<a id="bm-comp-02b614c6-107c-42b8-9776-6b4a7e5916f0" name="bm-comp-02b614c6-107c-42b8-9776-6b4a7e5916f0" class="BMCustomAnchor"></a><table><tr><td bm-component-id="02b614c6-107c-42b8-9776-6b4a7e5916f0" style="vertical-align: top; width:100.000000%;"><ul><li><font color="#000000">H1e likely in line with guidance</font></li><li><font color="#000000">ONH is the growth engine, Sonans growth turns positive</font></li><li><font color="#000000">Fair value range of NOK 14-25</font></li></ul></td></tr></table><a id="bm-comp-718e2068-6c21-4e4d-abf6-29952600c426" name="bm-comp-718e2068-6c21-4e4d-abf6-29952600c426" class="BMCustomAnchor"></a><table><tr><td bm-component-id="718e2068-6c21-4e4d-abf6-29952600c426" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">H1e likely in line with guidance</h3><p><font color="#000000">We pencil in H1'25e revenues of NOK 229m, which is the mid-point of the guidance from the H2'24 report. This equals a y-o-y growth of ~8%, and implies ~11% y-o-y growth for the 2024/25e academic year (AY). We have fine-tuned our margin estimates, and see the H1 adj. EBIT margin at ~15.8%. Regarding the full AY for 24/25e, we see the Sonans adj. EBIT margin at ~8%, while we pencil in 24% for ONH, which yields ~15% at the group level. The company enjoys strong revenue visibility, with ~90% of its revenues the following year locked in during autumn, and the company is likely to comment on the autumn intake at its H1 report. For the AY'25/26e, we pencil in ~8% revenue growth and a group adj. EBIT margin of ~19%.</font></p><h3 class="bm-h3">ONH is the growth engine, Sonans growth turns positive</h3><p><font color="#000000">For the AY '24/'25e, we pencil inn ONH revenues of NOK 282m (+15% y-o-y) and an adj. EBIT margin of 24%. Lumi targets ~15% growth p.a. for AY '26/'27 (16% historically), and an adj. EBIT margin in the range 25-30% (26% in AY '23/'24, 27% historically). For Sonans, we estimate AY '24/'25 revenue of NOK 186m (+4% y-o-y, vs. -30% in AY '23/'24) and an adj. EBIT margin of 8%. We estimate that the trough has passed for Sonans, and the company targets ~5% revenue growth p.a. and an adj. EBIT margin of ~15% (~7% in AY '23/24, 20% historically). We argue that the targets are achievable, mainly driven by a reduction in job vacancies, lower grade inflation, and a structural undersupply of higher education admission places.</font></p><h3 class="bm-h3">Fair value range of NOK 14-25</h3><p><font color="#000000">We find a fair value range of NOK 14-25/sh. A peer valuation points to NOK 14-21/sh, while a DCF points to ~NOK 25/sh. Lumi is trading at a '26e/'27e EV/EBIT of ~13x/10x and a P/E of ~19x/14x, while enjoying strong earnings growth and relatively high barriers to entry.</font></p></td></tr></table>