Demand increasing in all segments
We raise both sales and margin assumptions
Fair value range of SEK 57-84 (45-68)
Capacent reported Q2 sales of SEK 59.3m (+30% y-o-y) with both the Swedish and Finnish operations showing a clear improvement over last year. In Sweden, we saw strong sales from Management Consulting (MC) and Capasearch, whereas Capacify posted a third consecutive quarter above SEK 15m in sales, and ended the quarter with a record high order book. Group sales were 11% better than we expected, and the deviation was mainly driven by the Swedish operations. Adj. EBIT was SEK 7.9m (-2.4m), 31% ahead of ABGSCe at SEK 6m and corresponding to an EBIT margin of 13.3%. The deviation was entirely driven by the Swedish operations, where MC showed signs of a sustained improvement in profitability since last year’s restructuring, with a Q2 EBIT margin of 21.4%. Capasearch also showed impressive profitability, with an EBIT margin of 35.7% in Q2; we consider this to represent a breakthrough for that part of the business given the sales increase of over 100% y-o-y.
Our positive revisions and a raised view towards ‘22e lead us to upgrade our fair value range to SEK 57-84 (45-68). The share is trading at a P/E of 6.8x and a dividend yield of 9.5% on our forecast for 2022.