Sygnity Forecast: Q3 2022/23 Revenue Growth Expected, Negative View Maintained

Sygnity: Forecast of 2022/23 Q3

Results Recommendation: sell | target price: PLN 20.70| current price: PLN 34.50

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 third quarter of fiscal 2022/23 (calendar Q2 2023), coupled with a slightly higher gross margin. EBITDA is estimated at PLN 8.9m, suggesting a decline of about 3% y/y from the corresponding year-ago quarter. Hence, we maintain a negative view on the company.

 

 

▪ We expect 3Q'22/23 revenue to come in at PLN 55.8 million, +3.0% y/y.

▪ Gross margin could register 31.0% after an 0.5pp y/y rebound. ▪ SG&A expenses are projected at PLN 11.0 million compared to PLN 10.2 million a year earlier.

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

▪ We estimate the quarterly EBIT at PLN 6.3 million and EBITDA at PLN 8.9 million (i.e., -3.5%/-3% y/y).

▪ After a PLN 0.2 million net loss of financing activity and an effective tax rate of 19%, net profit may come in at around PLN 4.9 million.

 

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