<a id="bm-comp-c7c5caef-6675-413d-9cdf-52d26fc2fcdf" name="bm-comp-c7c5caef-6675-413d-9cdf-52d26fc2fcdf" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c7c5caef-6675-413d-9cdf-52d26fc2fcdf" style="vertical-align: top; width:100.000000%;"><ul><li>Sales -9<font color="#000000">% vs. ABGSCe, EBIT SEK 13m vs. ABGSCe 17m</font></li><li>Organic growth of 18%, strong gross margin 60% (57% LY)</li><li>We estimate opex includes ~SEK 2m for acquired and licensed tech</li></ul></td></tr></table><a id="bm-comp-b2c43c7a-3a88-4db2-8c91-95b2f55dfee1" name="bm-comp-b2c43c7a-3a88-4db2-8c91-95b2f55dfee1" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b2c43c7a-3a88-4db2-8c91-95b2f55dfee1" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q3 results</h3><p>Sales came in at SEK 49m (-9% vs. ABGSCe 54m), +19% y-o-y (+18% org.). Growth was driven by the continued recovery at the second-largest customer and growth among smaller customers. The gross margin was 60% (57% LY), as the raw-material cost increases flagged earlier in the year have not materialised. EBIT was SEK 13m (vs. ABGSCe 17m), for a margin of +27% (ABGSCe +31%). Other external costs included the expensed purchase price for a newly acquired technology and the full annual minimum licence fee for a licensed technology. The amounts are not disclosed, but we estimate them at roughly SEK 2m in total based on the step-up vs. the H1 run rate.</p><h3 class="bm-h3">Estimates and outlook</h3><p>On numbers alone '26e-'28e sales and adj. EBIT change by -2%. On the EU process, member states are voting on the Commission’s proposal by written procedure between 7 and 21 October, and I-Tech says it has prepared to legally challenge a negative decision.</p><h3 class="bm-h3">Valuation</h3><p>The share has returned +10% L3M (vs. peer median +11% and OMXSSMAC -9%), and is currently trading at 14x-8x '26e-'28e P/E on our pre-report estimates vs. the peer median of 32x-16x. T<font style="background-color:#ffffff;"><font style="background-color:#ffffff;"><font color="#212529">he company will host a</font> <a data-bm-trackable="false" href="https://www.youtube.com/watch?v=xQoHSBotduo" style="color: rgb(0, 123, 255); box-sizing: border-box; text-decoration: none; font-family: Arial, "Unifont Calibri", "Unifont Helvetica", "Unifont Gotham", "Unifont Arial", Unifont !important;" target="_blank">presentation</a> <font color="#212529">of the Q3 results at</font></font></font> <font color="#000000"><font style="background-color:#ffffff;"><font style="background-color:#ffffff;"><font style="background-color:#ffffff;">13:00 CET.</font></font></font></font></p></td></tr></table><a id="bm-comp-25d77640-a653-4670-be51-22a55a3410ed" name="bm-comp-25d77640-a653-4670-be51-22a55a3410ed" class="BMCustomAnchor"></a><table><tr><td bm-component-id="25d77640-a653-4670-be51-22a55a3410ed" style="vertical-align: top; width:100.000000%;"><table id="bm-img-be76b9ee-1718-49fa-96c8-eef12e382bcf" 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="be76b9ee-1718-49fa-96c8-eef12e382bcf" bm-img-original-height="513" bm-img-original-width="646" bm-img-svg="image:image_upload/99499_7c53d710-391e-4978-a9e4-f4cd89bffb88.svg" bm-img-width-hint="88.72%" id="bm-id-283cdb52-c2b3-4547-b2fa-cafc3a145cb2" src="https://abgsc.bluematrix.com/images/image_upload/99499_7c53d710-391e-4978-a9e4-f4cd89bffb88_645.png" svg="/nas/web/clients/abgsc/images/image_upload/99499_7c53d710-391e-4978-a9e4-f4cd89bffb88.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>