<a id="bm-comp-92d0a854-9750-4a28-9757-e0e85190466c" name="bm-comp-92d0a854-9750-4a28-9757-e0e85190466c" class="BMCustomAnchor"></a><table><tr><td bm-component-id="92d0a854-9750-4a28-9757-e0e85190466c" style="vertical-align: top; width:100.000000%;"><ul><li>Sales SEK 42m and EBIT SEK -3.7m (vs. ABGSCe 36m and -2.6m)</li><li>Higher costs during the quarter, mainly due to relocation</li><li>Continued strong momentum in China</li></ul></td></tr></table><a id="bm-comp-141ecc30-a12c-4651-976b-e7f7aa2d93e7" name="bm-comp-141ecc30-a12c-4651-976b-e7f7aa2d93e7" class="BMCustomAnchor"></a><table><tr><td bm-component-id="141ecc30-a12c-4651-976b-e7f7aa2d93e7" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Sales beat, EBIT slightly below</h3><p>Sales came in stronger than expected at SEK 42m (+18% vs. ABGSCe 36m), +10% y-o-y. Coating Systems came in at SEK 27m (30.2m), driven by a delivery of an INLINECOATER 2000 during the quarter and Coating Services came in at SEK 10.4m (4.4m). EBIT came in at SEK -3.7m (vs. ABGSCe -2.6m), for a margin of -9% (ABGSCe -7%). The lower EBIT was partly due to higher operational costs than we expected during the quarter, with higher personnel costs including hired staff and elevated rental costs due to the company relocating its offices. But we estimate y-o-y underlying opex decreased by approximately SEK 6m. Additionally, FCF lease adj. came in at SEK -35m (vs. ABGSCe -33m).</p><h3 class="bm-h3">Estimates and outlook</h3><p>On numbers alone, '24e-'26e sales change by +6%, and EBIT adj. changes by SEK -1m. The company writes that a major focus going forward will be maintaining cost control. As a part of this work the company has taken several measures such as a reduction in personnel. Furthermore, the company writes that it sees continued strong momentum in China, particularly within Coating Services.</p><h3 class="bm-h3">Valuation</h3><p>The share has returned -6% L3M (SEK) (vs. peer median -0% and OMX Stockholm Allshare +9%), and is currently trading at -13x--17x '24e-'26e P/E on our pre-report estimates vs. the peer median of 24x-7x.</p></td></tr></table><a id="bm-comp-b0e3f85d-ef01-4d52-aa7b-e4b2016b8da3" name="bm-comp-b0e3f85d-ef01-4d52-aa7b-e4b2016b8da3" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b0e3f85d-ef01-4d52-aa7b-e4b2016b8da3" style="vertical-align: top; width:100.000000%;"><table id="bm-img-254cccfb-cc35-4686-80ac-784b976a8a75" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="254cccfb-cc35-4686-80ac-784b976a8a75" bm-img-original-height="529" bm-img-original-width="645" bm-img-svg="image:image_upload/85442_977b87d1-f267-4406-ba68-1234f5160fb3.svg" bm-img-width-hint="88.72%" id="bm-id-254cccfb-cc35-4686-80ac-784b976a8a75" src="https://abgsc.bluematrix.com/images/image_upload/85442_977b87d1-f267-4406-ba68-1234f5160fb3_645.png" svg="/nas/web/clients/abgsc/images/image_upload/85442_977b87d1-f267-4406-ba68-1234f5160fb3.svg" width="645" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier Estimates, Company Data</td></tr></table></td></tr></table>