Nanologica Q1 2024: Mixed start of the year
Research Update
2024-04-29
08:00
Analyst Q&A
Closed
Filip Einarsson answered 2 questions.
Redeye returns with an updated view on Nanologica following its Q1 report. Sales and EBIT was softer than our estimates, but the company reported its highest quarterly chromatography sales to date. We somewhat lower our base case.
Filip Einarsson
Nanologica's Q1 results fell slightly below our estimates, driven by lower sales and higher costs compared to our projections. Despite this, the quarter saw chromatography sales reach SEK5m, marking the highest quarterly sales to date. Anticipated improvements throughout 2024 should spur growth later in the year.
The company has faced a setback in production, leading to an impairment loss of SEK4m. Following this setback, the company has restored its original production configuration and is pursuing measures to enhance yield and optimize production economics. Nanologica has also restructured its agreement with Yunbo Technologies, taking over responsibility for direct sales in preparative chromatography while retaining the existing structure for analytical and semi-preparative chromatography. Customer evaluations for both NLAB Saga and NLAB Siv are ongoing with the two Asian customers.
In the report, the company's 2024 target of SEK100m in sales is updated to "an annual rate of SEK100m by the end of the year". We adjust our model for the report and this updated outlook. Accordingly, we somewhat lower our base case to SEK11 (12). Sales ramping up in H2 is a likely catalyst to close the valuation gap.
| SEKm | 2022 | 2023 | 2024e | 2025e | 2026e |
| Net Sales | 1.6 | 1.4 | 61.4 | 168.4 | 252.5 |
| Sales Growth | -88.0% | -7.1% | 4155% | 174% | 50.0% |
| EBITDA | -39.0 | -50.6 | -23.0 | 35.8 | 68.5 |
| EBIT | -50.9 | -70.0 | -42.7 | 16.7 | 44.4 |
| EBIT Margin | -3270% | -4845% | -69.6% | 9.9% | 17.6% |
| EV/Sales | 188 | 253 | 4.3 | 1.7 | 1.1 |
| EV/EBIT | -5.8 | -5.2 | -6.2 | 16.9 | 6.3 |
Overall, the report came in below our estimates both in terms of sales and EBIT. However, we would argue that on the sales level, in absolute terms, the deviation is relatively small and thus within the margin of error. We had estimated sales of SEK7.2m compared to the reported SEK5.0m. Nevertheless, today's report confirmed the previously reported deliveries of the non-silica-based-product.
Disclosures and disclaimers