This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme
Recommendation: sell | target price: PLN 13.30 | current price: PLN 18.10
SGN PW; SGN.WA | IT, Poland
Sygnity’s revenue for the fourth quarter of fiscal FY2022 (three months ended 30 September 2022) is expected to post a 9% rise from the corresponding year-ago period, accompanied by a small decline in gross margin. We believe the quarterly EBITDA might come in at PLN 10.8m after falling 13% from the year-ago level, reinforcing our bearish view on Sygnity.
â–ª Sygnity generated estimated revenue of PLN 55.7m in Q4 FY2022, indicating an increase of 9% year over year.
â–ª The gross margin could register 30.5% after 0.8pp y/y contraction.
â–ª We expect fourth-quarter SG&A expenses of PLN 8.3m vs. PLN 6.4m the year before.
â–ª One-time events probably had a neutral effect on the quarterly results.
â–ª Consequently, we anticipate EBIT of PLN 8.2m and we assume EBITDA will approximate PLN 10.8m after falling 13% from the year-ago quarter.
â–ª After a loss on financing activity in the projected amount of PLN 0.9m, and after tax at an effective rate of 19%, net profit for Q4 FY2022 might register PLN 5.9m
Analyst: Paweł Szpigiel +48 509 603 258
GPW’s Analytical Coverage Support Programme 3.0
