platform; for example, you can now exclusively select initiation reports, in-depth reports and similar.
We have described the companies in a bit more detail below (more information is available at introduce.se). The following are short descriptions of some recently launched initiation reports (Dec-Feb).
Herantis Pharma (mcap 494,3 SEKm):
Herantis Pharma is developing disease-modifying treatments for Parkinson’s Disease (PD) and Breast Cancer-Associated Lymphedema (BCAL). The “holy grail” for PD is to develop a disease-modifying treatment to reverse this debilitating disease that affects approximately six million people globally; rNPV valuation suggests a range of SEK 39-13.
HANZA (mcap 603,0 SEKm):
HANZA is a contract manufacturer providing complete manufacturing solutions to customers. Production is based around five cluster sites where several different technologies are used to manufacture individual components, as well as assembly and product development. Based on EV/EVITA, HANZA is trading at a 20 % discount to peers; DCF valuation suggests a range of SEK 39-14.
BTS (mcap 4 771,6 SEKm):
BTS is a professional services company that helps the largest global corporations to implement already proposed strategies. The implementation process can be divided into a development phase, a programme phase and scalable software licenses. BTS has grown EPS with a 20% CAGR since 2001 and is estimated to continue outpacing the market with an EBITA CAGR of 17% during the forecast period. Considering the higher growth, valuation is in line with global professional service peers.
Atvexa (mcap 1 061,4 SEKm):
Atvexa is an educational provider focused on preschools, which account for ~85% of its facility base. The company’s growth strategy is based on acquisitions that are consolidated into a decentralised group of companies. The market for preschools is still fragmented, which suggests further room for consolidation. Equally weighted peer valuation, precedent transactions and DCF result in a valuation range of SEK 68-118, with possible M&A transactions not taken into account.
Fastator (mcap 1556,3 SEKm):
Fastator is an investment company focusing on real estate. Investments include three party owned companies: Offentliga Hus, Nordic PM, GenovaFastator and two wholly owned subsidiaries (Industrisamhället and Point Properties). The portfolio offers broad real estate sector exposure, including community services, logistics/warehouses, grocery retail and a property management service. Valuation implies a P/NAVPS discount of 1% with Offentliga Hus’ portfolio valued at a discount to other community service properties.
iZafe (mcap 80,6 SEKm):
iZafe offers personal care alarms and the Dosell internally-developed digital medicine dispenser. The company’s customers range from Swedish municipalities to large corporations like Skanska, Humana and Sodexo. By the end of ‘19e, approximately 250 Dosells were estimated to have been delivered and the total addressable market in Sweden is 200,000 patients. iZafe is trading at an EV/Sales of 7,0x–2,8x for ‘19e-‘21e, which is a premium compared to peers. A DCF scenario analysis suggests a valuation range of SEK 5.9-11.
Precise Biometrics (mcap 565,6 SEKm):
Precise Biometrics is a software developer with more than 20 years’ experience providing biometric algorithm solutions for mobile devices. The company is a leader in the development of fingerprint software. Its fingerprint software knowledge has also led to further software solutions in other biometric areas such as iris, voice, facial and geographical recognition systems. In terms of valuation, the company is trading at an EV/Sales of 7.2x-3.9x for ‘19e-‘23e based on our estimates, which constitutes a premium compared to peers. A DCF scenario analysis suggests a valuation range of SEK 2.5-0.8.
North Media (mcap 1,000.7 DKKm):
North Media is the market-leading distributor of print and digital commercial leaflets in Denmark. The company has four segments: FK Distribution, North Media Newspapers, North Media Online and BEKEY. FK Distribution is mainly a distributor of commercial leaflets to Danish households and this accounts for ~84% of revenue. Volumes are declining but North Media can likely increase prices due to strong market position and an anticipated increase in marketing expenditures. In addition, North Media is developing its digital offerings. Based on a DCF analysis the SOTP valuation range is DKK 33-52.
Net Insight (mcap 861,8 SEKm):
Net Insight is a media technology company focusing on media networks, resource optimisation and streaming solutions. Net Insight strives to be a leader in the media industry’s transition towards providing an improved media experience. Sales is estimated to grow with a CAGR of 5% in coming years and a return to positive EBIT is expected in 2020e. Valuation based on peers, SOTP and DCF results in a combined range of SEK 1.0-7.9.