ZUE Company: Strong Performance in 2023, Future Forecasts, and Evaluation Ratios

ZUE has had a strong Q1-Q3'23 in terms of revenue, and we also expect a seasonally strong Q4'23. At the same time, higher-than-forecast throughput in 2023 translates into less available backlog for 2024. Part of this gap could potentially be filled by contracts from tenders on which the company has the most favourable bids. Currently, our forecasts for 2023/24/25 assume PLN 1.3 / 1.0 / 1.1bn revenue and PLN 16 / 12 /17m net profit respectively (2023 includes PLN 5m positive other activities). The company is trading at EV/EBITDA=5.5x for 2023-24 and 3.8x for 2025 on our forecasts. Our forecasts do not take into account potential valorisation and surcharges requested by the company.