Sygnity: Forecast for 4Q 2022/23 Results - Expected Growth with Stable Profitability

Sygnity: Forecast of 2022/23 Q4 Results

Recommendation: sell | target price: PLN 21.60 | current price: PLN 29.00 SGN PW;

SGN.WA | IT, Poland

Analyst: Paweł Szpigiel +48 509 603 258

 

We expect Sygnity to report y/y revenue growth of 3.0% in the fourth quarter of fiscal 2022/23 (calendar Q3 2023), coupled with a slightly higher gross margin. EBITDA is expected to come in at ca. PLN 8.0m after a year-on-year increase of ca. 9%. We stand by our full-year forecasts for Sygnity.

▪ We expect 4Q'22/23 revenue to come in at PLN 53.3 million, +3.0% y/y.

▪ Gross margin may register 30.5% after 2.2pp y/y rebound.

▪ SG&A expenses are projected at PLN 10.9m compared to PLN 10.5m a year earlier.

▪ One-time events probably had a neutral effect on the quarterly results.

▪ We estimate the quarterly EBIT at PLN 5.3m (+17% y/y) and EBITDA at PLN 8.0m (+9% y/y).

▪ After a PLN 0.2m net loss of financing activity and an effective tax rate of 19%, net profit may come in at around PLN 4.1m.

 

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