15:00 / 29 juni 2020
We have launched fourteen new companies on the Introduce platform since the beginning of February and now have close to 100 companies in total. There will be more interesting new companies from various sectors available on the platform over the coming months.
New companies since February 2020 on introduce.se:
Beyond the planned expansion, we are set to host our regular ABGSC Investor Days, with the next event scheduled for 7 September. The attending companies can be found here.
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 (Feb-Jun).
24Storage (mcap 573 SEKm):
24Storage, a real estate company focusing on self-storage in the Stockholm, Gothenburg and Malmö region. 24Storage was founded in 2015 with the vision to digitize the self-storage industry and today its consumer offering is permeated by digital solutions. The company has become the second-largest self-storage operator with a market share of 11%. Given our ‘20e NAVPS and P/EPRA NAVPS multiple range, we arrive at a valuation of SEK 31-54 per share.
Amasten (mcap 3 991 SEKm):
Amasten owns, manages, acquires and develops properties in Swedish growth municipalities. The portfolio consists of rental apartments (90%) and commercial properties (10%) in northern and central Sweden. Amasten has its own, new production concept, which is to build apartments using pre-fabricated modules produced in China with Swedish project management. Given our ‘20e NAVPS and P/EPRA NAVPS multiple range, we arrive at a valuation of SEK 31-54 per share.
BankNordik (mcap 979 DKKm):
BankNordik is headquartered in the Faroe Islands. It holds between 40% and 50% of the market. The bank also has smaller operations in Denmark and Greenland. It operates its own non-life insurance company in the Faroe Islands. BankNordik’s dividend policy is to pay out 20-40% of net profits while it targets a CET1 ratio of 18.5%.
BHG Group (mcap 8 697 SEKm):
BHG Group, the Nordic market leader within online home improvement. Based on structural trends and a cautiously positive outlook for the Nordic housing market, we expect the online channel to grow by a CAGR of 11% (2019-25e), reaching close to SEK 40bn by 2025e. To capture the long-term potential of BHG Group, we derive our valuation range from three-stage DCF model scenarios. Scenario 1 gives a fair value of SEK 96 per share while scenarios 2 and 3 yield SEK 59 and SEK 121, respectively.
Bublar Group (mcap 308 SEKm):
The Bublar Group is a conglomerate currently consisting of four companies, which is leveraging its proprietary technology within extended reality (XR), augmented reality (AR), motion capture and visual effects (VFX), with the ambition of becoming the global leader within the space. We utilise a sum-of-the-parts valuation in order to determine a fair value range for Bublar Group, given that the company’s segments differ quite a bit. We find a fair value range of SEK 2.8-7.9 per share.
Den Jyske Sparkasse (mcap 695 DKKm):
DJS has a market share of well below 1% in Denmark with lending exposure concentrated in the middle part of Jutland. The bank has 19 branches, ~350 employees and 97,000 customers. Exposure is tilted towards agriculture (~17%) but DJS is seeking to reduce its exposure to agriculture as well as to real estate (below 10%). DJS has introduced an intention of a 25% dividend pay-out at some point in the future depending on its capital accumulation.
Fiskars Group (mcap 840 EURm):
Fiskars Group, a consumer brand company with market-leading brands in its respective segments. The company has experienced headwinds since 2017, due to several external and internal factors that are now starting to turn in the right direction. The underlying brands in the portfolio, such as Fiskars, Iittala, Rörstrand and Royal Copenhagen, have been around for centuries and they possess immense brand awareness in their respective markets. We arrive at a 2020e valuation range of EUR 8.2-14.0.
Gaming Innovation Group (mcap 513 NOKm):
GIG is a young company that sells products to a large part of the online gambling value chain. It sells marketing services to other gambling operators and sells its own software platform and sportsbook to other B2C operators, as well as land-based casinos, enabling them to offer casino and sports betting services. Today, the company has pivoted towards making its business leaner. For example, it shut down its game development operations to narrow the focus and improve cash flow. It also sold its business-to-consumer (B2C) brands Rizk, Guts, Kaboo and Thrills in a EUR 31m deal to Betsson.
GreenMobility (mcap 142 DKKm):
GreenMobility is a flexible (“free float”) city-car rental company. Its business model is to lease Renault Zoe cars, which are fitted with tailored software that allows users to open and rent cars using their mobile phones. GreenMobility supports cities by: 1) lowering traffic intensity, 2) reducing parking pressure, 3) increasing potential for green urban areas, and 4) decreasing gas emissions/air pollution. GreenMobility has 91,000 users at the end of H1’20e and expects to have 5-7 operational European cities by the end of 2020. We set a price range of DKK 30-90.
Maha Energy (mcap 1376 SEKm):
Maha Energy is an oil and gas producer with 41.8mill boe of 2P reserves. It operates two fields in Brazil, Tie and Tartaruga, with combined net production of 3.2kboe/d, and has minor operations from the LAK field in the US. The company strategy is a combination of production, pursuing portfolio upside through production drilling/appraisal and some modest near-field exploration activity. Assuming a USD 45/bbl oil price, we estimate a NAV of SEK 16.2/share.
MT Højgaard Holding (mcap 896 DKKm):
MT Højgaard Holding (MTHH) dates back to 1918, and today is a full-service construction consortium that solves different types of tasks within its four subsidiary companies. The operational companies are MT Højgaard (53% of revenue in ’20e), Enemærke & Petersen (34% in ’20e), Scandi Byg (7% in ’20e) and Ajos (6% in ’20e); the goal is to create a one-stop shop for construction, development, design/engineering and renovation projects. We set a price range of DKK 50-130 based on a three-stage DCF analysis.
OrganoClick (mcap 514 SEKm):
OrganoClick is a Swedish first-mover cleantech company that develops and produces functional materials based on environmentally friendly fibre chemistry. As such, the group is positioned at a sweet-spot of converging industry trends. We have constructed three different DCF model scenarios in which only the penetration levels of current production tests in the NWT segment are changed. With penetration levels between 20%-80% and a WACC of 11.4%, we arrive at a valuation range of SEK 3-12 per share.
Trianon (mcap 3 902 SEKm):
Trianon, a real estate company focusing on rental apartments and social infrastructure properties in the Malmö region. We argue that rental apartments are attractive with their regulated rents and low vacancy risk due to apparently inexhaustible demand. We argue that Trianon’s book value/sqm of SEK 23,300 is low if we compare with rental apartment peers (Amasten, Heba, John Mattsson, K2A and K-fast) with an average at SEK 32,800/sqm. Given our ‘20e NAVPS and P/EPRA NAVPS multiple range, we arrive at a valuation range of SEK 70-140/share.
Vestjysk Bank (mcap 2 571 DKKm):
Vestjysk bank has a market share in Denmark of ~1% with lending exposure concentrated in Jutland while the branch network stretches from the west coast over the middle of Jutland to the east. The bank has ~370 employees. Exposure is tilted towards agriculture but this has now been reduced to 15% of lending and guarantees.