We find the Q3 report encouraging as the company has returned to impressive growth with 89% YOY sales growth in Performance Chemical providing confidence that the company can deliver on its 2022 sales target. EBITDA was positive for the third consecutive quarter, signalling that the company has now reached break-even volumes and we expect the gross margin contribution to drive margins higher into 2022. On its 2022 financial target, we have raised our fair value to
Q3 highlights. Sales of
Gaining confidence in >30% sales CAGR and margin gains. We believe the agreement with PET-foam manufacturer DIAB accounted for c15% of sales in Q3, corresponding to cSEK6.1m. Excluding DIAB from the quarter still indicates that the remaining business in Performance Chemicals was growing 30% in Q3, to us also signalling healthy growth within other verticals.
Estimate changes. We have lifted our 2020-2022e sales by 1% following the Q3 report and have lifted our EBITDA forecasts by 3% on average.
Fair value raised to
Best regards,
Viktor Trollsten |
https://news.cision.com/nexam-chemical/r/dnb-markets---nexam-chemical--a-return-to-impressive-growth,c3221649
https://mb.cision.com/Main/6364/3221649/1323155.pdf
(c) 2020 Cision. All rights reserved., source