Q1’21 largely in line with ABGSC estimates

450 Dosells to be rolled out from Q2’21e onwards

Maintain fair value range of SEK 2.18-6.87 per share

Q1’21 revenues of SEK 0.2m vs. ABGSCe SEK 0.2m
iZafe’s Q1’21 was relatively slow in terms of sales growth, with the company focusing on product development and production in preparation for Q2’21e and onwards (more on this below). Net sales were SEK 0.2m, slightly below ABGSC estimates at SEK 0.3m and driven entirely by iZafe Health (Dosell). Operating costs were largely in line with our estimates at SEK -6.1m, driven by further development and commercialisation of Dosell as the product is e.g. adapted for launch in new markets. The reduction in personnel costs is attributable to the divestment of iZafe AB, where the average number of employees amounted to 9 in Q1’21 vs. 17 in Q1’20. Reported EBITDA was SEK -6.1m, slightly better than our estimate of SEK -6.8m.

Estimate changes driven by the Q1’21 report
Our estimates remain largely intact. Our ‘21e revisions are driven by the Q1’21 report, and our ’22e-‘23e EPS revisions are driven by an adjustment of the number of outstanding shares.

Fair value SEK 2.18-6.87 per share, EV/sales 27x-6x ‘21e-‘23e
Our estimates remain largely unchanged, and our DCF fair value range of SEK 2.18-6.87 per share remains intact. We note that on our estimates and at the current share price, iZafe is trading at an EV/sales of 27x-6x for ‘21e-‘23e. In terms of 2021e, we believe that sales will be limited in H1’21e, as iZafe prepares and produces the rollout of the 450 pre-ordered Dosells; as such, we expect growth to pick up considerably in H2’21e. Growth will also likely be aided by the release of the consumer version of Dosell, targeting a market of +700,000 consumers.

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