Västra Hamnen: Magle Chemoswed - Beats our estimates

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Västra Hamnen Corporate Finance has released a research update on Magle Chemoswed following the company's full year report for 2020. The report showed significantly stronger figures than our estimates, and developments both within the CDMO business and the proprietary project pipeline look promising, writes Västra Hamnen.

  • Adjusted for lumpy royalties, the company shows strong growth
  • New development customers and promising pipeline
  • We keep our valuation interval SEK 42.70 – 57.30 per share

Magle Chemoswed ended 2020 on a strong note, comfortably beating our Q4 financial forecasts released less than a month ago. Thursday’s full year report documented a healthy underlying revenue growth that was somewhat obscured by the unpredictable swings in royalty payments. Growth in the CDMO business was markedly slanted towards development more than to manufacturing. This is a promising sign as new customers in development services tend to stay with the company for years. We retain our recently determined valuation interval for now, but chances are that our next revision will be upwards.

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. 
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Twitter: @vhcorp_se