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CTT Systems

CTT Systems

Systems for climate control in airplanes

CTT Systems develops climate control products for aircraft, including dehumidification systems to prevent condensation and humidifiers for crew and passenger wellbeing. CTT’s products are offered on the Boeing 787 and 777X as well as the Airbus A380 and A350. The company holds a majority market share within both dehumidification and humidification products and is a tier-1 supplier to the Boeing 787 and 777X.

The high profitability in CTT’s systems could attract new competitors, or result in the OEM suppliers providing their own solutions. While CTT’s relationships with Airbus and Boeing are highly valuable, they have little influence over pricing and therefore are sensitive to contract renegotiations. Almost all revenues are dollar-based, implying a strong currency sensitivity. The main risks entail a lack of market penetration due to low willingness among airliners to have dehumidifiers and humidifiers installed.

SEKm 2022 2023e 2024e
Sales 241 330 447
Sales growth (%) 59,2 37,3 35,4
EBITDA 100 133 166
EBITDA margin (%) 41,4 40,4 37,2
EBIT adj. 92 124 153
EBIT adj. margin (%) 38,1 37,6 34,2
Pretax profit 84 115 146
EPS 5,3 7,32 9,27
EPS growth (%) 369,9 38,3 26,6
EPS adj. 5,3 7,51 9,27
DPS 4,05 4,8 6,5
EV/EBITDA (x) 24,6 18,1 14,4
EV/EBIT adj. (x) 26,8 19,4 15,6
P/E (x) 37,2 26,9 21,2
P/E adj. (x) 37,2 26,2 21,2
EV/sales (x) 10,19 7,29 5,34
FCF yield (%) 2,2 3,8 3,4
Le. adj. FCF yld. (%) 2,2 3,8 3,4
Dividend yield (%) 2,1 2,4 3,3
Net IB debt/EBITDA (x) -0,1 -0,4 -0,5
Le. adj. ND/EBITDA (x) 0,1 0,4 0,5
SEKm 2022 2023e 2024e
Sales 241 330 447
COGS 0 0 0
Gross profit 241 330 447
Other operating items -141 -197 -281
EBITDA 100 133 166
Depreciation and amortisation -8 -12 -14
of which leasing depreciation 0 0 0
EBITA 92 121 153
EO Items 0 -3 0
Impairment and PPA amortisation 0 0 0
EBIT 92 121 153
Net financial items -8 -6 -7
Pretax profit 84 115 146
Tax -17 -24 -30
Net profit 66 92 116
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 66 92 116
EPS 5,3 7,32 9,27
EPS adj. 5,3 7,51 9,27
Total extraordinary items after tax 0 -2 0
Leasing payments 0 0 0
Tax rate (%) 20,8 20,5 20,6
Gross margin (%) 100 100 100
EBITDA margin (%) 41,4 40,4 37,2
EBITA margin (%) 38,1 36,7 34,2
EBIT margin (%) 38,1 36,7 34,2
Pre-tax margin (%) 34,8 34,9 32,7
Net margin (%) 27,6 27,8 26
Sales growth (%) 59,2 37,3 35,4
EBITDA growth (%) 162,3 34 24,6
EBITA growth (%) 243,2 32,2 26
EBIT growth (%) N/A 32,2 26
Net profit growth (%) 369,9 38,3 26,6
EPS growth (%) 369,9 38,3 26,6
Profitability N/A N/A N/A
ROE (%) 27,5 31,7 34,3
ROE adj. (%) 27,5 32,5 34,3
ROCE (%) 30,6 38,5 44,8
ROCE adj. (%) 30,6 39,4 44,8
ROIC (%) 29,6 38,1 45,2
ROIC adj. (%) 29,6 39 45,2
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 100 136 166
EBITDA adj. margin (%) 41,4 41,3 37,2
EBITDA lease adj. 100 136 166
EBITDA lease adj. margin (%) 41,4 41,3 37,2
EBITA adj. 92 124 153
EBITA adj. margin (%) 38,1 37,6 34,2
EBIT adj. 92 124 153
EBIT adj. margin (%) 38,1 37,6 34,2
Pretax profit Adj. 84 118 146
Net profit Adj. 66 94 116
Net profit to shareholders adj. 66 94 116
Net adj. margin (%) 27,6 28,5 26
SEKm 2022 2023e 2024e
EBITDA 100 133 166
Goodwill 0 0 0
Net financial items -8 -6 -7
Other intangible assets 80 85 92
Paid tax -13 -24 -30
Tangible fixed assets 43 39 38
Non-cash items 7 0 0
Right-of-use asset 0 0 0
Cash flow before change in WC 85 104 130
Total other fixed assets 2 2 2
Change in working capital -24 4 -28
Fixed assets 125 126 132
Operating cash flow 61 108 102
Inventories 96 126 157
Capex tangible fixed assets -2 -3 -6
Receivables 96 83 112
Capex intangible fixed assets -5 -10 -13
Other current assets 0 0 0
Acquisitions and Disposals 0 0 0
Cash and liquid assets 60 64 81
Free cash flow 54 95 83
Total assets 377 398 482
Dividend paid -10 -51 -60
Shareholders equity 269 310 366
Share issues and buybacks 0 0 0
Minority 0 0 0
Leasing liability amortisation 0 0 0
Total equity 269 310 366
Other non-cash items -6 0 0
Long-term debt 44 6 1
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 0 0 0
Total other long-term liabilities 3 3 3
Short-term debt 2 0 0
Accounts payable 59 79 112
Other current liabilities 0 0 0
Total liabilities and equity 377 398 482
Net IB debt -15 -58 -81
Net IB debt excl. pension debt -15 -58 -81
Net IB debt excl. leasing -15 -58 -81
Capital employed 315 316 367
Capital invested 255 252 285
Working capital 133 129 157
Market cap. diluted (m) 2468 2468 2468
Net IB debt adj. -15 -58 -81
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
EV 2454 2410 2387
Reversal of conv. debt assumed equity N/A N/A N/A
Total assets turnover (%) 68,2 85,2 101,6
Working capital/sales (%) 51,2 39,6 31,9
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) -5,4 -18,8 -22,1
Net debt / market cap (%) -0,6 -2,4 -3,3
Equity ratio (%) 71,4 77,9 76
Net IB debt adj. / equity (%) -5,4 -18,8 -22,1
Current ratio 4,16 3,43 3,13
EBITDA/net interest 12,6 22,6 25,6
Net IB debt/EBITDA (x) -0,1 -0,4 -0,5
Net IB debt/EBITDA lease adj. (x) -0,1 -0,4 -0,5
Interest coverage 11,6 20,6 23,5
SEKm 2022 2023e 2024e
Shares outstanding adj. 13 13 13
Diluted shares adj. 13 13 13
EPS 5,3 7,32 9,27
Dividend per share 4,05 4,8 6,5
EPS adj. 5,3 7,51 9,27
BVPS 21,49 24,77 29,24
BVPS adj. 15,09 17,97 21,9
Net IB debt/share -1,17 -4,66 -6,46
Share price 197 197 197
Market cap. (m) 2468 2468 2468
P/E (x) 37,2 26,9 21,2
EV/sales (x) 10,19 7,29 5,34
EV/EBITDA (x) 24,6 18,1 14,4
EV/EBITA (x) 26,8 19,9 15,6
EV/EBIT (x) 26,8 19,9 15,6
Dividend yield (%) 2,1 2,4 3,3
FCF yield (%) 2,2 3,8 3,4
Le. adj. FCF yld. (%) 2,2 3,8 3,4
P/BVPS (x) 9,17 7,95 6,74
P/BVPS adj. (x) 13,05 10,97 8,99
P/E adj. (x) 37,2 26,2 21,2
EV/EBITDA adj. (x) 24,6 17,7 14,4
EV/EBITA adj. (x) 26,8 19,4 15,6
EV/EBIT adj. (x) 26,8 19,4 15,6
EV/CE (x) 7,8 7,6 6,5
Investment ratios N/A N/A N/A
Capex/sales (%) 3 4 4,3
Capex/depreciation 0,9 1,1 1,4
Capex tangibles / tangible fixed assets 2,1 9,8 15,9
Capex intangibles / definite intangibles 11,5 14,4 16,8
Depreciation on intang / def. intang 5 7 7
Depreciation on tangibles / tangibles 7,92 13,71 16,01

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Media

CTT Systems - Company presentation with CEO Henrik Höjer
CTT Systems - Company presentation with CEO Henrik Höjer

Main shareholders - CTT Systems

Main shareholders Share capital % Voting shares % Verified
Tomas Torlöf 13.4 % 13.4 % 29 May 2023
SEB Fonder 9.5 % 9.5 % 29 May 2023
Rockwell Collins / Collins Aerospace 9.0 % 9.0 % 31 Mar 2023
ODIN Fonder 8.2 % 8.2 % 31 May 2023
Tredje AP-fonden 4.8 % 4.8 % 29 May 2023
Nya Jorame Holding AB 4.3 % 4.3 % 29 May 2023
If Skadeförsäkring AB 4.1 % 4.1 % 29 May 2023
Andra AP-fonden 3.7 % 3.7 % 29 May 2023
Nordnet Pensionsförsäkring 2.5 % 2.5 % 29 May 2023
Lannebo Fonder 2.1 % 2.1 % 29 May 2023
Source: Holdings by Modular Finance AB

Insider list - CTT Systems

Name Quantity Code Date
Kaj Ola Häggfeldt + 540 BUY 29 May 2023
Maria Vester + 283 BUY 26 May 2023
Peter Landquist + 512 BUY 26 May 2023
Markus Johan Berg + 504 BUY 26 May 2023
Henrik Höjer + 1 066 BUY 26 May 2023
Henrik Höjer + 2 000 BUY 9 May 2023
Henrik Höjer + 200 BUY 4 May 2023
Henrik Höjer + 800 BUY 3 May 2023
Henrik Höjer + 2 600 BUY 13 Feb 2023
Henrik Höjer + 300 BUY 8 Feb 2023

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