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Hövding: Fair result in challenging quarter (Västra Hamnen)

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Västra Hamnen Corporate Finance has released a research update on Hövding Sverige AB following its report for Q3 2019. The report shows lower sales than expected following logistical issues related to the launch of Hövding 3, but also lower manufacturing cost and a potentially higher price per unit. We maintain our fair value interval, as we want to see more established sales and margin figures before revising our valuation range.

  • Sales negatively affected by logistical challenges
  • Lower manufacturing cost might boost margins
  • We maintain our fair value interval of SEK 20.10 – 29.30 per share

This week Hövding released its report for the third quarter and it came with mixed results. A setback in the product logistics flow of Hövding 3, combined with the phasing out of the previous Hövding 2.0, resulted in sales coming in at SEK 18.6 million, down 38 percent compared to Q3 last year. The net profit came in at SEK -17.3 million with cost components relating to the product launch affecting the results. A total of 11 199 Hövding units was sold in the quarter, with 5 587 being the Hövding 2.0 and 5 612 being the Hövding 3. At the date of the launch the total orderbook amounted to approximately 17 000 units at a value of approximately SEK 26 million.

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