Equity Research - 19 August 2021 12:50 CET
SinterCast
EBIT deviation from delayed installations
- Q2: EBIT of SEK 7.2m (-43% vs. ABGSCe at 12.6m)
- '21e EBIT -14% on Q2 numbers, -3% for '22e-'23e
- Fair value range of SEK 132-240(137-248) per share
Delayed installation activity causes Q2 miss
SinterCast reported Q2 sales of SEK 28.2m (-16% vs. ABGSCe at 33.6m), up 51% y-o-y. The deviation was mainly from equipment sales of SEK 0.2m (ABGSCe 3.3m), as travel restrictions caused installations to be delayed until H2'21. However, management says full-year installation revenues should still be in line with past averages. Series production sales were strong, but at SEK 27.8m were slightly below our estimate of SEK 29.7m. EBIT was SEK 7.2m (-43% vs ABGSCe at 12.6m), for a margin of 26% (ABGSCe 37%). In absolute terms, the deviation on the EBIT level is roughly the same as on the top line, meaning the main reason for the miss was lower sales, which had a high drop-through. The EBIT margin was also hurt by a lower gross margin, but in absolute terms, this effect was negligible. Management mentioned that series production volumes, although strong, are still being held back by customers facing component shortages and therefore not producing at normal levels.
EBIT down on revised installation estimates
We lower EBIT for '21e by 14% (SEK 6m in absolute terms) and by 3% for '22e-'23e, mostly from the lower Q2 numbers and revising our equipment sales estimates. We also move some installation revenues from H2'21 into '22e to account for the risk of more delays. Despite our cuts, we maintain that the outlook is positive, as we argue customers will need to re-stock inventories once component shortages are behind us, which bodes well for series production revenues.
Trading at 18x '22e EV/EBIT; fair value range lowered
On our estimates, the share is trading at 18x '22e EV/EBIT. We lower our fair value range to SEK 132-240(137-248) per share based on our estimate cuts. As the company has a history of paying out ~100% of EPS as dividends, we derive our fair value range by discounting future dividends, assuming a range of 8-12% for the cost of equity.
Analyst(s): adrian.gilani@abgsc.se, +46 8 566 286 92 ofelia.aspemyr@abgsc.se, +46 8 566 286 31
SEKm | 2019 | 2020 | 2021e | 2022e | 2023e |
Sales | 117 | 95 | 112 | 145 | 163 |
EBITDA | 43 | 25 | 39 | 59 | 71 |
EBITDA margin (%) | 37.2 | 26.6 | 34.7 | 40.9 | 43.7 |
EBIT adj | 45 | 21 | 35 | 55 | 67 |
EBIT adj margin (%) | 38.6 | 22.1 | 31.2 | 38.0 | 41.2 |
Pretax profit | 40 | 22 | 33 | 55 | 67 |
EPS rep | 6.80 | 3.12 | 5.58 | 9.10 | 10.79 |
EPS adj | 7.49 | 3.04 | 5.58 | 9.10 | 10.79 |
Sales growth (%) | 32.8 | -18.1 | 17.2 | 30.0 | 12.4 |
EPS growth (%) | 47.4 | -54.0 | 78.6 | 63.0 | 18.6 |
Source: ABG Sundal Collier, Company data
Reason: Post-results comment
Company sponsored research
Not rated
Estimate changes (%) | |||
2021e | 2022e | 2023e | |
Sales | -6.4% | -1.6% | -1.8% |
EBIT (rep) | -14.5% | -3.2% | -3.3% |
EPS (rep) | -6.3% | -2.8% | -2.9% |
Source: ABG Sundal Collier | |||
Share price (SEK) | 19/08/2021 | 148.0 | |
Fair value range (per share) | 132-240 | ||
Capital Goods, Sweden | |||
SINT.ST/SINT SS | |||
MCap (SEKm) | 1,049 | ||
MCap (EURm) | 103 | ||
Net debt (EURm) | -3 | ||
No. of shares (m) | 7.1 | ||
Free float (%) | 99 | ||
Av. daily volume (k) | 8 |
Next event | Q3 report: 27 Oct | |||||||||||
Performance | ||||||||||||
220 | ||||||||||||
200 | ||||||||||||
180 | ||||||||||||
160 | ||||||||||||
140 | ||||||||||||
120 | ||||||||||||
100 | ||||||||||||
80 | ||||||||||||
60 | ||||||||||||
Aug 18 | Oct 18 Dec 18 | Feb 19 | Apr 19 Jun 19 | Aug 19 | Oct 19 | Dec 19 | Feb 20 | Apr 20 | Jun 20 | Aug 20 | Oct 20 Dec 20 | Feb 21 Apr 21 Jun 21 |
SinterCast | OMX STH PI |
1m | 3m | 12m | |
Absolute (%) | -1.9 | 1.5 | 1.4 |
Source: FactSet | |||
2021e | 2022e | 2023e | |
P/E (x) | 26.5 | 16.3 | 13.7 |
P/E adj (x) | 26.5 | 16.3 | 13.7 |
P/BVPS (x) | 8.74 | 7.24 | 6.69 |
EV/EBITDA (x) | 26.3 | 17.1 | 14.2 |
EV/EBIT adj (x) | 29.3 | 18.3 | 15.1 |
EV/sales (x) | 9.12 | 6.98 | 6.23 |
ROE adj (%) | 34.6 | 48.7 | 50.7 |
Dividend yield (%) | 3.8 | 6.1 | 7.3 |
FCF yield (%) | 2.9 | 4.5 | 5.9 |
Lease adj. FCF yld (%) | 2.8 | 4.4 | 5.8 |
Net IB debt/EBITDA | -0.7 | -0.6 | -0.4 |
Lease adj. ND/EBITDA | -0.9 | -0.7 | -0.5 |
Please refer to important disclosures at the end of this report
This research product is commissioned and paid for by the company covered in this report. As such, this report is deemed to
constitute an acceptableDocumentminordownloadednon-monetarybybenefitLinn(iFREDRIKSSON.e. not investment research)(SinterCast)as defined in MiFID II.
SinterCast
Company description
SinterCast is a leading supplier of online process control technology and know-how for the reliable high-volume production of Compacted Graphite Iron (CGI). The material is stronger than traditional iron, which enables downsizing, increased thermal and mechanical loading, and increased engine performance. The technology is primarily used in diesel engines for larger passenger vehicles such as SUVs and pick-ups as well as commercial vehicles and offroad equipment.
Risks
Automotive demand, and more specifically demand for larger passenger vehicles such as SUVs and pick-up trucks with diesel engines. Regulation relating to fossil fuels and diesel in particular poses risks to the business model.
Annual sales and adj. EBIT margin | Quarterly sales and adj. EBIT margin |
180 | 45.0 | 35 | |||||||
160 | 40.0 | 30 | |||||||
140 | 35.0 | ||||||||
25 | |||||||||
120 | 30.0 | ||||||||
100 | 25.0 | 20 | |||||||
80 | 20.0 | 15 | |||||||
60 | 15.0 | 10 | |||||||
40 | 10.0 | ||||||||
5 | |||||||||
20 | 5.0 | ||||||||
0 | 0.0 | 0 | |||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | |
Sales (LHS) | Adj EBIT margin % (RHS) |
40.0 | |||||||
35.0 | |||||||
30.0 | |||||||
25.0 | |||||||
20.0 | |||||||
15.0 | |||||||
10.0 | |||||||
5.0 | |||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | 0.0 | |
Q3'21e | Q4'21e | ||||||
Sales (LHS) | Adj EBIT margin % (RHS) |
Source: ABG Sundal Collier, Company data | Source: ABG Sundal Collier, Company data |
EPS estimate changes, 2021e, SEK
7.4 | |||||||||||||||||||||||||
7.2 | |||||||||||||||||||||||||
7.0 | |||||||||||||||||||||||||
6.8 | |||||||||||||||||||||||||
6.6 | |||||||||||||||||||||||||
6.4 | |||||||||||||||||||||||||
6.2 | |||||||||||||||||||||||||
6.0 | |||||||||||||||||||||||||
5.8 | |||||||||||||||||||||||||
5.6 | |||||||||||||||||||||||||
5.4 | 20 | 20 | 20 | 20 | 20 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | ||||||||||||
Aug | - | Sep | - | Oct | - | Nov | - | Dec | - | Jan | - | Feb | - | Mar | - | Apr | - | May | - | Jun | - | Jul | - | Aug | - |
ABGSC | FactSet Consensus Mean |
Source: ABG Sundal Collier, FactSet
EPS estimate changes, 2022e, SEK
10.4 | |||||||||||||||||||||||||
10.2 | |||||||||||||||||||||||||
10.0 | |||||||||||||||||||||||||
9.8 | |||||||||||||||||||||||||
9.6 | |||||||||||||||||||||||||
9.4 | |||||||||||||||||||||||||
9.2 | |||||||||||||||||||||||||
9.0 | |||||||||||||||||||||||||
8.8 | 20 | 20 | 20 | 20 | 20 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | ||||||||||||
Aug | - | Sep | - | Oct | - | Nov | - | Dec | - | Jan | - | Feb | - | Mar | - | Apr | - | May | - | Jun | - | Jul | - | Aug | - |
ABGSC | FactSet Consensus Mean |
Source: ABG Sundal Collier, FactSet
Lease adj. net debt and ND/EBITDA | 12month forward-looking P/E | ||||||||||||||
0 | 0.0 | 28.0 | |||||||||||||
-10 | -0.5 | 26.0 | |||||||||||||
-1.0 | 24.0 | ||||||||||||||
-20 | -1.5 | 22.0 | |||||||||||||
-30 | -2.0 | 20.0 | |||||||||||||
-2.5 | 18.0 | ||||||||||||||
-40 | -3.0 | 16.0 | |||||||||||||
-50 | -3.5 | 14.0 | |||||||||||||
-4.0 | 12.0 | ||||||||||||||
-60 | -4.5 | ||||||||||||||
10.0 | |||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | ||||||
Aug-16 | Aug-17 | Aug-18 | Aug-19 | Aug-20 | Aug-21 | ||||||||||
Net IB debt excl. leasing (LHS) | Net IB debt/EBITDA lease adj. (RHS) | P/E f12m | 5y avg | ||||||
Source: ABG Sundal Collier, Company data | |||||||||
Source: ABG Sundal Collier, Company data |
19 August 2021 | ABG Sundal Collier | 2 |
Document downloaded by Linn FREDRIKSSON (SinterCast)
SinterCast
Q2'21 expectation vs. outcome
Deviation table Income statement Revenue
Gross profit
Opex
EBIT
PTP
Net profit
Growth and margins Revenue grow th EBIT grow th
Gross margin EBIT margin
Sales by segment
Equipment
Series Production
Engineering Service
Total revenue Other metrics Sampling cups Annualised engine eq. (mn)
Last yr. Actual Q2'20 Q2'21
18.7 28.2
12.9 19.7
-12.1-12.5
0.8 7.2
3.0 | 7.4 |
3.0 | 11.4 |
Q2'20 | Q2'21 |
-44% | 51% |
-94% | 800% |
69% | 70% |
4% | 26% |
Q2'20 | Q2'21 |
6.1 | 0.2 |
12.5 | 27.8 |
0.1 | 0.2 |
18.7 | 28.2 |
Q2'20 | Q2'21 |
19,800 | 73,600 |
1.60 | 3.20 |
ABGSCe | |||
y-o-y Q2'21e | Dev % | Dev SEKm | |
51% | 33.6 | -16% | -5.4 |
53% | 25.2 | -22% | -5.5 |
3% | -12.6 | -1% | 0.1 |
800% | 12.6 | -43% | -5.4 |
147% | 12.6 | -41% | -5.2 |
280% | 13.5 | -16% | -2.1 |
y-o-y Q2'21e | Dev % | Dev SEKm | |
80% | -29% | ||
1474% | -674% | ||
1% | 75% | -5% | |
21% | 37% | -12% | |
y-o-y | Q2'21e | Dev % | Dev SEKm |
-97% | 3.3 | -94% | -3.1 |
122% | 29.7 | -6% | -1.9 |
100% | 0.6 | -67% | -0.4 |
51% | 33.6 | -16% | -5.4 |
y-o-y Q2'21e | Dev % | Dev SEKm | |
285% | 76,300 | -4% | |
100% | 3.20 | 0% |
Source: ABG Sundal Collier estimates, company data
Estimate changes, '21e-'23e
Estimate changes | Old forecast | New forecast | SEKm change | % change | ||||||||
SEKm | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e |
Revenue | 119 | 148 | 166 | 112 | 145 | 163 | -8 | -2 | -3 | -6% | -2% | -2% |
Gross profit | 88 | 112 | 126 | 81 | 110 | 124 | -7 | -2 | -2 | -8% | -2% | -2% |
Opex | -48 | -55 | -57 | -46 | -55 | -57 | 1 | 0 | 0 | -3% | 0% | 0% |
EBIT | 41 | 57 | 70 | 35 | 55 | 67 | -6 | -2 | -2 | -14% | -3% | -3% |
PTP | 39 | 57 | 70 | 33 | 55 | 67 | -6 | -2 | -2 | -15% | -3% | -3% |
Net profit | 42 | 66 | 79 | 40 | 64 | 77 | -3 | -2 | -2 | -6% | -3% | -3% |
Growth and margins | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e |
Revenue grow th | 25% | 24% | 13% | 17% | 30% | 12% | -8% | 6% | 0% | |||
EBIT grow th | 88% | 40% | 22% | 61% | 59% | 22% | -27% | 19% | 0% | |||
Gross margin | 74% | 76% | 76% | 73% | 76% | 76% | -1% | 0% | 0% | |||
EBIT margin | 34% | 39% | 42% | 31% | 38% | 41% | -3% | -1% | -1% | |||
Sales split | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e |
Equipment | 13 | 14 | 15 | 8 | 12 | 12 | -5 | -2 | -3 | -35% | -17% | -20% |
Series Production | 104 | 130 | 148 | 101 | 130 | 148 | -3 | 0 | 0 | -3% | 0% | 0% |
Engineering Service | 3 | 3 | 4 | 2 | 3 | 4 | 0 | 0 | 0 | -15% | 0% | 0% |
Total revenue | 119 | 148 | 166 | 112 | 145 | 163 | -8 | -2 | -3 | -6% | -2% | -2% |
Other metrics | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e | 2021e | 2022e | 2023e |
Sampling cups | 218,465 189,960 199,500 | 215,765 189,960 199,500 | -2,700 | 0 | 0 | -1% | 0% | 0% | ||||
Annualised engine eq. (mn) | 3.15 | 4.30 | 5.00 | 3.15 | 4.30 | 5.00 | 0.00 | 0.00 | 0.00 | 0% | 0% | 0% |
Source: ABG Sundal Collier estimates
19 August 2021 | ABG Sundal Collier | 3 |
Document downloaded by Linn FREDRIKSSON (SinterCast) |
SinterCast
Detailed quarterly figures
Quarterly overview | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21e | Q4'21e |
Revenue | 22.9 | 33.5 | 30.8 | 29.3 | 24.6 | 18.7 | 19.2 | 32.9 | 24.3 | 28.2 | 28.3 | 31.1 |
Gross profit | 18.4 | 25.4 | 24.6 | 20.6 | 17.6 | 12.9 | 14.6 | 23.3 | 17.1 | 19.7 | 21.2 | 23.3 |
SG&A | -7.8 | -9.1 | -8.4 | -10.9 | -8.9 | -7.3 | -7.5 | -9.8 | -8.7 | -9.0 | -9.0 | -10.3 |
R&D | -2.2 | -2.7 | -3.0 | -4.1 | -3.3 | -2.3 | -3.2 | -2.9 | -2.6 | -2.8 | -2.8 | -2.8 |
Other opex | 0.5 | -0.7 | 1.3 | -1.8 | 2.5 | -2.5 | -0.3 | -1.3 | 2.7 | -0.8 | -0.2 | -0.2 |
EBIT | 8.9 | 12.9 | 14.5 | 3.8 | 7.9 | 0.8 | 3.6 | 9.3 | 8.5 | 7.2 | 9.2 | 10.0 |
Net financials | -0.6 | 0.3 | -0.3 | 0.4 | -1.3 | 2.2 | 0.1 | -0.3 | -1.6 | 0.2 | 0.0 | 0.0 |
PTP | 8.3 | 13.2 | 14.2 | 4.2 | 6.6 | 3.0 | 3.7 | 9.0 | 6.9 | 7.4 | 9.2 | 10.0 |
Taxes | 0.0 | 0.9 | 0.0 | 7.4 | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | 4.0 | 1.0 | 1.1 |
Net profit | 8.3 | 14.1 | 14.2 | 11.6 | 6.6 | 3.0 | 3.7 | 8.9 | 6.9 | 11.4 | 10.2 | 11.1 |
Growth and margins | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21e | Q4'21e |
Revenue grow th | 38% | 25% | 56% | 19% | 7% | -44% | -38% | 12% | -1% | 51% | 47% | -6% |
EBIT grow th | 82% | 17% | 142% | -49% | -11% | -94% | -75% | 145% | 8% | 795% | 155% | 8% |
Gross margin | 80% | 76% | 80% | 70% | 72% | 69% | 76% | 71% | 70% | 70% | 75% | 75% |
EBIT margin | 39% | 39% | 47% | 13% | 32% | 4% | 19% | 28% | 35% | 25% | 33% | 32% |
Sales split | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21e | Q4'21e |
Equipment | 0.5 | 6.6 | 2.4 | 2.4 | 0.4 | 6.1 | 0.3 | 9.8 | 1.5 | 0.2 | 1.0 | 5.5 |
Series Production | 22.2 | 26.7 | 28.2 | 25.2 | 23.8 | 12.5 | 18.8 | 21.9 | 22.4 | 27.8 | 26.7 | 24.5 |
Engineering Service | 0.2 | 0.2 | 0.2 | 1.7 | 0.5 | 0.1 | 0.1 | 1.1 | 0.4 | 0.2 | 0.6 | 1.1 |
Total revenue | 22.9 | 33.5 | 30.8 | 29.3 | 24.7 | 18.7 | 19.2 | 32.8 | 24.3 | 28.2 | 28.3 | 31.1 |
Other metrics | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21e | Q4'21e |
Sampling cups | 36,800 | 49,400 | 55,700 | 47,900 | 45,100 | 19,800 | 32,900 | 42,800 | 44,600 | 73,600 | 51,065 | 46,500 |
y-o-y | 13% | -28% | 30% | -11% | 23% | -60% | -41% | -11% | -1% | 272% | 55% | 9% |
Annualised engine eq. (mn) | 3.10 | 3.40 | 3.50 | 3.10 | 2.90 | 1.60 | 2.80 | 2.60 | 2.90 | 3.20 | 3.40 | 3.10 |
y-o-y | 24% | 26% | 52% | 19% | -6% | -53% | -20% | -16% | 0% | 100% | 21% | 19% |
Working capital / sales R12m | 24% | 29% | 25% | 22% | 21% | 18% | 22% | 25% | ||||
Net debt/cash | -36 | -25 | -41 | -30 | -39 | -45 | -42 | -22 | ||||
ND/EBITDA | -1.0 | -0.7 | -0.9 | -0.7 | -0.9 | -1.4 | -2.1 | -0.9 | ||||
Equity ratio | 86% | 88% | 90% | 88% | 86% | 85% | 86% | 85% | ||||
FCF conversion (lease adj.) | 59% | 65% | 68% | 74% | 81% | 110% | 80% | 106% | ||||
ROCE | 33% | 37% | 42% | 38% | 34% | 23% | 13% | 19% | ||||
Source: ABG Sundal Collier estimates, company data |
Detailed annual figures
Annual overview | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e |
Revenue | 45.9 | 51.9 | 54.5 | 72.4 | 75.4 | 65.6 | 87.7 | 116.5 | 95.4 | 111.8 | 145.4 | 163.4 |
Gross profit | 32.2 | 37.3 | 40.8 | 55.4 | 58.8 | 50.6 | 68.9 | 89.0 | 68.4 | 81.3 | 110.5 | 124.2 |
SG&A | -26.2 | -24.6 | -24.7 | -26.4 | -25.0 | -25.0 | -28.8 | -36.2 | -33.5 | -37.0 | -38.8 | -40.5 |
R&D | -5.5 | -5.8 | -6.5 | -7.6 | -7.9 | -7.3 | -10.3 | -12.0 | -11.6 | -11.0 | -15.4 | -15.4 |
Other opex | 0.5 | 0.4 | 0.6 | -1.1 | 0.5 | -0.6 | -0.4 | -0.7 | -1.6 | 1.5 | -1.0 | -1.0 |
EBIT | 1.0 | 7.3 | 10.2 | 20.3 | 26.4 | 17.7 | 29.4 | 40.1 | 21.7 | 34.9 | 55.3 | 67.3 |
Net financials | 1.0 | 0.2 | 1.3 | 4.6 | -0.6 | 0.0 | 0.0 | -0.2 | 0.6 | -1.4 | 0.0 | 0.0 |
PTP | 2.0 | 7.5 | 11.5 | 24.9 | 25.8 | 17.7 | 29.4 | 39.9 | 22.3 | 33.5 | 55.3 | 67.3 |
Taxes | -5.7 | 0.6 | 0.9 | 0.8 | 1.0 | 0.9 | 3.3 | 8.3 | -0.1 | 6.1 | 9.2 | 9.2 |
Net profit | -3.7 | 8.1 | 12.4 | 25.7 | 26.8 | 18.6 | 32.7 | 48.2 | 22.2 | 39.6 | 64.5 | 76.5 |
EPS | -0.5 | 1.2 | 1.7 | 3.6 | 3.8 | 2.6 | 4.6 | 6.8 | 3.1 | 5.6 | 9.1 | 10.8 |
DPS | 1.0 | 1.2 | 2.2 | 3.5 | 4.0 | 2.8 | 5.0 | 3.5 | 4.0 | 5.6 | 9.1 | 10.8 |
Growth and margins | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e |
Revenue grow th | -6% | 13% | 5% | 33% | 4% | -13% | 34% | 33% | -18% | 17% | 30% | 12% |
EBIT grow th | -91% | 630% | 40% | 99% | 30% | -33% | 66% | 36% | -46% | 61% | 59% | 22% |
Gross margin | 70% | 72% | 75% | 77% | 78% | 77% | 79% | 76% | 72% | 73% | 76% | 76% |
EBIT margin | 2% | 14% | 19% | 28% | 35% | 27% | 34% | 34% | 23% | 31% | 38% | 41% |
Sales split | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e |
Equipment | 9.0 | 10.1 | 4.9 | 7.7 | 7.1 | 3.7 | 4.6 | 11.9 | 16.6 | 8.2 | 12.0 | 12.0 |
Series Production | 35.8 | 44.1 | 47.8 | 63.6 | 66.4 | 60.7 | 81.3 | 102.3 | 77.0 | 101.3 | 130.0 | 147.9 |
Engineering Service | 1.0 | 1.5 | 1.8 | 1.1 | 1.8 | 1.2 | 1.8 | 2.3 | 1.8 | 2.3 | 3.4 | 3.5 |
Total revenue | 45.8 | 55.7 | 54.5 | 72.4 | 75.3 | 65.6 | 87.7 | 116.5 | 95.4 | 111.8 | 145.4 | 163.4 |
Other metrics | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e |
Sampling cups | 102,400 | 118,500 | 133,000 | 153,000 | 168,800 | 144,600 | 197,900 | 189,800 | 140,600 | 215,765 | 189,960 | 199,500 |
y-o-y | -26% | 16% | 12% | 15% | 10% | -14% | 37% | -4% | -26% | 53% | -12% | 5% |
Annualised engine eq. (mn) | 1.35 | 1.50 | 1.76 | 2.08 | 2.13 | 2.10 | 2.50 | 3.28 | 2.48 | 3.15 | 4.30 | 5.00 |
y-o-y | -4% | 11% | 18% | 18% | 2% | -1% | 19% | 31% | -24% | 27% | 37% | 16% |
Working capital / sales | 24% | 9% | 18% | 13% | 16% | 21% | 24% | 22% | 25% | 24% | 24% | 24% |
Net debt/cash | -35 | -48 | -45 | -48 | -45 | -30 | -33 | -30 | -22 | -23 | -29 | -26 |
ND/EBITDA | -17.7 | -5.9 | -4.1 | -2.3 | -1.7 | -1.6 | -1.0 | -0.7 | -0.9 | -0.6 | -0.5 | -0.4 |
Equity ratio | 94% | 89% | 91% | 88% | 89% | 91% | 90% | 88% | 85% | 85% | 85% | 84% |
FCF conversion (lease adj.) | 8% | 170% | 44% | 73% | 82% | 71% | 68% | 74% | 107% | 74% | 71% | 80% |
ROCE | 1% | 9% | 12% | 22% | 28% | 19% | 32% | 38% | 19% | 29% | 40% | 43% |
Payout ratio | -189% | 104% | 126% | 97% | 106% | 105% | 108% | 51% | 128% | 100% | 100% | 100% |
Source: ABG Sundal Collier estimates, company data |
19 August 2021 | ABG Sundal Collier | 4 |
Document downloaded by Linn FREDRIKSSON (SinterCast) |
SinterCast
ESG profile
Risks and opportunities
SinterCast is a market-leading supplier of process control technology for production of CGI (Compacted Graphite Iron), a form of cast iron that is primarily used in the production of vehicle engines. The material offers higher tensile strength, stiffness and fatigue strength of grey iron and aluminium. This enables smaller-volume engines with higher efficiency (because the engines are lighter, the vehicles have lower emissions as less energy is required to transport them). The producer of the engine (the foundry) is also likely to reduce its production energy costs as the volumes of the engines are smaller, which lowers both electricity consumption and emissions. SinterCast's technologies also enable the foundry to test every batch of liquid iron to ensure that it has the right properties before the castings are produced. This enables savings in terms of energy, costs and the environment.
Company ESG activities
SinterCast has both a direct and an indirect impact on the environment. In the foundry, the improved efficiency of the SinterCast CGI technology reduces energy consumption, lowers CO2 emissions, and reduces the demand for raw materials. On the road, CGI enables the use of more efficient downsized engines, improving fuel economy and reducing CO2 emissions. Potential risks for SinterCast are the future for combustion engines and the timing of OEM decisions, in addition to emissions legislation, which is both a risk and an opportunity.
Social and governance data
2018 | 2019 | 2020 | |
Women in workforce % | 15 | 18 | 19 |
Women in management % | 0 | 0 | 0 |
Women in board % | 19 | 15 | 15 |
CEO salary, SEKm p.a. | na | na | na |
Employee turnover % | na | na | na |
Employee absence % | na | na | na |
Person responsible for sustainability: | Steve | Dawson | |
Senior management: | Yes |
Key issues* | ABGSC weight |
Environment | 70% |
Carbon emissions | |
Pollution and waste | |
Toxic emissions and waste | |
Social | 20% |
Product safety and quality | |
Chemical safety | |
Product liability | |
Governance | 10% |
Business ethics
Corporate behaviour
Corporate governance
Previous ESG incidents
None
Exposure to ESG Trends
Energy efficiency, Reduced fuel consumption
*based on the MSCI framework but not using all the parameters.
19 August 2021 | ABG Sundal Collier | 5 |
Document downloaded by Linn FREDRIKSSON (SinterCast) |
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SinterCast AB published this content on 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 13:13:12 UTC.