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Västra Hamnen: Heliospectra - Preparing for rebound

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Västra Hamnen Corporate Finance has released a research update on Heliospectra AB following the release of the company's Q1 report last week. The company reported strong sales and a high gross margin, but a slowdown in order intake. In total, we leave our fair value interval unchanged for now, writes Västra Hamnen.
  

  • Strong sales but slowdown in order intake
  • Increased uncertainty following COVID-19 pandemic
  • We reiterate our fair value interval of SEK 5.50 – 8.30 per share

Heliospectra presented its Q1 report last week and the report was mostly in line with our expectations. The reported sales and gross margin exceeded our estimates; however, the order intake was at its lowest figure in several years. This might not come as a shock, considering the ongoing global pandemic that is discouraging companies from investing in new projects. Heliospectra is using the excess time wisely, by focusing on strengthening customer relationships and building inventory for when the rebound of the economy is to take place. Although the slowdown in order intake is troublesome, we keep our fair value interval unchanged for now. The full report is available here.

The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance's commissioned research offering.

This is a press release from Västra Hamnen Corporate Finance AB. 
Web: vhcorp.se
Twitter: @vhcorp_se

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