• Minor Q3 miss but strong YTD performance
• Strong balance sheet, ready to act on opportunities
• Fair value fine-tuned to SEK 265-382

Small, negative Q3 return

NAVPS came in at SEK 304, -3% vs. ABGSCe (312), and down 2% q-o-q. The total shareholder return (TSR) was -3% (SIXRX +4%) as the discount to NAV increased by 2pp to 11%. However, the YTD TSR amounts to 22%. The main driver of the NAV miss was negative valuation revisions in Ge-Te Media, Team Olivia, and Fasticon amid weaker results. We estimate the current net cash position at SEK 127m, and expect further dividends from Team Olivia (which has now sold its shares in Humana) and Ge-Te Media. In our view, this gives Byggmästaren ample room to act on opportunities.

Safe Life: high acquisition activity and new financing round

While valuations were lowered in the smaller holdings, the valuation of Safe Life was left intact, despite the latest SEK 150m financing round resulting in a slightly higher valuation compared to the prior, larger round. Safe Life has been highly active, with three acquisitions announced since the Q2 report. We expect this will continue, and also note the high activity in Green Landscaping. Safe Life showed 50% sales growth in Q3, despite the continued high inventory levels amongst distributors temporarily holding back sales, as end-customer demand is strong. We believe the company is well-positioned to maintain 15-20% organic growth, consolidate the AED market, and achieve an adj. EBITA margin of 10-15%. Valuation at ~13x 2024e pro-forma EBITA appears conservative compared to industry peers.

14% NAV discount above historical average and peers

Byggmästaren boasts a strong long-term performance track record. This trend has continued in 2024. Meanwhile, the discount to NAV remains high at 14%. This level is well above our target range and above the historical average of 9% and the current peer average of 12%. We fine-tune our fair value range to SEK 265-382 (265-387).