MOTION DISPLAY SCANDINAVIA AB Sales in Q1 was MSEK 6.1, in line with our estimate of MSEK 6. While peers battle supply chain disruptions and fail their sales target because of it, we note that Motion Display’s strategic purchases of key components has served the company well as it now stands ready to deliver on big orders with an inventory of components amounting to MSEK 7.4. Despite a contraction in order intake to MSEK 1.5 in the quarter, we see good reasons to keep our revenue estimate of MSEK 24 for the full year, as we expect a pickup driven by the high-potential US bar & restaurant market, which continues to support a fair value of
Strong sales highlight the first quarter
The report for Q1 2022 showed sales of MSEK 6.1, well above the MSEK 4.7 in Q1 2021, and just in line with our estimates of MSEK 6. This could be seen as a signal that Motion Display’s market is slowly returning to more solid ground. But we also note that order intake slowed down during the quarter. With MSEK 1.5 in order intake and an order book amounting to MSEK 2.7 at the end of Q1, we expect a deceleration in Q2. Although
Strained liquidity but no cause for panic
Cash amounted to MSEK 1.5 at the end of Q1, however, we believe that the strained liquidity situation is a consequence of the strategic choice to secure components as the global supply chains has gotten increasingly worse, which forced sector colleague Pricer to issue a profit warning earlier this spring. As Motion Display’s inventory of components now amount to MSEK 7.4, we believe they are well prepared to handle inflow of orders in coming months. Combined with the cost control that was implemented during H2’21, we don’t expect any additional fundraising in the near future.
Attractive long term entry levels but with elevated risk
As the stock price has stagnated at levels around
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