• Sales +36% and EBIT +82% vs. ABGSCe
• Expect cons. to raise '25e-'26e sales by ~15%
• Overall a strong beat across the board

Strong Q4 report

I-Tech delivered higher than expected sales of SEK 58m (+36% vs. ABGSCe 42m) +129% y-o-y (+120% org, +9% FX). EBIT was SEK 17m (+82% vs. ABGSCe 9m), for a margin of 29% (ABGSCe +22%). EPS came in at SEK 1.2 (+34% vs. ABGSCe) and FCF lease adj. came in at SEK 5.9m (-38% vs. ABGSCe 9.5m), -543% y-o-y. In the quarter, costs increased, mainly as a result of the EU process and an increase in personnel costs due to year-end bonuses. We estimate the costs linked to the EU process to be at least in the same order of magnitude as in previous quarters (~SEK 1.6m). Despite this, the company continued to grow on the back of higher-than-expected sales. Additionally, the company announced a dividend policy comprising an ordinary dividend of SEK 1.00 per share with an extra dividend of SEK 0.75 per share, in total SEK 1.75 (1.5) corresponding to 53% of net profit for the year (88%).

Diversifying customer base

We expect cons. will raise '25e-'26e sales by ~15%. We find it promising that I-tech is continuing its growth journey despite the ongoing regulatory issue. In its report the company highlights that its customer base is diversifying and that its share of Asia sales increased to 97% (92%).

Valuation

The share has returned +33% L3M (vs. peer median +2.7% and OMXSSMAC +2.6%), and is currently trading at 18x-11x '24e-'26e P/E on our pre-report estimates vs. the peer median of 47x-27x. The company will host a presentation of the Q4 results at 10:30 CET.