Doro
Doro - Let the battle begin (ABG Sundal Collier)

2020-07-01 14:46
Q2 due on 16 July, we expect sales -27% y-o-y
Underlying estimates largely intact
Robust balance sheet, 9x ‘21e EV/EBIT
Q2 thoughts
While Doro’s Q1 numbers held up well despite the COVID-19 outbreak (sales -9% y-o-y, of which Phones -39% y-o-y), we see a soft Q2’20e on the horizon as the pandemic will take its toll on Doro, and especially on Phones sales. In conjunction with the Q1 report, management said that order intake for Phones in April was down by roughly the same amount as in the second half of March, which we judge corresponded to be about -40% y-o-y. For its Care offering, we believe that Doro has seen an increase in demand lately from public entities seeking to digitalise their healthcare systems in light of the pandemic. Even so, we anticipate that activity in terms of new procurements has been low during Q2 as municipalities’ near-term focus has plausibly been elsewhere.

Q2e: sales of SEK 337m and EBIT of SEK -2m
We leave our underlying 2020 forecasts relatively intact ahead of Q2, but due to recent FX movements we cut ‘20e sales by -1%. Although we have seen positive signs lately in terms of consumer confidence returning, we estimate Phones to display -41% y-o-y growth in Q2e. While we do not expect any v-shaped recovery in terms of demand, we see improved metrics in H2’20e (-22% y-o-y). For Care, we forecast Q2 sales of SEK 131m (+20% y-o-y, mainly due to M&A). In total, this leads us to forecast Q2 group sales of SEK 337m for an EBIT of SEK -2m, with Doro’s recently initiated costs programme supporting the latter.

We see good growth prospects for Care
Despite a weak 2020, we argue that the pandemic has enhanced Doro’s already market-leading position within telecare. As of Q1’20, Care accounted for 31% of sales and we see this metric expanding to 34% in 2021e. This forecast does not include any M&A, which we think Doro is likely to conduct before the end of 2020. At the current share price, Doro is trading at 9x ‘21e EV/EBIT coupled with a 9% FCF yield.


  • Läs mer på Introduce

  • Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.

info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se

DORO - I dag

{point.key}

Marknadsöversikt

Stockholmsbörsen, OMXS30

I dag
-
Senast
-
{point.key}

Världsindex

Index +/- % Senast
DAX - -
Hang Seng - -
Nikkei - -

Valutor

Valuta +/- % Senast
USD/SEK - -
EUR/SEK - -
GBP/SEK - -
EUR/USD - -

Räntor

Ränta +/- % Senast
5-års ränta - -
10-års ränta - -

Råvaror

Råvara +/- % Senast
Guld - -
Silver - -
Koppar - -