Kongsberg Automotive (AO) | Hold | Q2 first take: Earnings beat

研报英文原文证据摘录

Kongsberg Automotive (AO) | Hold | Q2 first take: Earnings beat

Kongsberg Automotive Hold | Target Price: NOK2.10

Company description Management

Kongsberg Automotive mainly supplies parts and systems to vehicle producers Trond Fiskum, CEO

and primarly heavy-duty vehicles producers (c. 60% of sales) and light vehicle Erik Magelssen, CFO

producers (c.30%) through its business areas Drive Control Systems and Flow Key shareholders

Control Systems. The main markets are Europe with close to 50% of sales and Free float 90.00%

NAFTA with c. 35% of sales. The company has some 4,500 employees. Arne Fredly 12.09%

Nordnet Bank AB 3.78%

Arild Christoffersen 2.27%

Investment case Valuation methodology

The divestitures of the interior division and light-duty cables in Our target price is based on a mix of peer multiples and a DCF.

2021 and off-highway in 2022 have reduced gearing. The Peers are normally found in the automotive OEM supplier

divestitures have also reduced the exposure to light vehicle segment.

production. Our DCF valuation is based on a WACC of 10%, an EBITDA margin

We expect the company to outgrow global vehicle production of 8%, and a terminal growth rate of 2%.

on the back of its order backlog, which is likely to lift sales by Risks to our rating

some 20%+ over the next 3-4 years. Difficulties in passing on higher development costs when

The changeover to more electrified vehicles is expected to have customers try to adapt to tough market conditions.

a limited impact. The company provides a limited supply of Part of the order backlog includes newly developed

components for combustion engines. components to be supplied to new customers, which pose a

Catalysts higher risk of recalls and warranty issues.

A recovery in vehicle production.