Net Sales came in at SEK7.4m, -14% Y/Y, well below our estimate of SEK12.9m (-43% deviation). We think the reason for the deviation is twofold. First is seasonality appears to be smoothing out, with H2 strong rather than just Q4. Secondly, Q4’21 was exceedingly strong, a fact we had not appreciated earlier. Moreover, the quarter was strong regarding orders, evident from customer prepayments. For H1’23, the order book stands at SEK8.5m and shows the quarterly seasonality is smoothing out.

After visiting Gasporox’s facilities, we see increased potential in Gasporox’s ability to extend its product portfolio. We learned that a small part of the at-line equipment needs to be changed to fit new form factors. We also better understand the possible form factors Gasporox could cover. Each new form factor requires a new set of high-margin reference tests. Thus, we believe Gasporox has only scratched the surface of what is achievable in terms of after-market services and product line extension. Possibilities include extended warranties, reference tests, yearly calibration services, etc. The pricing power within these segments is high, and the pharmaceutical industry demands yearly calibrations for quality assurance.

The Company continues to develop its product portfolio and expand geographically. Along with more attention paid to the food segment, we believe the Company is doing everything right to build long-term shareholder value. We have increased the growth rate by 1pp to 45% from 44% for 2023 and 5pp to 40% from 35% for 2024 as we expect the US expansion to bear fruit and underlying business momentum to accelerate. We have also increased our OPEX estimate slightly to account for expansion costs. However, due to the a lower base, our net sales estimates are reduced by 17%-20%, and our EBITDA estimates are reduced by 25-68% for 2023e to 2025e. Our new fair value range is SEK12-45 with a Base case of SEK25 per share. The old range was SEK13-54 with a base case of SEK31 per share.