InTiCa Systems Hold (SMC Research) 18.09.2024 | Analyze

According to SMC Research have difficult market conditions at InTiCa Systems In the first half of the year, sales fell by 13 percent to EUR 39.4 million, but EBITDA was still increased by 7 percent to EUR 3.7 million. SMC analyst Holger Steffen ultimately expects a return to the growth path thanks to new initiatives, but continues to rate the share as hold until this becomes clear.

According to SMC Research, InTiCa Systems is struggling with difficult market conditions, which led to a 13 percent drop in sales to EUR 39.4 million in the first half of the year. A normalization of the procurement situation and process improvements have nevertheless enabled an increase in EBITDA by 7 percent to EUR 3.7 million, while EBIT was roughly at the same level as the previous year at EUR 0.5 million. For the full year, management is only expecting revenues at the lower end of the communicated target range of EUR 80 to 95 million, but the EBIT margin should continue to be between 0 and 2.5 percent.

The company is currently implementing several growth initiatives to expand and diversify its customer base. In the Mobility segment, where InTiCa has previously focused on the passenger car business, sales are now being pushed into many related areas (commercial vehicles, special vehicles, rail and aviation). In addition, special products for industrial plants or medical technology, for example, are being developed as a new strategic component in the Industry & Infrastructure segment.

It will probably take some time before significant revenues are generated here, but InTiCa has already proven several times in the past that it can very successfully develop new business areas. Together with a fundamentally intact trend towards the electrification of various sectors, which sooner or later suggests a recovery in market dynamics at least in some of the sectors already addressed (e.g. electromobility and charging technology), the company should ultimately return to the growth path.

However, the analysts have reduced their estimates for the current year and have also more carefully assessed the course they assume in the detailed forecast period. Although their price target has been reduced from EUR 8.00 to EUR 6.00, it offers great potential for recovery in view of the medium-term growth and margin potential. The analysts' verdict is still “hold” until a return to the growth path is clearly reflected in the figures.

(Source: Aktien-Global-Researchguide, September 18, 2024 at 8:38 a.m.)

Please note our disclaimer regarding the identity of the person forwarding the information and possible conflicts of interest: http://www.aktien-global.de/impressum/

Information in accordance with the Delegated Regulation (EU) 2016/958

The financial analysis underlying this summary was completed on September 18, 2024 at 6:55 a.m. and published on September 18, 2024 at 8:15 a.m.

They can be viewed at the following address: https://www.smc-research.com/wp-content/uploads/2024/09/2024-09-18-SMC-Studie-InTiCa-Systems_frei.pdf

The disclosure of conflicts of interest associated with the original document can be found in the appendix/disclaimer of the document.

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