This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme
Sygnity: Forecast of FY2022 Q3 Results
Recommendation: sell | target price: PLN 13.50 | current price: PLN 18.00
SGN PW; SGN.WA | IT, Poland
Sygnity will report results for the third quarter of fiscal FY2022, ended 30 June 2022, on Friday, 12 August.
We expect quarterly revenue to post a 5% rise from the corresponding year-ago period but with costs rising faster the gross margin will probably register a 2.6pp y/y reduction.
As a result, quarterly EBITDA might come in at PLN 10.1m after falling 8% from the year-ago level, reinforcing our bearish view on Sygnity.
- Sygnity generated estimated revenue of PLN 52.0m in Q3 FY2022, an increase of 5% year over year.
- The gross margin could register 29.5% after a 2.6pp decline from Q3 FY2021.
- We expect stable SG&A expenses relative to the year-ago quarter thanks to continued savings measures.
- One-time events probably had a neutral effect on quarterly results.
- As a result, we expect EBIT to come in at PLN 7.5m and we see EBITDA as falling 8% to PLN 10.1m.
- After a PLN 1.9m loss on financing activity and tax at an effective rate of 19.0%, net profit for Q3 2022 might end up at PLN 4.5m.
Analyst: Paweł Szpigiel +48 22 438 24 06 | +48 509 603 258
